Trading on Forex is often based on the use of harmonious formations. Their essence is in the use of indicators that identify patterns repeated on the chart of the selected asset. One of such tools, which allows predicting the reversals of the trend on time, is the ZUP indicator or the Gartley pattern.
Trading the Gartley pattern
The ZUP indicator is easily downloaded and installed according to the Avatrade customer review. After a reboot, it appears in the Navigator window. By clicking on the left mouse button, the tool is transferred to the chart of the selected asset. The indicator has several dozen settings and a very complex calculation algorithm. The result is a highlight in the terminal window of various Gartley patterns.
The figure is formed at the most extreme point of the price rollback. Visually having such information, investors can pre-set a pending order for purchase or sale and open a deal at the reversal point in time.
The formation of the color zone of the pattern on the chart is accompanied by the appearance of a red rectangle with lines of blue and yellow colors. The boundaries of the rectangle represent the region, in which the model is working correctly. The lines inside it are corrective Fibonacci levels. Signals are considered from them. Trading is conducted on a breakdown or rebound from levels.
In some cases, the emerging wing of the pattern quickly overcomes the red rectangle. Thus, the indicator shows that it is impossible to properly work out the model.
A characteristic feature of the indicator is the forecasting of long-term price reversals. Traders, setting pending orders, can set quite large targets.