Forex Zone - Forex Forum

drop base drop strategy in Trading Systems_6825f0acc9f09

drop base drop strategy

Discussion started on Trading Systems

  • Hero Member
  • Posts: 5458
  • Points: 1753
  • Likes Received: 561
  • Reputation: +22/-18
The technique of using a base drop drop referred to here is the opposite of a rally base rally, generally this technique is used to mark the base demand zone for a buy signal if it returns to that area and we can open a position there



Linkback: https://www.forex.zone/trading-systems/10/drop-base-drop-strategy/3413/
#1 - July 01, 2021, 09:27:11 AM
Attachments:
« Last Edit: July 27, 2024, 09:53:11 PM by Admin »

  • Sr. Member
  • Posts: 365
  • Points: 624
  • Likes Received: 2
  • Reputation: +0/-0
for the first and second examples the moment is good but the third example the price pullback has not reached the base area, is the base still valid?
#2 - August 07, 2021, 02:56:29 AM

  • Sr. Member
  • Posts: 365
  • Points: 624
  • Likes Received: 2
  • Reputation: +0/-0
it's just a matter of being patient and careful, because the marking of the drop base drop area that is done manually must be really focused


#3 - August 11, 2021, 12:59:27 AM
Attachments:

  • Hero Member
  • Posts: 2167
  • Points: 2732
  • Likes Received: 3
  • Reputation: +0/-11
Drop base drop is a bearish chart pattern used in forex trading to identify potential trend reversals. Traders look for a series of lower highs and lower lows forming a "drop" pattern, followed by a period of consolidation or "base," and then another drop. This signals a potential continuation of the downward trend, and traders may use this pattern to plan their entry and exit strategies. However, like any trading strategy, it should be used in combination with other indicators and analysis to make informed decisions.
#4 - March 04, 2023, 11:32:47 PM

VIP
  • Hero Member
  • Posts: 20701
  • Points: 1781
  • Likes Received: 656
  • Reputation: +4/-0
A drop-down base typically forms when the price experiences a strong decline, then pauses and forms several small candles with a narrow range. This base reflects the moment when the market is rebalancing after an aggressive selling push. However, the halt in the decline does not indicate a trend change; it simply provides a pause that large market players typically use to replenish their positions.
#5 - November 28, 2025, 11:46:41 PM

Sponsored

drop base drop strategy in Trading Systems_6803a6c52eb12
#6 - Today at 05:13:20 PM

Members:

0 Members and 1 Guest are viewing this topic.



Kraken Crypto Trading