How Do Chart Patterns Work?

Chart patterns work by analyzing the supply and demand of a currency pair in the forex market by using commonly repeated chart patterns.

Does Chart Pattern Technical Analysis Work?

These Forex Patterns are classified into Three different categories:

1. Reversal Trading Patterns

Double Top Patterns

Double Bottom Chart Patterns

Head and Shoulders Patterns

Reverse Head & Shoulders Patterns

2. Continuation Chart Patterns

Ascending Triangle Patterns

Descending Triangle Patterns

Bull Flag/Pennant Chart Patterns

Bear Flag/Pennant Patterns

3. Bilateral Forex Trading Patterns

Symmetric Triangle - Consolidation Patterns

Rectangle - Range Forex Chart Patterns

Reversal Chart 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 trading signal that the forex market trend is ready to reverse.

Continuation Patterns are formations which 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 break before continuing in the same direction of the previous Forex trend.

Consolidation Patterns form when the forex market is taking a pause before deciding the next direction to take. When these consolidation Forex Chart Patterns are formed the market is trying to decide what direction to trade.

Chart Patterns Lessons