Forex chart patterns are the most valuable things in forex trading. In day-to-day trading life, we did not place a single trade without seeing in the chart pattern. So, today we will talk about the most uses chart patterns in forex trading. So, here we go–
- Head and Shoulders Pattern (H&S)
The H&S pattern changes after an uptrend and it can be a topping formation and after a downtrend, it can be a bottoming formation. A topping formation is high and follows a retracement which shows a higher high and then a lower low. Where bottoming formation is low and follows a retracement which shows a lower low and then a high low. The patterns become completed when the trendline connects both two highs or two lows.
- Triangle Chart Patterns
The Triangle chart pattern is a very common pattern and occurs in short-term time frames. Especially day traders, scalpers are using triangle chart patterns. It shows the market volatility of prices with highs and lows. This chart pattern can vary in symmetric, ascending, descending for different trading purposes.
- Engulfing Chart Patterns
Between candlestick and line patterns, the candlestick pattern is more informative than the line pattern. It is useful while showing more information when the price movement is engaging in all time frames. In these all candlestick patterns, particularly one which is more useful in forex trading.
Also, there are lots of patterns on my list. But you must be a forex trading analyst by your side to get the best trades. I am using Pipswin for sure. Because it is really reliable and trustworthy.
So, what’s on your mind? Please write down in the comment section!