Dear Friends ,In technical analysis there are particular patterns, that is, of particular formations that can greatly help the trader to analyze the market and to take advantage of particular price movements that are almost discounted. In technical analysis there are numerous formations that indicate a trend reversal or simply indicate a continuation of the predominant trend. The training we take is instead indicating an inversion of a trend, which in this case belongs to a correction phase.
Pattern 123 is a very simple pattern to be found in market stages where the price touches a support area and a resistance area and then returns to the bouncing resistance. The signal is then given by the passage of the price beyond step 2. From the figure you can better understand how easy it is to locate that pattern.
The pattern you see can be exploited either through traditional investments or through investment in binary options, in the case of investments in binary options, the investment must take place after the zone break 2 confirms that it acts as a trading signal. At the break of this area you can proceed with the investment taking into account the time frame of the graph used.
If the signal was found in an M5 timeframe, ie, where each trading session lasts 5 minutes, then you can invest in binary options with a 5-10 minute maturity.
Every trading signal that comes from graphic analysis is probable, but never certain, so you do not have to invest a large percentage of capital.
Always remember that trading is based on strategies and signals that are statistically probable and also capital must necessarily be managed this way, that is, it must be managed considering that it is based on probabilities.
Always invest a share of less than 5% of the total amount you’ve deposited on your trading account,in case your investment fails, you will not invest too much capital and you can continue Your trading activity quietly.