Forex trading is a red product in the financial markets, which means investors may lose half or all of their funds during trading. This may be closer to speculative trading. However, there are various trading methods that traders apply to gain profits.
The most common and widely used strategy is learning how to trade on support and resistance. The support and resistance areas themselves are considered to be areas that prevent prices from moving further, in these areas rejection often occurs so that they are potential areas for gaining profits.
However, the different ways to determine support and resistance can make a difference in perspective when looking at support and resistance.
Several methods used to determine support and resistance refer to the FXOpen blog such as Trendline, closest swing points, round numbers, Fibonacci retracement, Pivot points, and dynamic lines such as using MA or Bollinger bands.
Apart from this strategy, it turns out there is also a unique strategy called Triple Gap or San-Ku. This term may or may not be Japanese. I just discovered this term in an FXOpen blog article.
Basically, San-ku is a triple gap or three gaps that have the potential to provide a reversal trading signal. This pattern is characterized by three candlesticks with gaps between one candlestick and the next candlestick in a row.
In my experience, this pattern rarely occurs during trading with FXOpen UK, I have never encountered a triple gap formation at one time. Most often you encounter a gap on Monday after the market opens.
However, if for example encounter a San-Ku or Triple Gap pattern, this may provide a strong reversal signal considering that the trend will have a peak
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