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Double Bottom Patterns

Double Bottom Continuation Pattern EURHUF

Double Bottom Continuation Pattern EURHUF

Double Bottom Continuation Pattern EURHUF is the continuation of the wider Double Bottom Continuation Pattern on EURHUF on daily chart.

The premise

Let’s take a look at the daily chart on EURHUF. Therefore we’ll see that there is a nice and clear uptrend. So, if we take an even closer look we’ll see that there is a wider Double Bottom Continuation Pattern on EURHUF which morphed into a smaller double bottom continuation pattern. It is this second pattern which we’ll discuss now. If you are interested to read about the wider pattern, all you have to do is to click on one of the previous links from this article or simply click here.

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Double bottom continuation pattern EURHUF daily chart – detail

How did I trade the continuation pattern on EURHUF

This is a classical chart pattern with a horizontal resistance. Also it is a right angled pattern. Therefore, I placed my buy stop order slightly above the resistance. In this case the resistance is the February 28th 2020 daily candle high. Consequently, my order is open on March 16th 2020.

The outcome

Now that we know the entire situation, let’s see the outcome of this trade. So, just take a closer look of the chart from below and see for yourself. For me, this is one of the most beautiful trades from the past years. It is a very unexpected result in such a short time. Consequently, the trade took off in the same day in which I placed my order.

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The outcome of the double bottom continuation pattern EURHUF daily chart

The conclusion of the double bottom continuation pattern on EURHUF

Here we have a conclusion for both trades from EURHUF. So, the most important thing here is to keep an eye on the charts of the losing trades. And that’s because most of the time, the initial patterns tend to morph into another patterns which will result in great breakouts. Therefore, if you take a loss and move on and don’t trade the next breakout you’ll end up only with losses.

The trade management

It is also important to find an edge into the risk reward ratio. For example in this case I had a 1:2 risk reward ratio. So, this means that I am in profit with both of the trades from EURHUF so far. That’s because the first trade end up with a loss and this second trade end up as a win. But, in the first trade I risked 0.5% from my equity and I lost it. Now, I risked another 0.5% and I got back 1%. That 0.5% profit. Basically this is the way the trading works and we need to get used with it.

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