Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24
How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - 17th Feb 24
Why Rising Shipping Costs Won't Cause Inflation - 17th Feb 24
Intensive 6 Week Stock Market Elliott Wave Training Course - 17th Feb 24
INFLATION and the Stock Market Trend - 17th Feb 24
GameStop (GME): 88% Shellacking Yet No Lesson Learned - 17th Feb 24
Nick Millican Explains Real Estate Investment in a Changing World - 17th Feb 24
US Stock Market Addicted to Deficit Spending - 7th Feb 24
Stocks Bull Market Commands It All For Now - 7th Feb 24
Financial Markets Narrative Nonsense - 7th Feb 24
Gold Price Long-Term Outlook Could Not Look Better - 7th Feb 24
Stock Market QE4EVER - 7th Feb 24
Learn How to Accumulate and Distribute (Trim) Stock Positions to Maximise Profits - Investing 101 - 5th Feb 24
US Exponential Budget Deficit - 5th Feb 24
Gold Tipping Points That Investors Shouldn’t Miss - 5th Feb 24
Banking Crisis Quietly Brewing - 5th Feb 24
Stock Market Major Market lows by Calendar Month - 4th Feb 24
Gold Price’s Rally is Normal, but Is It Really Bullish? - 4th Feb 24
More Problems in US Regional Banking System: Where There's Fire There's Smoke - 4th Feb 24
New Hints of US Election Year Market Interventions & Turmoil - 4th Feb 24
Watch Consumer Spending to Know When the Fed Will Cut Interest Rates - 4th Feb 24
Blue Skies Ahead As Stock Market Is Expected To Continue Much Higher - 31st Jan 24
What the Stock Market "Fear Index" VIX May Be Signaling - 31st Jan 24
Stock Market Trend Forecast Review - 31st Jan 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

What Should Forex Traders Know About the Ross Hook Pattern?

Currencies / Forex Trading May 09, 2023 - 10:15 PM GMT

By: Sumeet_Manhas


Trading experts note the great rivalry level in the global FX market nowadays. Specialists explain such a situation because of the intensive development of this investment sector. Reuters analysts state that the specified trading branch increased by 14% from 2019 to 2022. Intense rivalry forces investors to seek effective ways to make deals. And skilled traders consider the Ross Hook pattern one of today's most efficient trading strategies.
Specialists claim that the RH tactic only gives great results if you cooperate with trustworthy brokers (for instance, FBS), though. That's because unchecked brokerage sites often freeze and lag. That's especially true for peak hours. In this case, you can't make deals exactly at the right time. As a result, investors sell assets at lower prices or even have losses. And now, let's view the primary features of the RH strategy.

Ross Hook Pattern Explanation

The specified method was developed by an experienced investor and great analyst, Joe Ross. The latter had been working in financial markets his whole life since 1935. And he put all his experience into the described strategy.


Joe developed the RH tactic based on the 1-2-3 chart analysis method. The specified strategy is a 100% price action pattern. The Hooks appear after 1-2-3 breakouts in a chart. So, the RH pattern is actually a smaller version of the 1-2-3 figure. Thus, finding "double hooks" is everything you need to use the mentioned tactic.

Comments of Joe Ross On How to Successfully Employ Hook Patterns

The great investor published a book with the necessary information to simplify the RH strategy usage. So, here are some pieces of advice from Joe on how to succeed when employing his tactic:

  1. Traders should accept the fact that they will have periodic money losses. If you strive to get a 100% profit from each deal, it can lead to an inadequate assessment of the ongoing market situation. As a result, a trader may become bankrupt shortly. You should keep in mind that all losses can be covered by the total profit with a reasonable approach to trading.
  2. Investors have to observe the hard steel discipline when trading. Otherwise, even the most effective strategy won't give proper results.
  3. Traders should evaluate their success by comparing regular and initial spending and total revenue.

The tips above passed the time test. So, investors will definitely succeed if they follow these simple suggestions.

When to Use the Ross Hook Pattern

The RH strategy is a perfect tool when dealing with assets where strong trends frequently appear. For example, the mentioned tactic may be successfully employed when trading currency pairs, including JPY (for example, EUR/JPY, USD/JPY, or GBP/JPY). At the same time, skilled traders don't recommend using Hooks when trading the EUR/USD currency pair.

RH Pattern Pros and Cons

The key advantage is that the mentioned tactic gives you clear trading signals. That's because the strategy is based on the behavior and technical features of the work of large FX market participants.

Among essential cons, it's worth noting the complexity of inexperienced investors' usage of the described pattern. So, experts recommend beginners consult proficient traders when employing the RH pattern.


The RH pattern may help investors get much more income if they trade assets that stand out for frequent strong market trend appearances. The method is quite simple to use if you have certain experience in trading. So, beginners are recommended to consult skilled investors when employing the RH strategy.

By Sumeet Manhas

© 2023 Copyright Sumeet Manhas - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2022 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in