Trading Reversal Patterns & Continuation Chart Setups

Patterns - Trading Analysis Chart Patterns Trading Strategies

Xauusd chart patterns are graphical representations of repeating price action patterns that are commonly used in the market.

Patterns is one of the studies used in analysis to help traders learn how to identify these repeating Chart Patterns formations.

These Patterns are important in gold because when the market is not moving in a particular direction it is forming a chart pattern. It is important to know these Chart Patterns patterns so as to have an idea of what might be the next move in the market.

When price movements are drawn there are several Chart Patterns patterns that occur naturally and repeat themselves over and over again. These Chart Patterns patterns are used by a lot of trading technical traders to predict the next market move.

Traders often study these Chart Patterns patterns to gauge supply and demand forces that form the basis for price fluctuations.

These Patterns are classified into Three different categories:

1. Reversal Trading Setups

• Double tops Gold Setups

• Double bottoms Gold Setups

• Head and shoulders Gold Setups

• Reverse head and shoulders Gold Setups

2. Continuation Trading Setups

• Rising triangle Gold Setups

• Falling triangle Gold Setups

• Bull flag/pennant Gold Setups

• Bear flag/pennant Gold Setups

3. Bilateral

• Symmetric triangle - Consolidation Setups

• Rectangle - Range Setups

Reversal patterns - Gold Setups - confirm the reversal of the market trend once this reversal setup is confirmed. These Reversal Chart Patterns are formed after extended market trend either upwards or downward & these reversal patterns signal that the market is ready to reverse.

Continuation patterns Gold Setups - are formations that set up the market for a trend continuation move in direction of previous trend. These Continuation Chart Patterns are formed when the market is taking a break prior to continuing in same direction of previous trend.

Consolidation patterns Gold Setups - form when the market is taking a break prior to deciding next trend direction to move. When these Consolidation Chart Patterns are formed - the market is trying to determine what direction to trade.

Technical Chart Analysis of Setups

There are two different types of chart analysis, these two may seem similar but are not: the two are:

• Japanese Candlesticks Patterns - Study of a single candlestick - Read Japanese Candle-sticks Patterns

• Chart Patterns - Study of a series of candlesticks formations

(This learn gold tutorial is about the second option above - Chart Patterns)

The different topics for these two types analysis are:

Japanese Candles

• 39. Marubozu Candle-stick Pattern and Doji Candlestick Pattern

• 40. Spinning Top Candlesticks Pattern Setups

• 41. Reversal Candlesticks Pattern Setups

• 42. Inverted Hammer Candle-stick Pattern & Shooting Star Candlesticks Pattern Setups

• 43. Piercing Line Candle-stick Pattern & Dark Cloud Cover Candlesticks Pattern Setups

• 44. Morning Star Candlesticks & Evening Star Candlesticks Pattern Setups

Gold Setups Lessons

• 53. Double Top & Double Bottom Pattern Setups

• 54. Continuation Trading Setups

• 55. Consolidation Chart Setups

• 56. Head and Shoulders Patterns and Reverse Head & Shoulders Pattern Setups

The examples below also illustrate the difference of the arrangements of these two trading analysis methods.

Candlesticks Patterns - Study of a single candle

Chart Patterns - Study of a series of candles