This is how it looks on the chart. It is not very widely known pattern, but it's very effective once You know how to use it. This is a variation of an inside bar setup. Before looking for this pattern there must be a support or resistance area, it is not valid signal if it is not at these areas. Ok, closer to the whole idea. First of all the inside bar has to form at support or resistance level. There can be more than one inside bar. Next thing that we would look for is a break below the low of…
Armands's Blog
Coin Flip Theory and Trading
What is a coin flip theory? When You flip a coin You know that there is only two possibilities - heads or tails. You have 50% chance that You will get it right. When You flip the coin 100 times You should get the same ratio or very close to that. You still know that you have 50% chance of being right. What You don't know is the sequence of the results. It won't be necessarily one time heads and one time tails. This is the important part of this theory that can be paralleled to trading. It is e…