Trading Reversal Patterns & Continuation Setups Patterns

Patterns - Trading Analysis Patterns 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 specific direction it is forming a chart pattern. It's important to know these patterns so as to have an idea of what might be the next move in the market.

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

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

These Patterns are classified into Three different categories:

1. Reversal Setups

• Double tops Gold Setups

• Double bottoms Gold Setups

• Head & shoulders Gold Setups

• Reverse head & shoulders Gold Setups

2. Continuation 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 Patterns

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

Continuation patterns Gold Setups - are formations that set-up the market for a market trend continuation move in direction of previous trend. These Continuation Patterns are shaped and formed when the market is taking a pause before continuing in same direction of previous trend.

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

Technical Chart Analysis of Patterns

There are 2 various different types of chart analysis, these two might seem similar but are not: the 2 are:

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

• Chart Patterns - Study of a series of candlesticks formations

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

The different courses for these two types analysis are:

Japanese Candles

• 39. Marubozu Candlestick Pattern and Doji Candle Pattern

• 40. Spinning Top Candlesticks Patterns

• 41. Reversal Candles Patterns

• 42. Inverted Hammer Candlestick Pattern & Shooting Star Candlesticks Patterns

• 43. Piercing Line Candle-stick Pattern and Dark Cloud Cover Candlesticks Patterns

• 44. Morning Star Candles and Evening Star Candlesticks Patterns

XAUUSD Setups Lessons

• 53. Double Top & Double Bottom Patterns

• 54. Continuation Setups

• 55. Consolidation Setups

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

The illustrations below also display the difference of the arrangements of these 2 analysis methods.

Candles Patterns - Study of a single candle

Chart Patterns - Study of a series of candlesticks

Get More Courses & Guides:

• How Do You Trade XAUUSD Candlesticks Patterns?
• Methods of Calculating Where to Place & Set Stop Losses in XAU/USD
• Relative Strength Index Trade Indicator Buy and Sell Signals
• Ultimate Oscillator Gold Indicator
• How Do You Trade Gold in MT4 iPad App?
• What's the Definition of XAU/USD Practice Account?
• DeMarks Range Expansion Index Trade Indicator Buy and Sell Signal