How Do Chart Patterns Work?
Chart patterns work by analyzing the supply and demand of a currency pair in the forex trading market by using commonly repeated chart patterns.
Does Chart Pattern Technical Analysis Work?
These Forex Chart Patterns are classified into Three different categories:
1. Reversal Trading Patterns
- Double Top Patterns
- Double Bottoms Patterns
- Head & Shoulders Patterns
- Reverse Head and Shoulders Patterns
2. Continuation Trading Patterns
- Ascending Triangle Patterns
- Descending Triangle Chart Patterns
- Bull Flag/Pennant Patterns
- Bear Flag/Pennant Patterns
3. Bilateral Forex Trading Patterns
- Symmetric Triangle - Consolidation Patterns
- Rectangle - Range Forex Chart Patterns
Reversal Patterns confirm the reversal of the market trend once this reversal Forex Chart Patterns setup is confirmed. These reversal Forex Chart Patterns are formed after extended market trend either upwards or downwards & these patterns signal that the forex market trend is ready to reverse.
Continuation Patterns are formations that set up the market for a trend continuation move in direction of the prior Forex trend. These continuation Forex Chart Patterns are formed when the market is taking a pause before continuing in same direction of the previous Forex trend.
Consolidation Patterns form when the forex market is taking a break before deciding the next direction to take. When these consolidation Forex Chart Patterns are formed the market is trying to decide which direction to trade.
Chart Patterns Tutorials
Forex Chart Patterns - Study of a candlesticks chart patterns
Forex Patterns - Forex Chart Patterns Explained
