Chart Patterns Strategy

Gold chart patterns are chart representations of repeating price action pattern formations that are commonly used in the Trade market.

Gold chart patterns is one of the studies used in technical analysis to help traders learn how to identify these repeating chart patterns formations.

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

When xauusd price movements are drawn there are several patterns that occur naturally & repeat themselves over and over again. These chart patterns patterns are used by a lot of technical xauusd traders to predict the next xauusd market movement.

Traders often analyze these chart patterns formation to analyze supply and demand forces that form the basis for xauusd price fluctuations of a particular gold.

These chart patterns are classified into Three different categories:

1. Reversal Patterns

Double Top Patterns

Double Bottoms Setups

Head & Shoulders Setups

Reverse Head & Shoulders Setups

2. Continuation Setups

Ascending Triangle Patterns

Descending Triangle Setups

Bull Flag/Pennant Setups

Bear Flag/Pennant Setups

3. Bilateral Setups

Symmetric Triangle - Consolidation Patterns

Rectangle - Range Setups

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

Continuation Patterns are arrangements that set up the market for a trend continuation move in direction of the prior trend. These continuation patterns are formed when the market is taking a break before continuing in same direction of the previous trend.

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

Gold Setups Lessons