In the case of Ross Hook that is in place, you need to buy violation that of high that of correcting bars that form subsequent to hook point that of Ross hook. Correcting bars are the ones that are seen subsequent to that of Rh point and the correcting bars exist as correcting bars only until lower highs are made by traders in the forex market.
Provision 1 of TTE – Ross Hook
The firs provision that is associated with TTE – Ross Hooks there should be adequate amount of space between Rh point and entry point for the purpose of covering costs as well as for making some amount of profit. There are two benefits in allocating space, the first one is that you will paid for the trade that you are doing in the forex market. If the breakout in the forex market turns to be false, then also you may get chances for winning as well as you also get a trade for free. Area that exists between Rh point and fisrt dashed line should be having adequate amount of space for the purpose of covering cost as well as for taking profit. If there is no adequate amount of space, then TTE can occur in subsequent bars in the price bar chart. By taking profit as well as covering costs before reaching Rh point, you get a trade for free. In the case of prices going well after Rh point, you can make highly profitable trade. This is similar to executing two trades simultaneously.
Provision 2 of TTE – Rh
The second provision that of TTE – Rh pattern in forex market states that Rh formations should occur only at those point subsequent to violation that occurs at #2 point of 1 2 3 formation, ledge or consolidation. Violation occurring at # 2 point within 1 2 3 pattern is capable of defining trend. A violation that occurs subsequently to Rh point can establish trend in the forex market. Violation that of ledge can redefine trend in the forex market as ledge can happen only in the case of existing trend. Violation occurring subsequent to that of Rh is capable of re – establishing trade. Violation of consolidation is capable of defining a trend and violation of Rh point subsequent to consolidation establishes trend in forex market.
Provision 3 of TTE – Rh Strategy in Forex Market
The third provision associated with TTE – Rh states that in the case of a single exception, there cannot be three bars concerned with correction before the movement of prices towards Rh point. Violating high that of first bar related with correction provides more chance for continuous movement after Rh point but this only provides less chance for having space for the purpose of covering costs as well as for making profit. Violation that of high concerned with second bar involved in correction provides less chance for continuous movement after Rh point but there is more chance for having room for covering costs as well as taking profits.