A very special strategic figure is that of Bow Tie, named for the particular configuration papillon. Essentially, the Bow Tie allows us to highlight the moment when the trend is a phase transition from bullish to bearish or vice versa, are at the same time, the best point to enter into the transaction.

In this first article on Bow Tie're going to see what and how you can be, or what are the individual components thereof.

The chart must be designed so that we can calculate three different moving averages at the same time, namely that a mere 10 times, that at 20 times that of a 30 period exponential and exponential. The moving average of 10 periods is that,

If we are facing a downward trend, then we have the moving average is less than 10 times to 20 times, which in turn is less than 30 periods. Conversely, if we are faced with a positive trend, then we have the moving average is 10 times higher than the 20 periods, which in turn is larger than that at 30 times. This is true because the faster moving average, or one to 10 periods, is closer to the actual price.

Having defined these concepts in general, we can see that the operation according to the figure of the bow tie, or Bow Tie, includes six sequential rules. These rules apply in the order we are going to expose if the trend is upward, while if we are faced with a downward trend, then the order of performance shall be reversed.

Will continue in the next article on the deepening Bow Tie going to see in detail these six rules of operation.