The Folding Meter pattern (or 3-stage trendline) is a simple forex strategy used on many currency pairs, and it is also suitable for all time intervals.

When trading forex, it is often necessary to wait for the moment of trend reversal, but when it will happen is very difficult to determine. With the help of the pattern “Folding meter” you can enter the market at the initial stages of trend reversal.

To open a short position on this pattern you need to:

1) Draw a trend line (T1) of the recently formed lows.

2) After the impulse formation it is necessary to draw the second trend line (T2) on the bases of the recently formed troughs. In case the price did not reach the trend line (T1) during the correction, it is necessary to add the third line T3.

3) The third line should be built when the line gains speed.

Market entry points:

A position should be opened when the price has broken the trend line T3 and the candle closing occurred below the line. A stop order should be placed above the maximum (the top of the upward movement). Profit should be fixed when the first trend line T1 is reached.

Conditions for opening a long position:

1) Build the trend line T1 on the recent highs.

2) After acceleration of the trend, draw the second trend line T2.

3) After another price impulse, draw another trend line T3.

Buy entry point:

We make a buy trade when the price broke through the trend line T3 and closed above it. We place a stop-loss order below the local minimum, and fix the profit when the price reaches the first trend line.