Ross Hook pattern (simple) explanation using Bank Nifty D Chart
Ross Hook pattern (simple) explanation using Bank Nifty Daily chart :
We tried to explain Ross Hook pattern in a very simple way here taking Bank Nifty Daily chart as example.
Ross Hook pattern can be termed as an extension/correction/advancement (as per me) to 1-2-3 pattern. The difference which can be noticed is hook kind of formation after point 3 where there can be couple of small candles which are formed to give a confirmation for momentum or price action. These small candle formation are termed as hook in simple terms and any upside (Bull pattern) or downside (Bear pattern) movement from these candle sticks will give good momentum and good risk reward. SL need to placed just below/above these small candles as per Bull/Bear formation respectively. Entry just above the candles/below the candles for Bull/Bear formation respectively and exit can be planned with a risk reward ratio of 1:2,3,4,5.
In the given chart there are 4 Bull patterns (A,C,D,E) AND 1 Bear pattern (B) for your reference. For confluence the entry points need to looked along with RSI/MACD/Bollinger bands etc. Identification of hook is the key in this strategy. Once it is identified then the RR can be very good. Please do a back testing to identify these hooks so to get a good hold of understanding. Also ample time will be there when we notice these hook formation candles to make entries. Please do not get into entries with long candles formation as it might not be hook formation and we should avoid those entry points. SL is the key and it should be smaller, if this is kept in mind then identification of hook formation in candles can be easily identified. Some times point 3 can also be used for SL but we avoid taking that huge risk and want to move out when our analysis is wrong or the trend is in our opposite direction of our thought process with a small SL. Market gives us abundant opportunities and its believed that for every 8 minutes there would be an opportunity for every one to enter. Hence identify only those trends with small SL opportunity for planning an entry.
This strategy works for all time formats and please remember identification of SL (which should be small) is the key (reiterating again) and will lead us to entry and exit points.
Disclaimer : This analysis is only for educational purpose and not be considered as any trading idea/tip. Please consult your financial advisor before you take any trade and we are no way responsible for your profits/losses. Thank you!
Please do like and share this idea. Thanks
We tried to explain Ross Hook pattern in a very simple way here taking Bank Nifty Daily chart as example.
Ross Hook pattern can be termed as an extension/correction/advancement (as per me) to 1-2-3 pattern. The difference which can be noticed is hook kind of formation after point 3 where there can be couple of small candles which are formed to give a confirmation for momentum or price action. These small candle formation are termed as hook in simple terms and any upside (Bull pattern) or downside (Bear pattern) movement from these candle sticks will give good momentum and good risk reward. SL need to placed just below/above these small candles as per Bull/Bear formation respectively. Entry just above the candles/below the candles for Bull/Bear formation respectively and exit can be planned with a risk reward ratio of 1:2,3,4,5.
In the given chart there are 4 Bull patterns (A,C,D,E) AND 1 Bear pattern (B) for your reference. For confluence the entry points need to looked along with RSI/MACD/Bollinger bands etc. Identification of hook is the key in this strategy. Once it is identified then the RR can be very good. Please do a back testing to identify these hooks so to get a good hold of understanding. Also ample time will be there when we notice these hook formation candles to make entries. Please do not get into entries with long candles formation as it might not be hook formation and we should avoid those entry points. SL is the key and it should be smaller, if this is kept in mind then identification of hook formation in candles can be easily identified. Some times point 3 can also be used for SL but we avoid taking that huge risk and want to move out when our analysis is wrong or the trend is in our opposite direction of our thought process with a small SL. Market gives us abundant opportunities and its believed that for every 8 minutes there would be an opportunity for every one to enter. Hence identify only those trends with small SL opportunity for planning an entry.
This strategy works for all time formats and please remember identification of SL (which should be small) is the key (reiterating again) and will lead us to entry and exit points.
Disclaimer : This analysis is only for educational purpose and not be considered as any trading idea/tip. Please consult your financial advisor before you take any trade and we are no way responsible for your profits/losses. Thank you!
Please do like and share this idea. Thanks
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