The Top 12 Chart Trends You MUST Learn to Trade successfully in 2020submitted by Eva_Canares to FTMO_Forex_Trading [link] [comments]
If you want to be a proficient technical analyst, you've got to practice understanding chart trends.
Chart patterns, with great profits, can generate very reliable signals and reward traders.
We cover the top 12 chart trends with examples in this article and show you how to use them and how to make money trading with them.
The Head and Shoulders Pattern
The head and shoulders pattern is considered to be one of the most effective models for reversal. It begins when the price rises to the top after a long bullish run, and pulls down.
Shortly thereafter, the price increases again to a slightly higher rate but again decreases.
Finally, for the third time, the price goes up but only hits a point of the first high.
It pulls back after that and completes the pattern.
Head and Shoulders Pattern 2020
Inverse Head and Shoulders Pattern
There is also, as with other trends, an inverse head and shoulders that
happens after an prolonged downtrend and suggests that the price will go up.
Inverse Head and Shoulders Pattern 2020
Cup And Handle Patterns
A pattern on the cup and handle is a bullish pattern of continuity.
It is made up of two parts-a cup and a handle.
When a cup is full, the handle is shaped on its right side.
If a breakdown on a line of resistance follows, and traders find it a precursor for an uptrend.
Cup And Handle Patterns 2020
Cup And Handle Patterns (b) 2020
As you can see, there is nothing difficult about recognizing and trading a 'Cup and Handle' pattern.
Upon entering the trade on a resistance retest, you can put your stop loss below a handle's low and let the trade do its job.
One of the most common patterns among traders are both ascending triangles and descending ones.
We should take a look at it from more of a rational viewpoint to really help you understand this trend.
The ascending triangle is formed when the price is incapable of breaking a resistance but, at the same time , higher lows form.
Ascending Triangle Pattern 2020
As you may see in the above example , the price bounces from resistance but on each bounce it is unable to make a lower low.
That gives us a bullish signal that a potential break is about to occur.
Ascending Triangle Chart Pattern 2020
Inverse to the Ascending Triangle, the Descending Triangle is noticeable when
the market bounces from support but can not hit higher altitudes.
Descending Triangle pattern 2020
Descending Triangle Chart Pattern 2020
The Falling Wedge Pattern
Falling wedge is a bullish trend of reversal that happens most of the time while
the price is going down but we can see divergence on one of our oscillators.
That means that while the price goes down, sellers
get tired and we can expect a reversal soon.
The Falling Wedge Pattern Chart Pattern 2020
Reversal of Dropping Wedge, price is moving higher
but in your oscillator you can find weakening clues.
Rising Wedge Chart Pattern 2020
Double Top Pattern
Typically the double top pattern is made at
the end of the trends as a toping shape.
It is a bearish reversal trend characterized by the peak which is
followed shortly by the second at the same or very close price point.
The double top pattern is true until
the price breaks below the highs rendered support.
We use the same word "neckline" that is
used for the Head and Shoulders pattern as well.
You may either join the trade after the
neckline is broken, or wait for the neckline's retest.
Double Top Pattern Chart Pattern 2020
Double Bottom Pattern
The Double Top opposite is the Double Bottom pattern
that is made at the bottom of the downtrend.
The Double Bottom is defined as having two
bottoms at a price point equal to or identical.
Just as with the Double Top pattern, you can
enter either at the "neckline" break or at its retest.
Double Bottom Pattern Chart Pattern 2020
Flags are technological patterns that can be understood
as a pause in the trend that underlies.
Following a rapid market pattern, flags are spotted as
consolidation, and they signify the continuation after the breakout.
We have a Bull and Bear flags, just as with all map trends.
Bear Flag Chart Pattern 2020
Bull Flag Chart Pattern 2020
Classic chart patterns are one of the oldest sections of technical analysis and have been proved several
times as a practical way to assist technical traders in determining the next course of the market.
That being said, when making trade decisions, a trader
should not neglect the context and current market conditions.
Eva " Forex " Canares .
Cheers and Profitable Trading to All.
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The difference between wedge patterns and triangle patterns is simple: the trendlines in a wedge pattern point in the same direction. Ascending triangles have flat tops and a rising bottom. Descending triangles have flat bottoms with declining tops. Symmetrical triangles have a downtrend line and an uptrend line. Wedges are different. Rising wedges have a trendline both above and below price ... Now let's look at the bearish ascending wedge. Note that the top trendline is rising. Additionally the bottom trendline (rising bottoms) is rising. It's another battle between bulls and bears. The pattern is formed as each high is higher than previous and each low is successively higher as well. The difference being, the angle of ascent is steeper on the rising bottoms line. The steeper of the ... How to Trade the Wedge Pattern Between 60% to 70% of the time, the wedge patterns are likely to break in the direction of the prevailing trend. Therefore, there is a considerable success rate, given how often this pattern can appear on Forex charts. When it comes to trading the wedge pattern, the number one rule is to always wait for the ... The forex rising wedge (also known as the ascending wedge) pattern is a powerful consolidation price pattern formed when price is bound between two rising trend lines. It is considered a bearish ... ascending triangle. descending triangle. head and shoulders (+inverse) cup and handle (+inverse) wedge (falling & rising) rectangle. flag. pennant. double top / double bottom . triple top / triple bottom. forex chart patterns cheat sheet. using this book to your advantage. buy. contact. how to trade wedge (falling and rising) chart pattern in-depth tutorial. home; articles; forex chart ... Ascending Broadening Wedge. The Ascending Broadening Wedge is a common chart pattern that I love to trade. Contrary to the Rising Wedge, in which price action contracts as the pattern matures, the Ascending Broadening Wedge widens as the two trend lines that have formed diverge from one another. In a Wedge chart pattern, two trend lines converge.. It means that the magnitude of price movement within the Wedge pattern is decreasing. Wedges signal a pause in the current trend.. When you encounter this formation, it signals that forex traders are still deciding where to take the pair next.. A Falling Wedge is a bullish chart pattern that takes place in an upward trend, and the lines ...
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This is an example of a real Forex trade where Damyan trades the full potential of a Rising Wedge chart pattern. License Creative Commons Attribution license (reuse allowed) Here’s the deal: I’m not a chart pattern trader. However… The Ascending Triangle chart pattern is one of the few patterns I trade. Why? Because when other tr... 3 Most Reliable Bullish Chart Patterns FOR STOCKS AND FOREX TRADING PATTERN 1: FLAG/PENNANT PATTERN 2: ASCENDING TRIANGLE PATTERN 3: WEDGE PATTERN. Chart Patterns to Predict Price Action for Forex, CFD & Crypto - Duration: 32:08. Investor Trading Academy 10,382 views. 32:08. How to Trade the Ascending or Rising Wedge Chart ... ascending broadening wedge!! great chart pattern to have in your toolbox! going through all the characteristics of this chart pattern! A video tutorial designed to teach you how to spot and trade the Rising Wedge Chart Pattern. Subscribe To This Channel For More Technical Analysis & Stock Tr...