Pricebroketheresistancethenreversedbacktotestthatresistance,youcouldseetherejected

candlewiththewicktellingyoutheretestwassuccessfulandpriceisgoingtoshootupandwe
canseeclearlyitwentupaftertheretest.Ithereforewouldalwayssuggestthat,aftera
breakout,thereshouldbearetestbeforeenteringthemarketortakinganytrade.Enteringthe
marketaggressivelyisnotadvised,alwayswaitfortheopportunitiestocome.Thatishowthe
marketworks.Alwayswaitfortherightopportunitiesotherthanforcingthem.Immediatelyit
gotrejected,wequicklyBUY.

SIMPLECHARTPATTERNS

Therearelotsofchartpatternsinthemarket,howeverwewillbespecificallylookingatchart
patternsthatworkspecificallyonvolatility75index.

1.HeadandashoulderPattern
2.DoubleTop(Mpattern)andDoubleBottom(Wpattern)

3.TrippleTopandTrippleBottom

4.Triangles

Wewillelaborateeachofthemspecificallyanddetailed.

HEADANDSHOULDERSPATTERN

Takethehumanbodyforexample.Picturetheheadofahumanwithitsshoulders,youwill
noticethattheheadofahumanbodyisabovetheshoulderandtheshouldersareinthesame
linewitheachotherevenifitstilted.Nowlet’sseethepicturebelow.

Lookingatthepatternabove,wehaveourheadand
shoulderspattern,theRIGHTSHOULDERandtheLEFTSHOULDER,lookingattheimagebelow
ishowwearenamingitornamed.Theleftshoulderandrightshoulder.

Let’stakethisscenario.PricemovedfromasupportuptocreateapointAandthenmoved
downtothesupportandralliedupagaintopointA,andbroketheresistancetocreateapointB
andcamedownonthatsamesupport,thenitwentuptocreateapointCandmovedandthen
ralliedbackuptothesupport,thisisapatterntellingusthatmarketislikelytobreakthe
supportandmoveddown.Thecommonsupportonwhichthepricesreverseiscalleda
NECKLINE.Whenyoutakeyourhumanbody,thetwoshouldersareconnectedtotheneck.So
weareusingthesamescenario.Unlikecurrencypairsthatwesellonlyafterbreakout,wecan
sellimmediatelyontherightshoulderwhenitcomestovix75orwaittillitbreaksthenecklineto
giveyourealconfirmationsofthetrend.

Let’stakearealchartanalysistodevisetheexplanation

OnesmartanalyticsisthatheadandshouldersworkverywellonM1andM5

NowlookingatthischartyYoucouldnoticethepatternandthebreakout,nowwatchtheentry
level,whereIhavemarkettheshortyellowline,belowtheneckline,whenpricebreaksthe
channel,itmustclosebelowthenecklineanditmustbebearish,rightafteritbreaksitand
closesbearishbelowtheneckline,youwillSELL.Unlikecurrencypairs,afterthebreakout,it
needstoretestbacktotheneckline,butinmostcasesofvolatility75,itdoesnotretest,afterit
breaksallyoudoistosellandtakeyourprofithasdesired.

Let’stakeanotherexample
Thisisalsoheadandshoulderbutaninverseform,whenImeaninverseform,Imeanit’supside
downunlikethefirstone.Sowesawpricebreakingthroughtheneckline,immediatelyitbreaks
fromthenecklinewecanBUY.Withheadandshoulders,becauseitisseenmostlyonm5and
m15,youhardlyseeretestunlikewhenitsseenonceawhileonhighertimeframeswhichin
somecasesmightneedalittlebitofretest.Therefore,immediatelyitbreakfromtheneckline,
yousellorbuydependingonhowithasbeenformed.
DOUBLETOPSANDBOTTOMS(THEMandWSHAPEPATTERN)

DOUBLETOP

Bynowaftergettingtothispointwehaveanideaofhowsupportandresistanceworks.

