Railway track forex pattern

Railway track forex pattern

Railway Tracks pattern. The Railway Tracks pattern occurred in USD/CHF ’s chart three times in autumn. At the beginning and at the end of September, it produced a clear signal that the correction of the current ascending trend was exhausting quickly. The bears were weak and unable to start a full-blown blogger.comted Reading Time: 4 mins The railway track is only applicable when you are in a trend as it is a reversal pattern. If you see this formation when the market is moving sideways, you should ignore it as it does not have any value. Timeframes: 1hr and larger. Forex Indicators: Nil. TRADING RULES (Refer to the chart above). For buying: After a bullish railroad track pattern forms, place a buy stop anywhere from pips above the high of the blogger.comted Reading Time: 2 mins 09/03/ · Anyway, with the railway pattern ideally the candles should have a big body and both candles should be as close to each other in size as possible. So if the market is going up we are looking for a reversal going down. We can also look at continuation but the best setups are when the market is going one way and the pattern signals a reversal

Railway tracks - efficient Forex pattern | Liteforex

Overlooked in favour of more popular patterns by most traders, the railroad tracks is a simple reversal pattern that forms frequently in the forex market.

Its appearance is a high probability signal price could be about to reverse, and you can use it in a whole bunch of useful ways. With how overlooked the railroad tracks is, I thought today would be a good opportunity to detail how it works, so you can start using it in your own trading. The railroad tracks is a simple two-candle reversal pattern that typically forms at the end of trends or large swings.

The pattern forms when price jumps sharply, creating a big candle, railway track forex pattern, but gets countered by an almost equally big candle that forms right after.

Side by side, these two candles look similar to railroad tracks, which is where the pattern gets its name, railway track forex pattern. Like most patterns, the railroad tracks comes in two variations:. The bullish railroad tracks is the bullish variant, signalling a reversal to the upside when it appears. This pattern forms when a strong bear candle is followed by an almost equally big bull candle that causes price to close near the open of the bear candle.

It shows the bears, who were in contralto of price, have had the momentum wrestled back from them by the bulls, making a reversal to the upside likely. For a bullish railroad tracks to be valid, it must have the following characteristics:. The bearish railroad tracks, as you might have guessed, railway track forex pattern, is the bearish variant of the pattern, railway track forex pattern.

Its formation indicates a possible reversal to the downside. The pattern is created when the bears overwhelm the momentum of the bulls, as shown by a strong bear candle cutting deep into the body of a larger bull candle. With the bears back in control, the chances of a reversal followed by a move lower are extremely high.

You can see this pattern signalled a reversal of the downtrend, resulting in a new uptrend beginning. So you need to combine it with other key technical points — like support and resistance levels, and supply and demand zones railway track forex pattern to really get a high probability signal the current trend or swing could be about to reverse and change direction. In terms of psychology, railway track forex pattern, the railroad tracks pattern shows the bulls or bears, after being into almost total control, have been blown away by the other side, revealing their true momentum.

The first candle in the pattern, which always shows railway track forex pattern sharp move, reveals the bulls are in total control. All the momentum is with them, which is why the candle is so big. This is always the opposite of the first candle and pushes price almost back to the open of the first candle.

It shows the other side bears in our case have entered the market with much more force momentum than the bulls. The bulls thought they had the upper hand when actually the bears had much more firepower in reserve. One way to rectify this is to watch for more patterns, and the railroad tracks is a great candidate for this. Because the pattern forms when one candle cuts deep into the previous candle, almost closing beyond it, the railroad tracks basically act like an engulfing pattern.

It shows the banks have entered the market and decided to buy or sell a large amount of currency, making a reversal likely to soon begin. Not long after railway track forex pattern railroad pattern forms, price reverses and starts rising. Its appearance acts as good confirmation the banks want price to reverse from the zone, giving you a great signal to enter a trade and get into the impending reversal.

Railroad patterns make great entry signals into supply and demand zones, but you can also use them to enter reversal trades at normal technical points, like support and resistance levels and Fibonacci retracements, railway track forex pattern.

