Here is our guide to the most profitable FX Chart Patterns used for Online FX trading. Our chart patters contain well illustrated video examples by our professional traders as well as text explaining each video.
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 >>
One of the easiest to spot and certainly common chart formations is the rectangle. The pattern will repeat over and over throughout a trend, and simply means that the markets are taking a rest before the next move up or down. Quite often, they are continuation patterns, but there are specific rules one should follow before taking that trade. Play video >>
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