Counting the legs of a trend candlesticks
When looking at the trend of any currency you will easily notice that the market prices doesn’t
just rise continuously if the trend is an uptrend or drop continuously downwards if the trend is downwards.
For any trend, there are some retracements along the trend. For example, if it is an uptrend you
will find out that there will be some downward retracements. And some other time, the market prices may
just oscillate between a certain range.
Now, before entering a trade anticipating the continuation of the market price swings, the trader
should know how to count the legs. A leg is a complete swing (uptrend and a down trend, where the
market prices move up from a specific price and then drops to around the same price as it was).
Taking note of the number of swings that have taken place is what is referred to as counting the legs of a trend.
Double top bear flags and double bottom bull flags candlesticks
Firstly, let’s consider a flag. A flag pattern consists of a large unpredictable upward
move (similar to a flag pole followed by a retracement downward in an almost 450 angle.
Then a measured move・breaks back to roughly equal the original flag pole portion.
Now, Double top bear flag is a flag that occurs during the progress of a bear trend,
where there are two swings with points up to almost the same level after which
the bear (downward) trend resumes. On the other hand a double bottom bull flag is a flag
that occurs during a bull trend, where there are two swings with points down to almost the same level,
after which the bull trend resumes.