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Common chart patterns

What cashbackinforex the chart forexrebateindonesia in the market, buyers Forex rebate king sellers are always playing the game of power, the chart is a record of the results of this game people gradually found some typical chart patterns on the chart, with the help of them, people can clearly see the market is the buyer prevails or the seller is strong and, with these classic patterns over and over again, people find that the market always appears the same Therefore, we can use the experience of learning patterns to predict the future market trend, which is the pattern analysis Typical chart patterns include two types: reversal patterns and sustained patterns in this article, we will introduce the three most common chart patterns to understand how the pattern analysis is to predict Forexrebateking action, and how people can make trading decisions through pattern analysis  nbsp;Head and Shoulders and Head and Shoulders Bottom Head and Shoulders pattern is one of the most important patterns for traders, and is also one of the most common reversal patterns It generally forms gradually in an uptrend and sends a signal of market reversal That is, the appearance of a head and shoulders pattern often means the end of an uptrend A typical head and shoulders pattern is shown in the figure below:  When price rises and falls back to a fixed point, a peak is formed that looks like the left shoulder price then rallies again and creates a higher peak than the previous peak and falls back to the support level of the first peak, the new peak is called the head and the support level is called the cashback forex if the pattern is fully formed, price will rebound at the neckline and create a lower peak, which is the right Shoulders When you find a head and shoulders pattern on a chart, a potential entry point is when the price confirms a break below the neckline, that is, when the candle closes below the neckline and we open a sell position at the opening of the next candle More cautious traders may prefer to wait for the price to retest the neckline (that is, for the price to touch the neckline again upwards) and when the price breaks upwards through the neckline Of course, there are times when the price may start to head straight down after breaking the neckline, and whether or not you choose to trade more cautiously depends on the traders further observation of the market After the trade is opened, the profit target is usually set at the distance in pips from the head to the neckline Also, there may be times when you run into a head and shoulders pattern, which often A head and shoulders bottom occurs at the end of a downtrend and implies a greater likelihood of future price increases Head and shoulders bottom consists of a trough, followed by a lower bottom and a higher trough Similar to a head and shoulders top, the time to enter a head and shoulders bottom is when the neckline is confirmed to be broken by the price, or wait to see if the neckline will be retested The following chart shows a head and shoulders bottom pattern in the actual market:     nbsp;Double top and double bottom double top pattern often appears at the top of an uptrend, it is also an inversion pattern, which means the end of an uptrend double top pattern consists of two peaks next to each other, and the prices of the two peaks are similar the neckline of the pattern is located at the level of support formed by the price When the price falls below the level of support, that is, the neckline, we believe that the pattern has been formed & nbsp;In terms of entry timing, you can generally consider opening a sell position when the price falls below the neckline, or wait for the price to retest the neckline and form a lower peak to enter, once the retest has failed, it often means that the price has stronger downward momentum The profit target is set at the point distance from the top to the neckline The double top pattern reverses to a double bottom pattern, which often It appears at the end of a downtrend and consists of two valleys next to each other, and the valleys are similar in price The appearance of a double bottom often means that an uptrend will start next Likewise, we can either enter when the neckline is broken, or we can wait for a failed retest of the neckline and form a higher valley to enter when the failed retest of the neckline means that the price has more upward momentum   The flag pattern is different from the previously described head and shoulders and double top pattern, the flag pattern is in an uptrend or downtrend may appear in the finishing pattern because the price can not always be in a clear uptrend or downtrend, sometimes it will take a break to finish this time you will find the price repeatedly oscillating, and then back to the previous trend in the  The above chart is a flag in an uptrend, the price Before the consolidation is an upward trend along the top and bottom of the consolidation trajectory draw parallel lines, you get a flag shape The above chart flag trend as an example, when the price breaks through the top of the flag line, you can consider entering to open a buy position or you can also wait for the price to retest the flag line and create a higher trough before entering, this higher trough increases our trading profitability The following chart shows the flag pattern in the actual market uptrend After the first wave of the uptrend is completed, prices are always consolidated in the flag pattern and eventually break through the top flag line to start the second wave uptrend The above can be used as your introduction to further study You will learn more about different types of chart patterns in the future
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