DoubleTopmeanstwothereforeinthisscenariowesimplylookupoftworesistancepointsso
wesimplySELLonthesecondpoint.Inthispattern,wearelookingfortwocommonandclose
resistancethatareonthesamepointinlineoralmostinline.Itdoesn’tnecessarilymeansit
shouldalwaysbeaperfectstraightline.
 EXPLANATION-Likewesaidbefore,double
topismadeuptwoCLOSEresistanceandI’mgladwecanspotresistancenow.Takenoteof
thetermused.Tworesistancethatareclosetoeachother.Whenyouspotthispatternandyou
seeitfalling,wehavetobeawarethatitwillsellmassivelyandbreaktheneckline.Nowwecan
enterthistradesintwoways,Firstofallwecansellimmediatelyonthesecondtopafterithas
beenrejected.Wecanalsosellafteritbreaksthenecklineandjustalittleorminorretest.As youcanseeitslikeM.

Let’stakeacharttoexplainfurther,

Withthischart,Iwilluseasmallerchartforabetteranalysis
Sonowlet’slookatthechartabove,theredresistancewespottedabove,youcouldseehow
pricebrokerallieddownafterformingtheMshapewithalittleretestIhaveindicatedshaded
white.SoIcouldenterthistradeintwoways.

1.IcansellonceIspotarejectedcandleandabearishengulfingcandleonthesecond resistance.

2.Icanalsosellafteritbreaksthenecklineimmediatelyorwaitforittoretestalittle.

DOUBLEBOTTOM(THEWSHAPE)

Doublebottomisjusttheinverseofdoubletop.TheonlydifferenceisthisisaWshape.Apart
fromthat,theyperformthesamefunction.

Nowwiththis,youlookfortwoclosesupportareastotriggerabuy.
Nowlet’slookatthechartcarefully,afterspottingtherejectedcandlefollowedbyabullish
engulfingcandle,IwillimmediatelyBUYonthesecondpointofthesup[ortORwecanwaitfor
pricetogettotheneckline,breakitandcloseabovethenecklineforustoenterourBUY immediately.

Let’slookatthisimagealso
Bylookingatthechartabove,wecouldexplainwhatactuallyhappenedusingthesamescenario.

YouBUYimmediatelyonthesecondsupportorwaitforpricetobreaktheneckline.

SUMMARY

Indoubletopsandbottoms,it’sgoodtotradeinallframes,itisalwaysclearonh1timeframe,
fortimeframeslikeM5andM15,mostattimepricedoesnotgettothesecondtouchsoit’s
goodtoexecutethetradeafteritbreaksthetrendline.

Inadditiontothis,watchorforfakeoutsontheneckline,now,tothecompletetheMpattern,it
mustbreakthenecklineandmoveupwardbutonceitgetstotheneckline,themarketbehaves
insuchawaythatitwillberejectedandmovedown,it’sasimplefakeout,itretracesalittleand furthermoveupward

TRIPPLETOPANDTRIPPLEBOTTOM

Justlikewesawdoublemeans2sowelookedfortwocommonresistance.Inthiscase,weare
dealingwithtripletops.Tripleaswegenerallyknowmeans3thereforeinthiscase,weare
lookingfor3commonresistancepointsofprice.Meansthatwearelookingfor3touchesona resistance.
Lookingattheimageabovewehadthreetouchesontheresistancethatpricetouched,sowe
waitforthebreakoutonthesupportlevelafterthetouchthirdontheresistance.Itisnotgood
totradeonthethirdresistanceorsellonthatpoint,rememberwhenwewerediscussingon
supportandresistance,Ididsayit’sgoodtotradeonthe2ndtouch,Sooncewespotthiskindof
pattern,wewaitforpricetobreakthesupportandRETEST,beforewesell.InthisPatternofthe
tripletop,theRETESTisveryimportant.
Let’sanalyzethechartbelow

Lookingatthechartabove,wehad3commontouchesontheresistanceleveltellingusthat
wasatripletopthereforetheremightbeabreakoutonthesupport.Rememberit’snotgoodto
sellonthethirdtouch.Youalwayssellafterbreakoutofthenecklineandretest,wecanseea
clearretestontheyellowboxafterthebreakout.Afterthatretestandweseeapinbarcandle
rejectionandacandlesuchasabearishengulfingcandle,wesellimmediately.Wecouldsee
howpricerallieddownaftertheretestandwasrejected.

