Archive for July 26th, 2007
Fibonacci – Fibonacci Retracements
Posted on26. Jul, 2007 by admin.
The price movement of any financial market is in wave format. Suppose a currency pair is on an up-trend, going from 1.0000 to 1.1000. After reaches certain top “boundary”, 1.1000 for instance, it will retrace – meaning pull back down – before resuming its initial up-trend. Fibonacci Retracements are levels at which the market is [...]
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Forex Chart Patterns – Rectangles Chart Patterns
Posted on26. Jul, 2007 by admin.
The rectangle formation is often a very simple one to recognize. It is essentially a market that is trading in a range between two horizontal lines. The rectangle formation represents consolidation of the move that preceded it, creating a foundation for a continuation of a further move in the same direction.
The rectangle formation can be [...]
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Forex Chart Patterns – Wedges Chart Patterns
Posted on26. Jul, 2007 by admin.
The formation of wedges can signal breakouts in upward or downward trending markets. They are similar to triangles in terms of their application. The Wedge formation is a variation on the ascending or descending triangle in which both the angled sides of the triangle are sloping against the dominant trend in the market. The wedge [...]
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Forex Chart Patterns – Flags and Pennants Chart Patterns
Posted on26. Jul, 2007 by admin.
Flags and pennants are very short consolidation periods that appear within a fast moving trend. Both are preceded by a sharp move that is nearly a vertical line, and both show consolidation against the direction of the trend. The flag is a pattern formed by two parallel lines sloping against the trend, while the pennant [...]
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Forex Chart Patterns – Symmetrical Triangles Chart Patterns
Posted on26. Jul, 2007 by admin.
The symmetrical triangle has two equal sides sloping towards each other at the same angle. It favors neither a downside nor an upside breakout. As a result, traders should look for it to signal a continuation of the move in the original direction; or, in other words, the move of the overall trend.
The trade signal [...]
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Forex Chart Patterns – Descending and Ascending Triangles Chart Patterns
Posted on26. Jul, 2007 by admin.
Descending Triangles
The descending triangle is a triangular consolidation zone that has a hypotenuse sloping downward at the top of the triangle. Beneath the hypotenuse is a straight trend line. Generally, when the market breaks through this trend line, it is seen as a signal that sellers have the momentum in the market, and that shorting [...]
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Forex Chart Patterns – Saucers Chart Patterns
Posted on26. Jul, 2007 by admin.
The Saucer Bottom is a very slow developing pattern that does not have a clear entry point in most cases. It becomes the foundation for a long term uptrend, but it often gives no direct signal to buy. The saucer represents a gradual loss of momentum in a downtrend, followed by consolidation in a sideways [...]
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Forex Chart Patterns – Triple Tops and Bottoms Chart Patterns
Posted on26. Jul, 2007 by admin.
A triple top is the same charting pattern as the double top with an extra relative high that touches the same resistance level. A triple top creates a strong resistance level and a neckline connecting the two relative lows in the middle of the pattern. A trader should enter a short position when the daily [...]
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Forex Chart Patterns – Double Tops and Bottoms Chart Patterns
Posted on26. Jul, 2007 by admin.
The double top formation is a straightforward pattern that is easy to recognize on a chart. One of the features of a market in an uptrend is a series of increasing highs and relatively higher lows. If the market on one of its high points fails to break above the previous high, but instead stalls [...]
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Forex Chart Patterns – Head and Shoulders Chart Patterns
Posted on26. Jul, 2007 by admin.
Head and Shoulders Pattern
The Head and Shoulders pattern is one of the most famous reversal patterns and one that gives a clear signal and entry point. The head and shoulders in an uptrend consists of three relative highs: the first and last peaks are of nearly equal size and are the shoulders of the formation. [...]
