Questions - answers
GBPUSD M15. 18.01.2013 You marked this way:
These 1-2-3 don’t belong to the given timeframe. These Forex figures 1-2-3 are from the older frame. Not М15, but Н1. So if you just click from frame М15 to frame Н1, not changing the drawn pattern, you will see the next:
And this is how the patterns 1-2-3 will look correctly in the frame М15:
Thus, by classic, work with the pattern 1-2-3 is meant to the breakdown of point 2. In “The return line” strategy we work to the breakdown of point 3, or in the return line.
If you number the patterns 1-2-3 which are shown on the screen from the bottom up, for example we’ll call the lower one, 1-2-3 in white color, number 1, the middle one, in turquoise color, we’ll call number 2, and the last one, upper in white color, - number 3. I must make a reservation, we don’t work with the first 1-2-3. There should be more or less considerable pullback. If you didn’t break point 3 on the second 1-2-3, reset the order on the next drawn pattern 1-2-3 to the point 3, etc. Move the order until it’s obvious that it’s not a pullback, but turning. The phrase “move the order” is from here. If the turning has begun, delete the order and don’t move it till the next favorable trading conditions.
It should be noted to avoid the confusion, that on every screen those Forex figures are taken, which are shown on the page with the description of “The return line” strategy. Now I hope everything has become clear.
For the upward trend – specularly.
As for belonging of the pattern 1-2-3 to the timeframe.
If you imagine that the pattern you draw is a ladder, you will see the stairs leading up to the next floor on your ladder.
Draw these stairs and get the 1-2-3 of this frame.
Change for the frame below, in this case M5. The former stairs (vinous color) will become a ladder with the present frame stairs (yellow color).