Forex reversal pattern Double Pick for accurate market entry

In this article I want to tell you about a technical analysis tool called forex pattern Double Pick. Sometimes it is mistaken for a candle model as a double tip/tip. However, this is a completely different formation of candlesticks. In translation, the pattern name means “double-selected”. It belongs to the category of reversing candlestick models. Timely tracking of the pattern on the price chart allows the trader to open a trade order at the optimal point, when the market changes the direction of movement to the opposite. Forex patternDouble Pick can be used in trading any currency pair. Recommended timeframes: from H1 and above.

The Wild Double Pick

Bull model rules include several conditions.

1. 1. The market shows a downward trend.
   2. The price chart forms a local minimum (min 1).
   3. Then the rollback occurs and the local maximum (max).

1. After that, the local minimum (min 1) is updated and a new local minimum (min 2) appears which is lower than the previous one.
2. Next, there is a rollback, and the price breaks the upper line of the channel built on three points: min 1, max and min 2. This is the signal to open a BUY.

trade order

Let’s see what the above looks like on the chart: 

Bear model Double Pick

Rules of formation of bear model similar to.

1. 1. The market is showing an upward trend.
   2. The chart of the currency pair price forms a local maximum (max 1).
   3. After that, the price rolls back and a local minimum (min).

is formed

1. Then the local maximum is updated and a new local maximum appears (max 2). It’s higher than the previous one.
2. Next, there is another rollback, and the price breaks the lower line of the channel, built on three points: max 1, max 2 and min. This is a signal to open a trade order SELL.

Example of a bear model on a chart:

After opening a trade, a stop-loss can be placed a few points below min 2 for buying or a few points above max 2 for selling. If it turns out to be very big, we can do the following. Stretch Fibo from the opening price to min 2 or max 2. And then sets the SL at 76.4.

Close the deal is recommended in two parts, using again the Fibonacci levels. After closing the half of the deal, the rest of the deal, we transfer to a lossless position.

Forex pattern Double Pick is a very useful tool for testing. It should be remembered and used for exact market entry when it appears on the chart.Fyodorov’s Inga10.12.2018