Patterns – Reversal and Continuation Patterns
Twenty Ninth session of Forex Training
Welcome back to Forex professional training in financial markets.
In this session Patterns – Reversal and Continuation Patterns will be discussed.
Patterns are the most widespread issue in technical analysis.
The direction and the amount of each trend can be analysed using patterns, so a trader can speculate future trend direction plus target price.
Due to their geometric shapes a trader can draw and analyse them easily.
There are different types of patterns:
Reversal patterns are formed on the return points of trends, where news, events and financial issues may change trend direction.
Here are some Examples of those patterns:
- Reversal Head and Shoulder
- Double Top and Double Bottom
- Triple Top and Triple Bottom
- Rising Wedge and Falling Wedge
Rising and Falling Wedge are very useful and powerful patterns traders can use.
Another type of pattern is Continuation pattern, which indicates the agreeing direction with current trend direction.
Some Continuation patterns are as follows:
Traders must consider the differences between Continuation Head and Shoulder with Reversal Head and Shoulder.
Each pattern will be discussed thoroughly in future sessions.
That concludes this session, until next time and another session take care.