Author: misamaliraza94
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How to Calculate Pivot Points
The first thing you’re going to learn is how to calculate pivot point levels. The pivot point and associated support and resistance levels are calculated by using the last trading session’s open, high, low, and close. Since forex is a 24-hour market, most forex traders use the New York closing time of 5:00 pm EST…
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What Are Pivot Points?
What are pivot points? Professional traders and market makers use pivot points to identify potential support and resistance levels. Simply put, a pivot point and its support/resistance levels are areas at which the direction of price movement can possibly change. The reason why pivot points are so enticing? It’s because they are OBJECTIVE. Unlike some of the other indicators that we’ve…
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Chart Patterns Cheat Sheet
Like we promised, here’s a neat little cheat sheet to help you remember all those chart patterns and what they are signaling. We’ve listed the basic classic chart patterns, when they are formed, what type of signal they give, and what the next likely price move may be. Check it out! CHART PATTERN FORMS DURING TYPE OF…
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Know the 3 Main Groups of Chart Patterns
That’s a whole lot of chart patterns we just taught you right there. We’re pretty tired so it’s time for us to take off and leave it to you from here… Just playin’! We ain’t leaving you till you’re ready! In this section, we’ll discuss a bit more about how to use these chart patterns to your…
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How to Trade Triangle Chart Patterns
A triangle chart pattern involves price moving into a tighter and tighter range as time goes by and provides a visual display of a battle between bulls and bears. The triangle pattern is generally categorized as a “continuation pattern”, meaning that after the pattern completes, it’s assumed that the price will continue in the trend direction it was moving…
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How to Trade Bearish and Bullish Pennants
Similar to rectangles, pennants are continuation chart patterns formed after strong moves. After a big upward or downward move, buyers or sellers usually pause to catch their breath before taking the pair further in the same direction. Because of this, the price usually consolidates and forms a tiny symmetrical triangle, which is called a pennant. While…
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How to Use Rectangle Chart Patterns to Trade Breakouts
A rectangle is a chart pattern formed when the price is bounded by parallel support and resistance levels. A rectangle exhibits a period of consolidation or indecision between buyers and sellers as they take turns throwing punches but neither has dominated. The price will “test” the support and resistance levels several times before eventually breaking out. From there, the price could trend in…
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How to Trade Wedge Chart Patterns
In a Wedge chart pattern, two trend lines converge. It means that the magnitude of price movement within the Wedge pattern is decreasing. Wedges signal a pause in the current trend. When you encounter this formation, it signals that forex traders are still deciding where to take the pair next. A Falling Wedge is a bullish chart pattern that takes place in an…
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How to Trade the Head and Shoulders Pattern
The head and shoulders chart pattern is a reversal pattern and most often seen in uptrends. Not only is “head and shoulders” known for trend reversals, but it’s also known for dandruff reversals as well. ? In this lesson, we’ll stick to talking about trend reversals and leave the topic of dandruff for another time. Head and Shoulders A…
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How to Trade Double Tops and Double Bottoms
When a double top or double bottom chart pattern appears, a trend reversal has begun. Let’s learn how to identify these chart patterns and trade them. Double Top A double top is a reversal pattern that is formed after there is an extended move up. The “tops” are peaks that are formed when the price hits a certain level…