What are Forex Chart Trading Patterns? Analyzing Chart Patterns
Forex trading chart patterns is a formation of repeating price patterns used by traders to determine when to open a buy trade or a sell trade depending on the technical analysis of the current chart pattern that has formed on the price chart.
There are three main types of forex chart trading patterns and these are continuation chart pattern, reversal patterns & consolidation chart patterns.
The different patterns have different technical analysis techniques and each provided a different trading setup with different technical analysis. Traders can use the tutorial below to learn more about analyzing chart patterns explained in this tutorial:
1. Reversal Chart Patterns
- Double Top Patterns
- Double Bottoms Chart Patterns
- Head and Shoulders Patterns
- Reverse Head and Shoulders Patterns
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 and these patterns trading signal that the forex market trend is ready to reverse.
Reversal Chart Patterns Explained Guides
Double Top Chart Patterns & Double Bottom Chart Patterns
Head & shoulders Forex Chart Patterns and Reverse Head & shoulders Chart Patterns
2. Continuation Chart Patterns
- Ascending Triangle Patterns
- Descending Triangle Chart Patterns
- Bull Flag/Pennant Chart Patterns
- Bear Flag/Pennant Patterns
Continuation Patterns are arrangements which set up the market for a trend continuation move in direction of the prior Forex trend. These continuation patterns are formed when the market is taking a break before continuing in same direction of the previous Forex trend.
Continuation Patterns Described Tutorials
3. Bilateral Forex Chart Patterns
- Symmetric Triangle - Consolidation Patterns
- Rectangle - Range Forex Chart Patterns
Consolidation Patterns form when the forex market is taking a pause before deciding the next direction to take. When these consolidation chart patterns are formed the market is trying to decide which direction to trade.
Consolidation Patterns Described Tutorials
What are Forex Chart Trading Patterns? - Analyzing Patterns - Reversal Chart Patterns, Consolidation Chart Patterns & Continuation Chart Patterns
