With a plethora of trading patterns out there, the Pig’s Hoof Pattern is gradually gaining recognition. This article will cover everything you need to know about this pattern and how to apply it on eToro. Let’s dive in!
What is the Pig’s Hoof Pattern? 🐖
Table of content
- What is the Pig’s Hoof Pattern? 🐖
- Understanding RSI Divergence
- Bullish and Bearish Pig’s Hoof Patterns 📈📉
- Implementing the Pig’s Hoof Pattern on eToro
- Examples of Pig’s Hoof Patterns in eToro Trades
- Additional Conditions to Improve Accuracy
- 1. RSI Overbought and Oversold Signals
- 2. Establish Exit and Entry Points
- Conclusion: Patience and Decision-Making are Key
- eToro Trading Education: • Learn more about eToro Trading📝
- Trading Patterns:
- Portfolio Management:
- Trading Platform and Security:
- Fundamental Analysis:
- Disclaimer And General Risk Warning applicable and relevant to all platforms listed
- Author & Expert Trader - Financial Analyst:
The Pig’s Hoof Pattern resembles a pig’s hoof and indicates a trend reversal. It forms an “M” shape for bearish reversals and a “W” shape for bullish reversals. The pattern is established when the price touches the support or resistance level and bounces back, then touches the level again before another bounce and breakout.
Understanding RSI Divergence
RSI Divergence is essential to confirm the Pig’s Hoof Pattern. It occurs when the RSI line doesn’t align with the price movement direction. To identify RSI Divergence, draw a line connecting the peaks on the RSI chart and check if it has the same direction as the trend line from the price chart.
Bullish and Bearish Pig’s Hoof Patterns 📈📉
Both peaks of the pattern should touch a common trend line, while the bases touch a parallel trend line. The pattern is not time-sensitive and can form within 10-15 minutes. After verifying the pattern’s shape, check for RSI Divergence.
Implementing the Pig’s Hoof Pattern on eToro
To apply the Pig’s Hoof Pattern on eToro, look for its distinct “M” or “W” shape. Once you’ve identified the pattern, use eToro’s indicator settings to set up tools, periodicity, and other parameters like RSI. This will help you verify the RSI Divergence and understand the trend’s direction.
Examples of Pig’s Hoof Patterns in eToro Trades
Let’s explore some examples of the Pig’s Hoof Pattern in action:
- Tesla (Bullish Market): In this example, the pattern formed within a short consolidation under a volatile market. RSI Divergence is confirmed, and the trend moved upward after the pattern, resulting in a bullish market.
- NIO Inc. (Bearish Market): Here, the pattern formed after a steep price drop. The RSI line indicated a downward direction, and the trend continued to a bearish market after the pattern.
Additional Conditions to Improve Accuracy
Consider these additional conditions to enhance the Pig’s Hoof Pattern’s precision:
1. RSI Overbought and Oversold Signals
Use overbought and oversold signals from the RSI chart to improve accuracy. Generally, anything above 70 is considered overbought, while below 30 is considered oversold. Use these signals alongside the Pig’s Hoof Pattern to make better trading decisions.
2. Establish Exit and Entry Points
Since the Pig’s Hoof Pattern is often used for intraday trading, reacting quickly is crucial. Set clear exit and entry points to minimize risks and potential losses.
Conclusion: Patience and Decision-Making are Key
Although the Pig’s Hoof Pattern is relatively straightforward, finding it in fast-moving markets during intraday trading requires patience and quick decision-making. A solid understanding of this pattern, combined with well-planned entry and exit points, will help you make better trades on eToro.
Additionally, using a fast computer to monitor price changes and execute trades is beneficial, as it allows you to act promptly in response to market movements.
By mastering the Pig’s Hoof Pattern, you’ll be better equipped to navigate volatile markets in intraday trading. Apply this knowledge to your eToro demo account, and watch your trading skills improve. Good luck, and happy trading! 🚀
eToro Trading Education: • Learn more about eToro Trading📝
Trading Platform and Security:
- Fundamental Analysis on eToro
- Mastering Fundamental Analysis in Forex Trading
- What is Fundamental Analysis?
- Top 10 Fundamental Analysis Metrics
- How to Do Fundamental Analysis
- Financial Statements for Fundamental Analysis
- Earnings Per Share (EPS)
- Dividend Yields in Fundamental Analysis
- Calculating Intrinsic Value
- The Role of P/E Ratios
- The Impact of Interest Rates
- Fundamental Analysis to Pick Stocks
- Pros and Cons of Fundamental Analysis
- Fundamental Analysis to Successful Investment
Disclaimer And General Risk Warning applicable and relevant to all platforms listed
- ► The information provided should not be seen as financial advice and is only intended for entertainment and informational purposes.
- ► Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.
- ► Financial asset providers listed offer a variety of financial products and services, including Stocks, Crypto assets, and CFDs.
- ► CFDs are complex instruments with high risk due to leverage. In fact a 76% to 86% of retail investor accounts lose money when trading CFDs. Make sure you understand how CFDs work and evaluate whether you can afford the potential risk of losing your money.
- ► Past performance does not guarantee future results. A trading history of less than 5 complete years may not be sufficient for making investment decisions.
- ► Financial asset providers do not constitute investment advice. The value of your investments can fluctuate, putting your capital at risk.
- ► Cryptoasset investments are highly volatile and may be unregulated in some jurisdictions. Consumer protection may not be available, and taxes on profits could apply.
- ► USA financial asset providers are not affiliated with any specific entity and do not offer CFDs. The platforms take no responsibility for the accuracy or completeness of the content in this publication, which is based on publicly available, non-entity-specific information.
► Trade with caution and be warned!