Trading Classic Chart Patterns The Easy Way Charting has always been used as a way to analyze and prediction for forex and is part of technical analysis for trading classic chart patterns. It is based exclusively on the study of patterns by trend lines plotted on a price chart and candlestick chart formations.
The Three Principles Of Trading Classic Chart Patterns Charting has three principles which are: 1)
All factors or elements that affect the currency pair are reflected in price
2)
Price always move in trend
3)
Patterns created from price movements are always repeating itself
A trader that studies the price will be able to identify clearly the trend of a particular currency pair and anticipate its changes as well. Therefore, future probable behavior can be predicted. The problem is that although traders may be able to identify these patterns but trading classic chart patterns require some skill and patience which most traders struggles with. Common Patterns Used In Trading Classic Chart Patterns Here we will list a few when trading classic chart patterns and recommend how a trader can trade them in a easy way. Reversal Patterns Double tops or bottoms Head and Shoulders/ Inverted Head and Shoulders Falling and Rising Wedges These formations are normally trend reversal patterns that are highlighted by the breaking of key support of resistance levels caused the formation of the pattern.
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