TRIPPLEBOTTOM
Justlikewesawdoublemeans2sowelookedfortcommonsupportareas.Inthiscase,weare
dealingwithtriplebottoms.Tripleaswegenerallyknowmeans3thereforeinthiscase,weare
lookingfor3commonsupportspointsofprice.Meansthatwearelookingfor3touchesona support.

Lookingatthispicture,wecouldseethat,withtriplebottoms,weareexpectingabreakout above.
Let’stakearealchartandanalyze.

Lookatthechartbelow,wehad3touchesonthesupportandwecouldseeafterthebreakout,
priceretestedbeforeitfinallywentup.Aftertheretest,weBUYandplaceourorder.

WHATMAKESABREAKOUTVALID?

1.Ifit’sabreaksoutaboveoraresistance,thecandlemustbebullishandmustclosea
littlefartherabovetheresistance.Aftertheclose,letitretestonbackonthatresistance
andrejectedonthatlevelthatwillconfirmthebreakoutresistance.
 2.Ifit’sabreaksoutbeloworasupport,thecandlemustbebearishandmustclosealittle
fartherbelowthesupport.Aftertheclose,letitretestonbackonthatsupportandget
rejectedonthatlevelthatwillconfirmthebreakoutofthesupport.

TRIANGLES
Thereaedifferentformsoftrianglestradedinthegeneralmarket.Howeverwewillbelookingat
twospecifictrianglesthatworkonvolatility75index.

1.DESCENDINGTRIANGL

Descendingtrianglesaretrianglesthathasasupportpointsofcandlesconnectedtoatrendline
tocreatepattern.Let’sseetheimagebelow

Lookingattheimageabove,Iguesswehaveanideaofhowitlooksnow,nowweknowhowto
drawsupportline,sowelookforseveralpointsortouchesofasupportthenwelookfor
commontouchesofanuppertrendlinethatisclosetothesupportforustojointhislinestoget ourpattern.

Let’sanalyzethechartabove,wehadasupportandatrendlineaswesawinthechart,Now
afterspottingthispoints,itdoesdoesnotmatterthenumberoftouches.Wearemore
interestedinthebreakoutandnextmove.
Anotherimportantthingtoalsonoteisthis,wearesayingthepatterniscalledadescending
triangleandanythingdescendingmeansgoingdown,thereforethepatterniscommunicationto
usthattherewouldbeabreakoutbelowandnotabovesowewillbelookingformore
breakoutsonthesupportlevel.Afterabreakoutofthesupport,thepatternneedsaretestof
thesupportlevelafterthebreakout.Rememberthisisapatternandthereforearetestis
needed.Afteraretesthasbeenmadeandrejected,wecanplaceourSELL.Therearesituations
wherethepricewillbreakaboveforabuy,Iwouldliketourgeyounottoexecutesuchtradeas
abuyincaseofsuchoccurrence.WearemoreinterestedinthebreakoutbelowforaSELL.

ASCENDINGTRAINGLE

Descendingtrianglesaretrianglesthatalsohasaconnectedresistanceandalowertrendline.
Getthedifference.AscendingtrianglehasaRESISTANCEandalowertrendlinewhilea
DescendingtrianglehasaSUPPORTandanuppertrendline.Let’smoveonwithascending
triangle.Inthispattern,weconnectthepointsofaresistanceandatrendlinethatarealsoclose
toeachother.Let’swatchtheimagebelow

Lookingattheimageabovewecouldnoteithasalowertrendlineandaresistance.

Let’sanalyzeachart
Lookingatthepattern,youcouldseetheblueboxasourresistancezonesandthelowertrend
linewithourpointsorzones(redbox).

Let’sseehowtotradethisafterconnectingthepatternorspottingthem.Rememberthe
numberoftouchesdoesnotmatter.Weareinterestedinthebreakouttomakeanentry.Asthe
namesounds,ascendingwhichmeanssomethingwhichmovesup,thereforeweareinterested
inabreakoutaboveforaBUY.Thereforeafterseveraltouchesandthereisabreakout,wewait
foraretestbacktotheresistancelineandgetrejectedbyapinbar,thenweplaceourBUYorder,
JustasIstatedabove,insomeoccurrencesitmaybreakbelowinsteadofabovehoweverIwill
urgeyoutolookformorebreakoutsaboveratherthanbelow.

