chart pattern forex strategy

uses one of the most classical chart trading patterns used by hedge fund managers. The formation of a bullish pennant pattern shows a period of market consolidation a breakout of this bullish pennant chart formation should breakout to the upside continuing the original uptrend. Remember that technical analysis is not a perfect science and there are no guarantees, so theres no sense to risk losing an unrealized gain of 500 pips in order to make an extra 50 pips in profit. For a bearish pennant chart pattern to form, there has to be an existing downtrend. By 2010, I had not only become proficient in trading them, but I had also developed the intuition necessary to identify the most profitable formations something that can only be had after years of practice. This write up will not be like other blog articles you have read because we are going to give step by step instructions on how to place trades using the exact price pattern for the the strategy. And when it comes to wedge patterns, timing is everything. Thats something that you need to gain over a period of time. If you are not paying attention or not really focused on looking for this chart pattern, you may miss it because it does take a little bit of skill to identify it and trade it successfully. Note* The reason why many price action traders fail is because they dont follow this first rule and they try to trade every pattern regardless of the whole picture. For a bullish pennant chart pattern to form, there has to be an existing uptrend.

In order to be considered valid, the two shoulders of the pattern must overlap at some point. The whole idea is to become very selective on the chart patterns you trade. As the name implies, the wedge is a technical pattern in which price moves into a narrowing formation, also called a triangle. These types of patterns will allow you to trade any currency pair and the trades are not dependent in bitcoins investieren wo upon market trends or the economic calendar to find successful trades in your day trading. Are you ready to start using the chart patterns above? Currency Pairs: Any, forex Indicators: none required, nEED TO have some clarity here.