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 Trading Patterns
- Double Top Patterns
- Double Bottoms Patterns
- Head & Shoulders Patterns
- Reverse Head and Shoulders Patterns
Reversal Patterns confirm the reversal of the market trend once this reversal chart patterns setup is confirmed. These reversal chart patterns are formed after extended market trend either upward or downward & these patterns signal that the forex market trend is ready to reverse.
Reversal Patterns Explained Guides
Double Tops Chart Patterns & Double Bottom Chart Patterns
Head & shoulders Forex Chart Patterns & Reverse Head & shoulders Forex Chart Patterns
2. Continuation Chart Patterns
- Ascending Triangle Patterns
- Descending Triangle Chart Patterns
- Bull Flag/Pennant Patterns
- Bear Flag/Pennant Patterns
Continuation Patterns are formations that set up the market for a trend continuation move in the direction of the prior Forex trend. These continuation patterns are formed when the market is taking a pause before continuing in the same direction of the previous Forex trend.
Continuation Chart Patterns Explained Tutorials
3. Bilateral Forex Trading 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 Chart Patterns Explained Tutorials
What are Forex Chart Trading Patterns? - Analyzing Patterns - Reversal Chart Patterns, Consolidation Patterns & Continuation Chart Patterns
