Chart Patterns Strategy
Xauusd chart patterns are chart representations of repeating price action pattern formations that are commonly used in the market.
Xauusd chart patterns is one of the studies used in analysis to help traders learn how to recognize these repeating chart patterns formations.
Xauusd chart patterns are important in trade because when the market is not moving in a particular direction it is forming a chart pattern. It is important to know these formations so as to have an idea of what may be the next move in the trading market.
When price movements are drawn there are several formations that occur naturally & repeat themselves over and over again. These chart patterns patterns are used by a lot of technical traders to predict the next gold trading market movement.
Traders often study these chart patterns formation to analyze supply and demand forces that form the basis for price fluctuations of a particular xauusd.
These patterns are classified in to Three different categories:
1. Reversal Patterns
- Double Tops Chart Setups
- Double Bottom Chart Setups
- Head & Shoulders Chart Setups
- Reverse Head & Shoulders Chart Setups
2. Continuation Patterns
- Ascending Triangle Patterns
- Descending Triangle Patterns
- Bull Flag/Pennant Chart Setups
- Bear Pennant/Flag Chart Setups
3. Bilateral Patterns
- Symmetrical Triangle - Consolidation Chart Setups
- Rectangle - Range Chart Setups
Reversal Patterns confirm the reversal of the market trend once this reversal patterns setup is confirmed. These reversal patterns are formed after extended market trend either upwards or downwards & these patterns signal that the market trend is about to reverse.
Continuation Setups are arrangements which set up the market for a trend continuation move in direction of previous trend. The continuation patterns are formed when the market is taking a break prior to continuing in same direction of previous trend.
Consolidation Setups form when the market is taking a break prior to deciding next direction to head. When these consolidation patterns are formed the market is trying to figure out what direction to trade.
Patterns Tutorials
Chart Setups - Study of a candles gold trading patterns
Chart Patterns - Chart Patterns Method