TradingChartPatternsarealsoeffectiveandvisibleontheM5andM15timeframe.Always
waitforabreakoutandaretestbeforemakinganentry.

FIBONACCIRETRACEMENTTOOL

Themarketisfullofupsanddownscommonlyknownasretracements.Retracementsare
boundtohappenandit’swhatdifferentiateanemotionaltraderandapatienttrader.Whenyou
seeamarketmoving,themarketdoesnotmoveinthesamedirection.Itfluctuatesandmoves
withretracementsbecauseitismadeupofbothbullsandbears.(Sellersandbuyers.)Thisisa
forextem.Theybuyersinthemarketarecalledbearswhilethesellersarecalledbears.Moving
ontotheFibonaccitool,weuseFibonaccitoolafterazonesuchasasupportandresistance
hasbeencreatedandthenpricebouncesofthatzone.Youwouldnoticethat,anytimeprice
getstoasupportoraresistancezoneanditbounces,itgoesordownalittlebeforecontinuing
thetrend.Fibonacciismadeupofsomeimportantnumbers,thesenumberserveassupport
andresistanceareaswherepriceturnstoreverseaftergettingtothosepoints.Thenumbersare
23.6,38.2,50.0and61.8.Wewilllookatthespecificnumbersthatworkonvix75whichisthe
Fibonacci50.0and61.8.Nowitactuallyhelpsyoutoenteratradewhenyouarelatebecause
youknowthatinthemarketretracementsareboundtohappen.
HowtoaddFibonaccitool.

1.Selecttheiconwhereyouhaveyourtools,wherewenormallyselectthelinestomarkup ourcharts.

2.Selectthe+signandlookforFibonacciretracementandselectit.

Let’sanalyzeacharttosimplifythis

Lookingatthechartabove,wecanseethatpricewasonaresistancelevel.Nowwhathappens
isthatafterpricehitstheresistanceandralliesdown,itislikelytoreversebackbeforeit
continuesthetrendsowhatyouwillisthat,immediatelyyouseeitreversingbackorretracing,
takeyourFibonacciretracementtoolanddrawfromwherethepricetouchesontheresistance
andstartedfalling,andconnectittowherepricestartedreversing,nowwatchthelongblueline,
thatwaswherepricereversedfromtheresistancezone,sowhatwedois,wedrawthe
Fibonaccifromtheresistancetothezonethepricereversed.

TakeNote-Youdrawfromuptodownandnotdowntoup.

AfterdrawingyourFibonaccilevel,wewaitforpricetotouchtwoofthemostimportant
Fibonaccilevels,fib61.8and50.0afterwhichwelookforpinbarfromanyofthetwozonesto
getrejected.Lookingatthechartabove,youwouldnoticethattherewasapinbaronlevel61.8
andgotrejectedafterwhichpricereversedfromthatzoneandmovebackdown.

Let’sanalyzeanotherchart
Lookingatthesupportlevel,wesawthepricegoingupfromthesupportlevelaftergoingup,we
couldnoticeitretracedandstartedfalling,sowetakeourFibonaccilevelanddrawfromthe
supportleveltowherethepricestartedreversing.Nowwecouldseeapinbaronthefib50.0
levelandpricereversedbacktocontinuemovingup.WeuseFibonacciwhenthegeneraltrend
ofthemarketisstrongandalongthemovement,itretracesinandoutalongthemovement,its
besttousetheFibonaccilevel,mostattimeswesaybadentryisnotgood.Yesit’snot,however
theFibonaccitoolisgoodfortheentryoftheselateentries.

Nowtakethedifferencebetweenthetwo

WhendrawingFibonaccionuppertrend,youdrawfromthesupporttothepointofreversal (downtothetop-
supporttothepointofreversal)

WhendrawingFibonaccionalowertrend,youdrawfromtheresistancetothepointofreversal (Toptodown-
Resistancetothepointofreversal).

PINBARS

ThePinbarisaveryimportantcandlethatuseslotsofpricetoconfirmthereversaloftrend.

Therearetwopinbars.

