Category: 2. Important Chart Patterns

Chart Patterns Cheat Sheet

Like we promised, here’s a neat little cheat sheet to help you remember all those chart patterns and what they are signaling. We’ve listed the basic forex chart patterns, when they are formed, what type of signal they give, and what the next likely price move may be. Check it...
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Know the 3 Main Groups of Chart Patterns

That’s a whole lot of chart patterns we just taught you right there. We’re pretty tired so it’s time for us to take off and leave it to you from here… Just playin’! We ain’t leaving you till you’re ready!In this section, we’ll discuss a bit more about how to use...
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How to Trade Triangle Chart Patterns

A triangle chart pattern involves price moving into a tighter and tighter range as time goes by and provides a visual display of a battle between bulls and bears. The triangle pattern is generally categorized as a “continuation pattern”, meaning that after the pattern completes,  it’s assumed that price will continue in the...
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How to Trade Bearish and Bullish Pennants

Similar to rectangles, pennants are continuation chart patterns formed after strong moves. After a big upward or downward move, buyers or sellers usually pause to catch their breath before taking the pair further in the same direction.Because of this, the price usually consolidates and forms a tiny symmetrical triangle, which...
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How to Use Rectangle Chart Patterns to Trade Breakouts

A rectangle is a chart pattern formed when price is bounded by parallel support and resistance levels. A rectangle exhibits a period of consolidation or indecision between buyers and sellers as they take turns throwing punches but neither has taken over.The price will “test” the support and resistance levels several times before eventually...
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How to Trade Wedge Chart Patterns

It means that the magnitude of price movement within the Wedge pattern is decreasing. Wedges signal a pause in the current trend. When you encounter this formation, it signals that forex traders are still deciding where to take the pair next. A Falling Wedge is a bullish chart pattern that takes place in an upward...
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How to Trade the Head and Shoulders Pattern

The head and shoulders chart pattern is a reversal pattern and most often seen in uptrends. Not only is head and shoulders known for trend reversals, but it’s also known for dandruff reversals as well. In this lesson, we’ll stick to talking about trend reversals and leave the topic...
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How to Trade Double Tops and Double Bottoms

When a double top or double bottom chart pattern appears, a trend reversal has begun. Let’s learn how to identify these chart patterns and trade them. Double Top A double top is a reversal pattern that is formed after there is an extended move up. The “tops” are peaks...
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Chart Patterns Schmatterns

By now you have an arsenal of weapons to use when you battle the market. In this lesson, you will add yet another weapon: CHART PATTERNS! Think of chart patterns as a land mine detector because, once you finish this lesson, you will be able to spot “explosions” on the charts before...
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