Head & Shoulders

The Head and Shoulders chart pattern is a trend reversal formation. It is most prevalent (and reliable) in uptrends. As the market starts to slow down, and bulls and bears a fighting for dominance, the price forms a peak (shoulder), followed by a higher peak (head), and then another lower peak (shoulder). If you connect the lowest two troughs, a so-called neckline will be formed. It doesn’t have to be horizontal to be called a neckline. Unlike the best forex broker amateur forex brokers and traders frequently have a problem with identifying this chart pattern because of inclined necklines, so it's imperative to learn forex before you start trading. The pattern is complete when the forex market breaks the neckline, therefore we deem it appropriate to place pending orders to enter the market just below the neckline. When a forex currency pair goes through the neckline on negligible volume, you could witness a wave up. Of course, don't take this for an absolute truth; it might not happen sometimes. After the wave up, you could observe the increasinf force of mounting selling pressure when the forex rate plummets with greater volume.So head & shoulders is not just a shampoo.

Double Top

This is another forex reversal chart pattern. It is formed after an extended uptrend. A resistance level has not been broken once, the price comes down, and then the bulls attempt breaching it for a second time. If the attempt is unsuccessful, the price will jump down from that level again. That’s called a Double Top. The pattern is complete when the forex market breaks the neckline, so we deem it a good idea to place pending orders to enter the market just below the neckline. Wow, hope you got the clues.


Double bottom

It doesn’t take a rocket scientist to guess correctly that this forex chart formation is simply a reverse Double Top. This pattern takes place after an extended downtrend when two bottoms have been formed. After the second bottom forms, the whole pattern looks like a sign that the bearish pressure is pretty much finished, and that a reversal is about to take place. In this situation, so we deem it a good idea to place pending orders to enter the market just above the neckline. Ohh, it's the same shit as Double top.

Symmetrical triangle

Symmetrical triangles are forex chart patterns where the slope of the priceline’s highs and the slope of the priceline’s lows come together into a point. The whole thing looks like a triangle. Basically, the forex trading market keeps making lower highs and higher lows, and gets itself in a corner, so to speak, at which point the price will burst out – either upwards or downwards. Who knows what direction the breakout will be? Search us! But we surely know that the forex brokers market is gonna break out. What Triangles got such powers.

Ascending Triangle

Ascending triangles are similar to the symmetrical ones, with the difference that there is no lower highs, but a constant line of resistance that is regularly attacked by the bulls and not yet broken. Of course, as in the symmetrical triangles the bottom part of the ascending triangle has an upward slant. The fact that the triangle is ascending, that is, going up, doesn’t necessarily mean that the breakout will be on the upside even if you hear the best forex broker say that. It could be either way. In any case, we think it’s a good idea to place your entry orders above the higher lows and above the resistance line. Ohh another triangle again down there.

Descending Triangle

Descending triangles are similar to the symmetrical ones, with the difference that there is no higher lows, but a constant line of support that is regularly attacked by the bears and not yet broken. The fact that the triangle is descending, that is, going down, doesn’t necessarily mean that the breakout will be on the downside, even if some forex brokers might want to have you think like that. It could be either way. In any case, we think it’s a good idea to place your entry orders above the lower highs and below the support line. Ahh, finally I am done.

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