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Daily Trading Opportunity: Forming Peak pattern in price

Forming a Peak pattern in price is one of the most successful forecasting patterns for anticipating price decreases. 4CastMachine software studies and discovers forming Peak pattern in the price in all charts. As a result, we can rapidly and easily pay attention to just the charts in which an important decrease is occurring and where a very good trading opportunity has been set.

negative numbers in Peak/Valley(Trough) show a Peak forming. Strengths of Peaks are between zero to about -100: the closer number to -100 the greater strength. As the strength of each pattern directly related to the probability of its success, it is better to collect the ones which have more strength.

A good trading opportunity: Forming a Peak Pattern

By forming a Peak in Daily Charts, the probability of the price decreasing more - tomorrow and after that - is very high, so we can enter the market by selling trades.

Forming Peak on NZDUSD

Example:

Considering the front image, 4CastMachine shows a strong Peak for NZD/USD pair on 2014.07.16 forming.

Strength of Peak is -33.

 

Performance of Forming Peak on NZDUSD

Performance of sell trade:

As seen in the front image, the selling trade produced more than 1050 pips profit.

 

In many cases, however, great decreases happen after forming a price Peak as the sign of falling, so it is better to consider other technical reasons to support the guess of price falling and then think about making a trade. If Peak forming is accompanied with a downtrend or it is in a resistance area, there will be a very good trading chance.

A very good trading opportunity: Forming a Peak in a Downtrend

Formation of a new Peak in a downtrend shows that a new falling wave is starting and downtrend is resuming. So, a Peak forming in a downtrend is a very successful trading opportunity.

Forming Peak on GBPUSD Downtrend

Example:

Considering the front image, 4CastMachine shows a strong downtrend and a strong Peak forming for GBP/USD Pair on 2013.02.02.

Strength of Downtrend is -25.

Strength of Peak is -57.

 

Performance of Forming Peak on GBPUSD Downtrend

Performance of sell trade:

As seen in the front image, the selling trade produced more than 850 pips profit.

 

A very good trading opportunity: Forming a Peak in a Resistance area

The most important technical factor which prevents the price from increasing more and causes it’s falling to resume, is a resistance area. If a Peak formed after price bounced from resistance area, selling trades have a high probability success.

Forming Peak on EURJPY Resistance

Example:

Considering the front image, 4CastMachine shows a strong Peak pattern after price bounced from 110.75 resistance level for EUR/JPY Pair on 2012.03.30.

Strength of Peak is -46.

 

Performance of Forming Peak on EURJPY Resistance

Performance of sell trade:

As seen in the front image, the selling trade produced more than 1400 pips profit.