Classic patterns in PFOREX Assist
Eighty First session – PFOREX Assist Tutorial
Welcome back to Forex professional training.
In this session we will review;
- The available Classic Chart patterns in PFOREX Assist
- Trading examples of Classic Chart patterns
Available classic chart patterns in PFOREX Assist
The patterns that we will review are as follows;
There are numerous classic chart patterns with different structures. While some of them are popular due to simple shape, some other are complicated that are hard to find on the chart price. The implemented classic patterns by PFOREX R&D team have the best performance among entire patterns to deliver the most reliable strategies for higher success rate. The courses in education section include all required information that traders must know before trading by classic chart patterns.
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Trading with classic chart patterns
The classic chart patterns can be divided into two main categories; Reversal & Continuation. The provided strategies include both formats to meet all trading preferences. Now let’s check the specifications classic patterns strategies:
- Market State: Range & Trend market
- Market Symbols: All
- Time-frames: All time frames
- Entry Price
- Buy Order: Breaking the Neckline or resistance line toward up
- Sell Order: Breaking the Neckline or support line toward bottom
- Stop Loss
- Buy Order: Half of or same as Height of pattern over Entry price
- Sell Order: Half of or same as Height of pattern below Entry price
- Take Profit
- Buy Order: Below the Head of Head & Shoulders, Below the valley of Double Bottom, Below the last valley of Pennant, Triangle, Flag and Wedge
- Sell Order: Over the Head of Head & Shoulders, Over the peak of Double Bottom, Over the last peak of Pennant, Triangle, Flag and Wedge
- Confirmations
- Reversal: Divergence/Convergence – Stochastic & RSI overbought/oversold conditions
- Continuation: Special Candlesticks – Hidden Divergence
And now we will check some examples of each pattern.
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Double Bottom pattern
After a long downward trend, a double bottom pattern has formed in which the neckline is a horizontal line on the peak between two valleys. In case that price crosses the neckline toward top, then this signal becomes active. The height of this pattern is a vertical space between the peak and the deepest valley in this pattern.
The top left info table determines the entry and exit prices as well as other major data. Traders can find helpful information regarding this pattern in educational courses.
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Double Top pattern
At the end of the bullish trend, a double top pattern is detected on EURAUD symbol in H1 time frame. The entry is set just below the neckline, which is the horizontal line on the last valley. With help of other confirmations, traders can place a sell order after the price passes the Entry price toward bottom.
Further information regarding this pattern with more examples are available in educational courses.
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Flag pattern
The first continuation pattern that we will talk about is Flag. This pattern has suitable ratio of Reward to Risk due to its structure and Take profit to Stop Loss ratio. After a bearish trend, the price has oscillated inside a channel. It is speculated that after the price breaks the support line, it would fall until Take Profit prices. The support line is the line that connects the valley in this pattern.
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Head & Shoulders pattern
On bullish trend, price has formed 3 waves in which the 1st one is left shoulder while the 2nd one is the head of this pattern. After price formed the right shoulder, a neckline is formed by connecting the valleys in this pattern to determine the Entry Price. Due to upward slope of the neckline, this pattern has better structure and higher strength.
The signal will become active for trading if the price breaks out the neckline and passes the Entry Price. The other signal information are shown in the top left table.
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Pennant pattern
This continuation pattern that is formed from a shaft and Triangle pattern. The ascending Support line is formed by connecting the valleys, hence the pattern has good structure with higher success rate. The Stop Loss price is just over the last swing. After price breaks out the support line and passes the Entry Price, then this signal will become active.
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Triangle pattern
This pattern has three types; ascending, descending and symmetrical. This continuation pattern is developed for higher performance and success rate by which the continuation signals will be generated. Due to the ratio of reward to risk, this pattern will provide reliable signals and analysis. The stop Loss price is just below the last valley while there are two Take Profit prices. The resistance line is formed by connecting the peaks of this pattern to specify the Entry Price.
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Wedge pattern
One of the best reversal pattern that forms at the end of a trend to show the reversal spots. It is speculated that the price bounces back with sharp and fast movement. In this example, after a bearish trend a wedge pattern is formed by some downward oscillation. The resistance line is developed by connecting the peaks to specify the Entry Price. The Stop Loss is set just below the last valley.
Notices
For further information, you can find highly reliable trading courses in education section.
These developed patterns on PFOREX Assist will be detected on all trading symbols and time frames.
You can download PFOREX Assist app for iOS and other platforms devices to receive these signals instantly, however I have to insist that all the services provided PFOREX are as information, not as suggestion nor advice.
That concludes this session, until next time and another session, take care.