So welcome back my friends before i start you need to learn something about forex pattern in my previous article so you need to understand it. here i will also gather some information about harmonic scanner so also take care of it.
Candlestick charts provide more information than line, OHLC or area graphics. For this reason, candle designs are a useful tool for measuring price movements in any time frame. While there are many models of candlesticks, there is one that is particularly useful in the Forex market.
A wraparound model is an excellent business opportunity because it can be easily discovered and the price movement indicates a sharp and immediate change of direction. In a downtrend, the actual body of a rising candle will completely envelop the previous real body of the candle (bullish packaging). In an uptrend, a real candle body under the swallow swallows the real body of the previous candle (bearish shell). you will also get some information about harmonic pattern indicator so stay tuned with us.
The model is very negotiable because the action on prices indicates a strong reversal since the previous candle has already been completely reversed. The operator can participate at the beginning of a possible trend by setting up a stop. In Figure 3, we see a bullish envelope model that signals the emergence of an uptrend. The entry is the opening of the first bar after the pattern has been formed, in this case 1.4400. The ceiling is placed below the minimum sample at 1.4157. There is no clear profit target for this model. (For more information on the art of candles, see The Basics of Candle Art.)