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Forex Patterns
Charts record every price movement of the trading instrument. Charts
reflect the traders’ sentiment in any given market scenario and depict the
underlying mindset of the buyers and sellers. Traders tend to behave
mostly in a similar pattern in identical situations. Since charts are a result
of the actions of traders, the trading charts reflect patterns. Forex patterns
and stock market patterns are similar to each other as the trader’s
sentiment mostly drives these markets.
A deep understanding of these patterns provides the trader with the best
entry and exit points and enables the trader to benefit from the entire
trend movement. Successful traders master these forex patterns since
they repeatedly occur and present multiple opportunities. The chart
patterns appear in all time frames and are suitable for all kinds of traders.
Both new traders and advanced traders can trade the patterns with great
success.
The 28 Forex Patterns Complete Guide • Asia Forex Mentor
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Contents
1. Chart patterns
2. Forex chart patterns
3. Forex continuation chart patterns
4. Reversal chart patterns
5. Bullish forex patterns
6. Bearish forex patterns
7. Forex patterns
8. Head and Shoulders
9. Inverted Head and Shoulders
10. Double Top pattern
11. Double Bottom Pattern
12. Triple top pattern
13. Rounded Top pattern
14. Rounded Bottom Pattern
15. Ascending Triangle Pattern
16. Descending Triangle Pattern
17. Falling Wedge Pattern
18. Rising Wedge Pattern
19. Rising Pennant Pattern
20. Falling Pennant Pattern
21. Most profitable forex patterns
22. Forex patterns cheat sheet
23. Forex candlestick patterns
24. Limitations:
25. Conclusion:
The 28 Forex Patterns Complete Guide • Asia Forex Mentor
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Chart patterns
Chart patterns are formations visually identifiable by the careful study of
charts. Completing chart patterns indicates the beginning of a new move, a
new leg of the price movement, or a reversal of the current trend
direction. Completion of a chart pattern enables the trader to identify the
best entry point in the market for swing trading as it indicates the
beginning of the next big swing move.
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Forex chart patterns
Chart patterns are classified as a continuation pattern and reversal patterns
based on the patterns’ ability to reflect the underlying asset’s directional
bias. The completion of continuation patterns indicates the best possibility
of the prices to continue the movement in the trend direction. In contrast,
the completion of a reversal pattern suggests the market’s strong
tendency to reverse its current trend. Both continuation patterns and
reversal patterns provide a forex trader with the best trading
opportunities.
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Forex continuation chart patterns
The following patterns indicate a strong possibility of continuing the
existing trend and are classified as continuation patterns.
The 28 Forex Patterns Complete Guide • Asia Forex Mentor
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1. Pennants
2. Rising wedges
3. Falling wedges
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Reversal chart patterns
The patterns mentioned below provide the trader with an indication of the
end of current trend and signal the beginning of trend reversal in the
opposite direction.
1. Head and Shoulders
2. Inverted head and shoulders
3. Double top
4. Double bottom
5. Triple top
6. Triple bottom
7. Ascending triangle
8. Descending triangle
9. Rounded top
10. Rounded bottom
The 28 Forex Patterns Complete Guide • Asia Forex Mentor
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