See how this railroad pattern formed when price hit a major resistance level? The appearance of railway track forex pattern pattern tells us the banks could be selling because they want price to reverse. A few later, price reverses, confirming the pattern formed from the banks selling. With Fibonacci retracements, you can also use Railroad patterns as entry signals into pull-back trades, railway track forex pattern.

You draw a fib retracement on a pull-back, wait for price to return and touch the level — very important, then see if a bullish or bearish railroad pattern forms and signals a reversal. If everything works out, price should reverse and resume the prior trend. The stop on a railroad pattern trade always goes above the highest high of the two candlesticks for the bullish pattern.

For the bearish pattern, the stop must go below the lowest low of the two candles. They have their own rules for where the stop must go — either above or below the zone. If you put the stop above or below the candle inside the zone, price will usually break beyond, taking you out of the trade and causing a loss.

When it comes to taking profits… the choice is really up to you, railway track forex pattern. Any method will work fine, as long as it brings the risk down safely and securely.

All in all, the railroad pattern is one you MUST add to your price action arsenal. The Next Step? Learn The 5 Rules For Trading Supply Demand Like A PRO Trader Take your trading to the next level, railway track forex pattern. So, read to learn all about the powerful railroad tracks pattern?

Like most patterns, the railroad tracks comes in two variations: Bullish Railroad Tracks The bullish railroad tracks is the bullish variant, signalling a reversal to the upside when it appears. For a bullish railroad tracks to be valid, it must have the following characteristics: Two candles that form side by side; a bull candle followed by a bear candle Both candles must be of a similar length.

The 2nd Candle MUST NOT close higher than the first. Bearish Railroad Tracks The bearish railroad tracks, as you might have guessed, is the bearish variant of the pattern.

For a bullish railroad tracks to be valid, it must have the following characteristics: Two candles that form side by side; a bear candle followed by a bull candle Both candles must be of a similar length.

The 2nd Candle MUST NOT close lower than the first. The Psychology Behind The Railroad Tracks In terms of psychology, the railroad tracks pattern shows the bulls or bears, after being into almost total control, have been blown away by the other side, revealing their true momentum.

Then we get the second candle… This is always the opposite of the first candle railway track forex pattern pushes price almost back to the open of the first candle. The pattern tells us the banks have decided to buy. And what do you know… Not long after the railroad pattern forms, price reverses and starts rising.

Here are some examples… See how this railroad pattern formed when price hit a major resistance level? Stop Location And Taking Profits The stop on a railroad pattern trade always goes above the highest high of the two railway track forex pattern for the bullish pattern, railway track forex pattern. Summary All in all, the railroad pattern is one you MUST add to your price action arsenal. Sign Up. You May Also Like:. Supply And Demand Trading: The Definitive Guide PDF.

Don't Make This Mistake Drawing Supply And Demand Zones. The Total Beginners Railway track forex pattern To Trading Support And Resistance. Leave a Comment Cancel reply Comment Name Email Website. Learn More.

Live FOREX Trade - RailRoad Tracks - Candle Reversal Patterns

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Railway Tracks Chart Pattern Forex Trading Strategy

Railway track forex pattern. Track Stiffness • Rail is assumed to be a beam on an elastic foundation • Modulus of Track Elasticity, u (or k) (a.k.a. Track Modulus) u = P/Δ where u = Modulus of Track Elasticity (lbs/in/in) P = Wheel load per unit length of rail (lbs/in) Δ = Unit The railway track is only applicable when you are in a trend as it is a reversal pattern. If you see this formation when the market is moving sideways, you should ignore it as it does not have any value. Timeframes: 1hr and larger. Forex Indicators: Nil. TRADING RULES (Refer to the chart above). For buying: After a bullish railroad track pattern forms, place a buy stop anywhere from pips above the high of the blogger.comted Reading Time: 2 mins 15/01/ · The railway tracks pattern forex trading strategy is another price action trading strategy that is based on analyzing the lengths of two candlesticks of similar lengths and one of the candlestick must be bullish and the other one is blogger.com you see them together they look like railways tracks and thus the name There are two types of railway track pattern: bullish and blogger.comer the railway tracks