chart patterns trading strategies

the breakout above the flag. Chart Pattern Types, throughout this article series, were going to discuss how to make money with the most profitable chart patterns. For example, the narrative behind the bullish flag highlighted in Step #1 is quite easy to spot. Repetition is the mother of all learning and the more you trade the most profitable chart patterns the better youll become at spotting these chart patterns in real time.

If the consolidation is large compared to the impulse wave, the pattern is less effective. Figure that out, and once you have decided which way to go try master that particular trade setup. It is possible to build your trading strategies on chart patterns only. There are bullish and bearish chart patterns and what makes them work is that they tend to reoccur over time making it possible to backtest them and find their probability of success rate.

We can distinguish mainly two types of chart patterns: Continuation Patterns: minimal deposit forexchief signals that the trend will continue Reversal Patterns: signals the possible end of a trend and the start of a new trend. Some of the most profitable chart pattern trading strategies include: Earlier we posted a clear price chart of the EUR/USD but if you try and look more closely and read the chart patterns language we can identify some of the most profitable chart patterns (see. By trading the most profitable chart patterns youll be able to deduce who is winning this fight between the bulls and the bears. If the price breaks below triangle support (lower trendline then a short trade is initiated with a stop loss order placed above a recent swing high, or just above triangle resistance (upper trendline). Ideal options for short-sell stock trading strategies. Please leave a comment below if you have any questions about Chart Pattern Trading Strategy! Finding the proper direction to place your trades will help you to increase your win rate. As long as the candlesticks have the variable open, high, low and close; you can use them just to confirm your position or even entering a new trade. More market strategies for chart patterns: Find more on related pages. Step 3: What is the story behind the Chart Patterns? Chart patterns are a very popular way to trade any kind of markets because the most profitable chart patterns give us a visual representation of the supply and demand forces and also the relative strength of the specific price levels.

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