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Old 02-14-2017, 08:48 AM
adamsmiths adamsmiths is offline
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Default Top three reliable chart pattern in the forex market

There are many different ways of trading the financial instrument in the forex market. Those who are trading the forex market for a long period of time have developed unique sets of skills to trade the financial instrument in the market. Most of the novice traders in the financial market tends to trade the market with the help of indicators. They often mess up their charts by using too many indicators. They simply think that taking too many signals from different types of indicators will increase their potential profit in the market. But when it comes to real life trading they find that too many indicators simply increases the potential risk in trading. If you truly want to become a professional trader in exchange traded funds then itís highly imperative to use the key support and resistance level to trade. In fact, the professional traders use the different types of chart pattern to trade the market. Chart pattern trading is considered to be the most advanced and profitable form of trading in the financial market. In this article, we will discuss the top three reliable chart pattern in the forex market.

Head and shoulder chart pattern: Among the different types of chart pattern in the forex market head and shoulder chart pattern is one of the most popular chart patterns in the professional traderís community. Those who are in involved in exchange-traded funds use this pattern as a bearish reversal signal in the market. The pattern is generally formed in the last stage of an uptrend and it gives the traders a clear indication of a bearish trend change in the market. The pattern is three peaks. The first peak is known as the left shoulder after that second peak which is the highest peak is known as the head of this pattern and followed by the head forms the last peak which is known as the right shoulder. Once the price breaks the neckline of this pattern professional traders execute their short orders in the market to ride the new bearish trend in the market.

Triangle chart pattern: Triangle chart pattern is also very popular in the exchange traded funds community. All the professional traders trade in favor of the long-term prevailing trend in the market once the pattern is formed in the chart. Most of the novice traders in the financial industry fail to trade this pattern since they draw this pattern in the lower time frame. But in order to make a decent profit by this system, you must find the triangle chart pattern in the higher time frame. Price generally seizes its movement in the market and forms the triangle chart pattern. Once the market breach the triangle support or resistance level the traders execute their trade in the direction of the breakout. There are two methods of trading the breakout of this pattern. The aggressive traderísinvolved in exchange traded funds directly execute their orders in the market once the price breaks the triangle support or resistance level. On the contrary, the conservative traders execute their trade on the minor retracement of the market. As a full-time trader, you should know that almost 90 percent of the time the breakout occurs in favor of the long-term prevailing trend in the market.

Rectangle chart pattern: The rectangle chart pattern is most popular among the new traders in the financial industry. Most of the novice traders use these pattern since the market remains in a sideway direction. In general, the price of certain assets is confined in the rectangular region and the traders trade the region with perfect reward ratio. The best way to trade the triangle chart pattern is by using the price action confirmation signal. If you trading with a reputed forex broker then you will have a high-end trading platform to trade the exchange-traded funds in the market.as a trader, you will be looking for potential bearish and bullish price action confirmation signal to trade the rectangle support and resistance level. All the professional traders stay away from the rectangle chart pattern trading prior to high impact news release in the market since most of the time the breakout occurs at the moment. While you trade the rectangle chart pattern in the market make sure that you use the higher time frame to draw this pattern on your trading chart.

In summary, Chart pattern trading is considered to be one the most profitable trading system in the forex market. If you want to catch the large moves of the market then itís extremely important that you use different types of the chart pattern. As a trader, you should always use the higher time frame in the market to draw the chart pattern since it will greatly reduce the false signals in the market. If you know price action trading strategy then try to use price action confirmation signal while trading the chart pattern since it will give you a better winning edge in the market.
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Old 07-21-2020, 07:04 AM
Valz Miky Valz Miky is offline
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Default Re: Top three reliable chart pattern in the forex market

Thank so much for sharing this information and from tomorrow I will use it to my FreshForex broker hope it will work for me. Though most of the time I did news trading this is the first time I am going to trade via chart pattern. However, one question that can I follow any signal in between this strategy?

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