drop base drop strategy

Posts: 5458 · #1 - July 01, 2021, 09:27:11 AM

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/

Posts: 365 · #2 - August 07, 2021, 02:56:29 AM

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?

Posts: 365 · #3 - August 11, 2021, 12:59:27 AM

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

#4 - **Today** at 03:53:30 PM

Posts: 2167 · #4 - March 04, 2023, 11:32:47 PM

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.