On this page you will find a collection of all the technical analysis fx patterns that we believe are necessary to trade FX propertly. You don't need to know all of the FX patterns, pick a few and get to know them very well.
In technical analysis, you will often hear traders talk about the head and shoulders pattern. But what do they mean exactly when they talk about that? Read more >>
As was outlined by Chris last week in his AUD/NZD video the pair could be looking to move higher. It’s shaping up as a head and shoulders bottom with support shown at the 1.254 level by the chart. The AUD/NZD tends to be a “grinding pair” in that large significant moves are rare given the economies are so closely linked together. Read more >>
A pennant pattern is a continuation pattern that marks the continuation for the prevailing trend, after a brief pause. Read more >>
Flag patterns are commonly used to indicate the continuation of the prevailing trend. Often they occur after sharp price again in one direction and represent a brief pause in momentum before the eventual continuation of the rally upwards or downwards. Read more >>
A double bottoms pattern is the inverse of a double top pattern. When such a pattern forms, it is a strong signal that a downtrend is reversing. A double bottoms starts with a prolonged downtrend, followed by a rise and then another drop to about the same level as the original low of the downtrend. Finally, we see another substantial rise from the second low. The double bottom patter should eventually emulate the letter "W". Read more >>
One of the most profitable FX trading patterns is the Head and Shoulders Bottom. A true Head and Shoulders bottom is a tell-tale sign to mark the end of a significant downtrend and the beginning of a new uptrend upon completion of the formation. The pattern is very distinctive and easy to recognise and is one of the most popular of all trading patterns. Read more >>
Double Tops are an important part of any Forex Trading Strategy as they can provide an early indication that the current trend is changing direction from an uptrend to a downtrend. A typical double top starts with a prolonged rise in price for a currency, followed by a drop and then another rise to about the same level as the original rise. Finally, we see another substantial drop off from the second high. The double top pattern should eventually emulate the letter "M". Read more >>
The double bottom pattern is a very strong bullish signal as it shows that the market’s sellers have pushed prices to low levels twice, yet failed to continue the rout of the currency pair. The psychological aspect of the pattern is that sellers will find that they simply do not have the power to continue the selling, and that they suddenly find themselves losing money. Play video >>
The double top pattern is a very strong bearish signal that shows that the market’s buyers have pushed prices to new highs twice, yet failed to continue the uptrend. The psychology of the pattern is that buyers will find that they simply do not have the strength to continue the uptrend, and that they suddenly find themselves losing money. Play video >>
One of the most commonly followed chart patterns is the flag pattern. The flag pattern is normally a resting phase of a longer running trend. The flag by its very definition is a continuation pattern, meaning that if the previous trend is up, the expected move is up. It also works in reverse as there are also inverse or “upside down” flags as well. Play video >>
The head and shoulders pattern is a strong reversal signal that normally gets traders to sit up and take notice. There are two variations of the pattern, the normal head and shoulders, and the “inverse” head and shoulders. Play video >>
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