A trendline breakout refers to a situation in technical analysis where the price of an asset breaks through a trendline that has been established by connecting previous highs or lows. Trendlines are drawn on price charts to help identify the direction and strength of a trend. When a trendline is broken, it can indicate a potential change in the trend and the possibility of a new price movement.
There are two types of trendline breakouts: bullish and bearish. A bullish trendline breakout occurs when the price breaks above a downward sloping trendline, suggesting a potential uptrend or reversal. On the other hand, a bearish trendline breakout happens when the price breaks below an upward sloping trendline, indicating a potential downtrend or reversal.
This Indicator is a free version of the One to Three Trendline Breakout indicator . This version only works for EURUSD H1 (1 Hour) . To use for all pairs and time frames , get the pro version on this link : Click Here to Get One to Three Trendline Breakout
PATTERN BACKGROUND
The 1-3 Trendline Breakout pattern is formed by four(4) points which are composed of three (3) primary points and the pattern neck. A trendline is always formed by the point 1 and the neck of the pattern . When price breaks out of the trendline formed , it usually indicates a shift in supply and demand and thus a possible new trend. The 1-3 Trendline Pattern occurs in every market and it is formed by supply and demand. This means the pattern is not limited to forex market only but can also be used to trade commodities are stocks.
HOW TO USE
1. Spot the pattern when the signal comes up
2. Make sure the trendline has not been broken before .When this happens in most cases it is usually a false pattern but there are also some successful pattern formed this way. Our advise is if you are going to risk taking this type of pattern , make sure the stop loss/risk level is very small.
3. Trade the signal
4. Close partial profit at a 1:1 risk to reward ratio. This means when price reaches a profit equals to the risk, close out part of the trade and ride out the rest profits.
SETTINGS / TRADING MANUAL
To get more detailed description of this product and how to use it , including explanation of the settings . Please go the One to Three Trendline Breakout page to get any detailed explanation you need.
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