Tik Tak Toe
Graphical models are in a wide use both: for the analysis of the quotes
on the screen of the terminal and with the charts of the method "Tic tac
toe". They don’t give any guaranties regarding the directions and
purposes, but quite often recommendations, based on these models give
positive results. The principle of the method is based on the ratio of
the supply and demand. The result is then leads to the graphical image,
analysis of which allows trader to plan his orders.
Choose the Best Forex Brokers Right Now!
http://www.topforexbrokerscomparison.com
Double Top
The increase of the price is shown on the Pic 1, after which the
correction as long as 3 cells takes place, after what the price
increases and reaches the level of the first column of the crosses. This
figure is called Double Top. In case in this moment the number of the
sellers prevails over the number of the buyers, then the price will rise
over the first top. If the buyers win, than the price would rise under
the first top. From this example we can see that the price has
increased, let’s place the cross above the previous top and this is the
signal to buy. Further price increase is most probable.
|
Pic 1 Double Top
|
Double Top, strengthened with the support
You can see the example of the Double Top, which differs from the
previous one by the fact that the price has hit one price twice and has
fended from it, creating the horizontal Support Level, on the Pic 2.
Then the price, after fending, punches the former bears’ Resistance
Level (inclined), reaches the top level, creating second and punching
it. This is the signal to buy, which is by the way stronger than in the
last example.
|
Pic 2 Double Top, strengthened with the support
|
Double Bottoms
Double bottom is the figure, reverse to the Double Top figure. It
appears upon the decrease of the price till the level of the previous
bottom. The break of this level is the signal to sell.
|
Pic 3 Double Bottoms
|
Double Bottom with resistance
The example on the Pic 4 shows that when the price after rising, bounces
up to the length of 4 zeros. This is followed by the breakdown to the
top (note the resistant level on the angle of 45 degrees) and the
forming of the Double Top figure. But the sellers appeared to be
stronger. The breaking of the figure does not take place, there is no
signal to buy and the price goes down. Then the breakdown of the Double
Bottom takes place. The Double Bottom Figure with resistance is much
stronger than the previous one.
|
Pic 4 Double Bottom with resistance
|
Double Top with rising bottom
Picture 5 shows the situation, when the column of the zeros finishes
over the previous and the column of the crosses has the rising bottom.
It reaches the level of the previous top and breaks it, giving the
signal to buy. This case demonstrates the weakening of the sellers on
the market. The buyers take up more and more.
This model is stronger than two described earlier. Upon noticing it,
trader has more basics to assume the price raise.
|
Pic 5 Double Top with rising bottom
|
Double Bottoms with the descending top
Double Bottoms with the descending top is the figure, opposite to the
one, described earlier. We can see the weakening of the demand and the
strengthening of the proposal. This figure is stronger than two previous
bears’ models.
|
Pic 6 Double Bottoms with the descending top
|
Triple top
The Pic 7 shows the situation when the price describes the double top
and doesn’t break it. The price bounces, but after it, is rises upper
than two previous tops, giving the signal to buy. The more the price
bonuses from the support line, the more is possibility of breaking down
of the resistance level. Increasing bottom also strengthens the
possibility of the rise.
|
Pic 7 Triple top
|
Triple bottoms
Triple bottom is the opposite figure to the triple tops. The demand is weakening, the supply is increasing.
|
Pic 8 Triple bottoms
|
Bullish Catapult formation
Catapult represents the synthesis of the Triple Top and Double Top. On
the pic 9 we can see the model of the Triple Top. There is the signal to
buy. This is followed by the bounce with the bottom one cell higher and
the retreat. As a result, we have Double Top, which the price breaks.
The rising bottom characterizes the demand strengthening.
Double Top confirms the signals of the strong figure Triple Top. I.e.,
the Catapult model is the strong figure. We can open the buy order with
the stop loss near the bottom of the last crosses column. After the
Triple Top transforms into Catapult, we can open one more buy order and
both stop losses to place near the bottom of the newly created crosses
column.
|
Pic 9 Bullish Catapult formation
|
Bearish Catapult formation
Opposite model to the Bullish Catapult formation is shown on the pic 10.
It’s the synthesis of the Triple Bottom and Double Bottom with the
reducing top.
|
Pic 10 Bearish Catapult formation
|
Triangle formations
Triangle formations represents rising bottom and decreasing tops. Model
has to have not less than 5 columns. The battle between buyers and
sellers is going on and someone has to throw in the towel. So, we can
only wait for the price outputting from the Triangle. If the break to
the top appears, we can clearly see the Double Top. We know what to do
after. If the price breaks the figure down, the Double Bottom will be
formed. We also know this figure. We can wait for the outputting from
the triangle, or we can place the pending orders in both sides. This is
just the details of the strategy, which you will build, based on this
method "Tic tac toe".
There are different variations of the described models. Primarily, you
have to learn the main figures, which is not hard. In the future, you
will easily recognize them and come to corresponding decisions.
While working with each another method, the most important is to
understand, what you are doing, don’t make hasty actions, work exactly
by the strategy, conduct correct the Money Management.
|
Pic 11 Triangle formations |