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Trading the Cup and Handle Pattern
William O’Neal gave us the cup and handle patterns in his 1988 book titled “How to Make Money in Stocks”. Even though this chart pattern was initially developed for the stock market, the forex market can also be traded with chart patterns and so the cup and handle pattern has been successfully applied to the […]
Read Some MoreThe Breakout: What is it and how is it traded?
Breakouts are a very regular occurrence in the forex market, and their occurrence has major implications for the price action of the currency pair and by extension, the trader’s positions in the market. A breakout is defined as a price movement that breaks through an identified level of resistance or support, usually accompanied by heavy […]
Read Some MoreTrading with Rectangles
The rectangle pattern is another chart pattern that traders should watch out for. This pattern is a continuation chart pattern that appears as a period of consolidation in the middle of a trend, with the asset resuming its move in the direction of the previous trend post-consolidation. Two trend lines can be drawn to connect […]
Read Some MoreProfiting with Rounding Tops and Bottoms
Rounding tops and bottoms are yet another set of chart patterns less popular but effective at sucking profits from the Forex market if used correctly. They are both reversal patterns that signify the end of a trend and the beginning of a new one. Rounding bottoms are formed when an arc is traced round the […]
Read Some MoreTrading the Diamond Patterns
The diamond patterns in forex earn their name because when the pattern is completed and boundaries are drawn in with trend lines, they form the four sides of a diamond. These diamond patterns are reversal patterns, and their appearance at the extremes of the trend signal a market turning point or reversal. There are two […]
Read Some MoreHow To Approach Your Trading Day
Today, we will go through the processes that constitute the correct approach to a typical trading day for a forex trader. The most important component of a typical day in the trading business is to first understand the sentiment of the market. A trader who understands what the prevailing market sentiment or feeling is will […]
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Tweezer Tops and Bottoms
In today’s article, we will discuss another set of candlestick patterns which are not very popular, but will yield profits for those traders who know how to use them. These are candlesticks known as Tweezers, and the two patterns to be discussed are the Tweezer top and Tweezer bottom. As the names imply, they signal […]
Read Some MoreTrading the Double Bottom Pattern
Today’s topic is on how to use another common chart pattern to pick up pips from the Forex market otherwise known as the DOUBLE BOTTOM. The double bottom is a bullish reversal pattern that signifies when prices have bottomed out and are ready for an upside reversal. It is like the currency pair is saying: […]
Read Some MoreTrading the Double Top Pattern
Today we will talk about yet another chart pattern that traders can use to glean profits; the DOUBLE TOP pattern. The double top is a bearish reversal pattern that signifies when prices have topped out and are ready for a reversal. The double top is made up of two successive peaks that are formed as […]
Read Some MoreTrading the Head and Shoulders Pattern
The “head and shoulders” pattern is one of the better chart patterns seen in the Forex market which can be traded for good profits when it appears. This pattern works very well on currency pairs that are known to trend. The “head and shoulders” pattern is formed by three price peaks, with the second peak […]
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