There are so many chart patterns out there for traders to use, it can be confusing at times. There are a few main ones however which work beautifully and are easy to spot with the market reversal alerts indicator.
You can download the market structure reversal indicator here: https://www.mql5.com/en/market/product/46295
Download the dashboard to alert to all time frames and pairs here: https://www.mql5.com/en/market/product/62751/
NOTE: DOES NOT REQUIRE THE INDICATOR ABOVE TO POWER IT!
Video Transcript
So let’s have a look at chart patterns. In particular we’re going to be concentrating on reversal patterns, or the main ones to look out for anyway. But as you can see on the screen here, these are the main chart patterns that most people use. These are used a lot by institutional traders as well, and hedge funds to time their entries into the market when they’re getting into their positions. So the ones at the top you can see here, the first row and the second row, those are the continuation patterns. So the idea behind the market reversal alerts indicator is to tell you when these potential patterns are playing out. So each of these patterns will have a break in market structure at some point. And what the alert indicator is doing is telling you when that happens. So your job when you get an alert from the indicator or from the dashboard is to look at your charts and see if you can identify a chart pattern playing out. If so obviously we’ve got a valid signal there and we can enter into a trade. We can also use obviously other indicators as confluence to confirm that we think this is what is playing out but the problem with all of these chart patterns is as traders we tend to see them after they’ve happened and that causes us to get into trades too late which means that we start chasing a trade and therefore we don’t get a decent risk reward ratio or make a profit out of that trade a lot of the time. So the market reversal alert indicator you will find will send you alerts and you’ll be able to spot these alerts at particular points in these chart patterns.
What you will find is on these chart patterns, the signal you get from the market reversal alert indicator will happen at either the peak of the top of a double top, or it will happen after the second leg of the double top has been put in. Okay, so let’s look at my favorite pattern of all, which is the double top or the double bottom. It’s the same thing. I’m only going to talk about double tops because basically the double bottom is it upside down. So with the double top, we’ve got a normal double top, as you can see on the screen here, which basically has both of the peaks at roughly the same level.
These can quite often be to the pip. So price will push up, it will make a new high and then it will pull back to make a low, push up again and then it will hit virtually the same price at the high and then pull back down again. What we’re looking for with these double tops is for price to then break back down below the neckline which gives us our entry. And the market reversal alerts indicator will give you alerts when you can see these forming and quite often as I say on the second leg is when you’ll get an alert when that second leg break below the neckline actually happens. So these are fantastic opportunities to take with the indicator. There’s two other types of double top which people tend to class as M and W patterns for obvious reasons. They look like M’s and they look like W’s. But you get uneven versions of these as well. So you have the second leg sometimes being extended where price will put in a slightly higher high and then it will continue to move to the downside.
With those ones you will get a market reversal alert definitely on the second leg because when it puts in a new high we’ll have a new supporting rectangle drawn which will then get broken and alerted. You can also get these where we have the second high being slightly lower than the first high and in that case obviously you would have got the alert on the first leg and then the second leg will typically quite often be the retest so you’ll get a retest alert quite often on a second leg from the from the market structure reversal alert indicator. So that’s basically my favorite pattern and you will see these playing out all over your charts so if you go and have a look at your charts now, open up any time frame, you’ll see these all over the place. And these can play out over a period of a few minutes on lower time frames, they play out on hourly charts, daily charts, over multiple days, multiple weeks, you know, they play out absolutely everywhere. But they are the key market reversal pattern. So keep an eye out for these patterns. And when you see market reversal alert is being given by the indicator. This is the first thing I look for Is there a clear M or W or double top double bottom visible on my chart if so jump straight in?
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