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|Learn Forex Trading > Day 8 Class ( Important Chart Patterns ) > Pattern Schmatterns|
Patterns can help traders spot the big movement before it actually happen
in the Forex market. This will simply be your goal.|
The following are list of patterns that you should know:
1. Symmetrical Triangles
This is the triangle formation that you will notice at the chart. This is where the slope of the high prices and the slope of the low prices meet together in a point. And that is why it has formed a triangle.
When this occurs it means that the market is making higher lows and lower highs. It means that not the buyer or even the sellers are forcing the price father, enough to make the trend clear.
2. Ascending triangles
This formation only happens when there is an opposition level and a slope of higher lows. If this occurs it means that during this period there is a specific level that a buyer cannot just exceed.
Nevertheless, buyers are slowly beginning to force the prices upward as evidently the higher lows.
3. Descending Triangles
This is the exact opposite of the ascending triangles. There is a string of the lower highs that is forming the upper line. The support level is the lower line that means the prices seem unbreakable.
4. Double Top
This is a reversal pattern, if there is an extended move upward this will be formed. The word "top" means the peak of the pattern that are formed after the prices hits a specific level that cannot be broker.
After this occurs the prices will somewhat bounce off slowly, however, it will be back again to test the level. Again if this happens and bounce for the second time this means that you got a double top.
5. Double Bottom
This is the exact opposite of the double top. This is also a trend of reversal formations. But in this pattern we are looking in a long go instead of short.
This happens after the downtrend is extended when two valleys hit the bottom.
6. Head and Shoulders
This is also a kind of reversal trend formation. This pattern is composed of the peak, which is the first shoulder, next is the higher peak, which is the head and the followed by another peak lower than the head, which is the second shoulder.
This is a more reliable signal when the slop is down.
7. Reverse Head and Shoulders
Again, this is an exact opposite of the Head and Shoulders. This pattern occurs when the movement goes downward.
The prices are moving after it has reached the specific target. If your target has been hit, be happy with it and do not be greedy.
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