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What are Patterns? Analyzing Patterns

XAUUSD chart patterns repeat over time. Traders spot them to decide on buy or sell positions. They base choices on the current pattern in the price chart.

There are three main types of chart patterns: continuation chart patterns, reversal chart patterns, and consolidation setups.

Each pattern requires its own analysis method. They offer unique setups for trading. Check the tutorial below to learn how to analyze these chart patterns.

1. Reversal Setups

  • Double Tops Patterns

  • Double Bottom Patterns

  • Head and Shoulders Patterns

  • Reverse Head and Shoulders Patterns

Reversal Setup Setups confirm the reversal of the price trend once this reversal set-ups set-up is confirmed. These reversal setups are formed after extended market trend either upwards or down-ward and these setups signal that the market trend is about to turn & reverse.

Reversal Setups Lessons

Identifying Double Top and Double Bottom Chart Formations

Analysis of Head & Shoulders Patterns and Reverse/Inverse Head and Shoulders Patterns

2. Continuation Patterns

  • Rising Triangle Setups

  • Falling Triangle Patterns

  • Bull Flag/Pennant Patterns

  • Bear Pennant/Flag Patterns

Continuation Setups are arrangements which setup the market for a market trend continuation movement in the direction of the prior trend. These continuation setups are formed when the market is taking a pause before continuing in the same market direction of the prior trend.

Lessons on Continuation Patterns and Tutorials

Recognition of Continuation Chart Patterns

3. Bilateral Patterns

  • Symmetric Triangle - Consolidation Setups

  • Rectangle - Range Patterns

Consolidation Patterns form when the market is taking a pause/break before deciding the next trend direction to trade. When these consolidation patterns form, the market is trying to determine and make a decision which direction to take.

Directional Patterns Instructional Sets

Identifying and Trading Consolidation Chart Patterns

Exploring Patterns: Learn about Reversal Patterns, Consolidation Patterns, and Continuation Patterns as part of trading analysis.

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