Bullishpinbarsandbearishpinbars
Let’srefertoachart

Bullishandbearishpinbarsarestrongreversalcandles.Itismadeupofashortbodywith
longerwicks.Whenyouseeabullishpinbaronasupport,itmeanspriceislikelytoreverseand
BUYsowhathappensisthatyoucouldbuyafteryouseeabullishpinbarrejectedonthe support.

Bullishpinbarshappensoroccursonasupportlevelorlowertrendlineandtheysignifythat
priceislikelytoreverseforabuywhenwespotit.Soimmediatelyweseesuchcandleonthe
supportlevelwebuy.However,thistwocandlescansometimesoccureitheronthesupportor
resistancelevelbutthebothperformthesamefunctiontellingusthatmarketislikelytoreverse.
Lookingattheimageabove,wecouldseeabullishpinbaronthesupportline,weknowthat
whenweareonasupportline,wewouldbuy,howeverthebullishpinbarwouldgiveusanextra
confirmationthatpricewouldactuallybuysoimmediatelyweputupourBUYorder.

Let’srefertoanotherchart

Thisisalsoatrendline,wecouldalsoseeseveralpinbarsrejectedonthetrendlineconfirming
thatthemarketorpriceisactuallypushingupsoaftersuchcandle,wecaneasilyplaceourbuy order.

BEARISHPINBARS

Thisarealsopinbarsthathappenontheresistancelineandindicatesthatpriceislikelytofall.
Takingtheimageabove,youcouldseeabearishpinbarontheresistance,sowecould
immediatelySELLoncewespotthecandleontheresistancetellinguspricewouldfall.

Sample2

Wecouldalsoseeabearishpinbarontheupperresistancelineindicatingpricewouldfall.

Rememberpinbarsmayoccurbothonasupportoraresistance,onceyouspotthiscandleson
thesupportorresistance,onemustknowthatreversalislikelytooccur.

IMPORTANTTIPSONVIX75INDEX

1.RETESTisalwaysandverynecessaryinCHARTPATTERNSBREAKOUTS

2.ThirdtouchesonResistanceandsupportlinesarelikelytobreak.
3.Secondtouchesonaresistanceandasupportholdveryoften.

4.Duringconsolidationsitisalwaysgoodtoenterthemarketafterbreakoutswithoutany
retest.Afteraconsolidationbreakout,themarketmoveswithmassivepips

5.ItisgoodtotradesupportandresistanceonM15becausetherewillbemoreofthis
levelsinthemarketwhileyouusetimeframeslikeh1andh4fortheupperhandofthe positionofthemarket.

6.ChartpatternsarevisiblyseenonM5andM15

7.Whenevertherearepinbarsonasupportorresistance,marketusuallyreverses.

8.Duringweekends,manipulationsalwayshappenandit’sadvisabletoonlyexecutea
tradewhenthemarkethasaclearerdirection.
 9.Mostoften,anytimepricegetsuntoazone,itconsolidatesforawhilebeforeitmoves,
thisactuallyisalsoanimportanttipthatpricewouldmovefromthatsupportor resistancezone.

10.Don’tforcetrades.Lettheopportunitiescometoexecutethetrade.

SUMMARY

Onemaysaywhichstrategyworksverywellonvix75index,Itookmytimetoexplainfive
powerfulstrategiesthatshowsupalongthemarket.Amongthestrategiesshownwiththeir
techniquesaseachofthestrategiesworkindependentlyontheirown,atradermaychooseto;

1.Tradesupportandresistanceonly

2.Anothertradermightalsochoosetotradeonlychannelbreakouts

3.Othersmayalsochoosetotradetrianglesandretestlevelsonly…etc

Butsincethemarketdoesnotmoveinonlysupportandresistanceonlyortrianglesonlyor
breakoutsonly,itisgoodtolearnallandharmonizethembecauseatonepointortheotherwe
wouldcomeacrosseachofthestrategyexplained,howeveronemayalsosticktoonestrategy andperfectit.

Iwishthisbookhasimpactedgreatlyonyourknowledgeandimportanttipsintradingvix75and
makinganyreaderaprofitabletraderafterreadingthisbook.

TelegramChannel-https://t.me/joinchat/AAAAAFKbg1zYpPcORT2PEQ
Admin’stelegramname/Writer-https://t.me/Adjei_vix75