Forex Market Chart Pattern
In the world of trading, there is one technical analysis technique that is a favorite and mainstay of traders. The analysis technique is chart pattern analysis. A chart pattern or chart pattern is a price chart pattern that occurs repeatedly in the market, making it easy for traders to recognize. Chart patterns are used as the basis for technical analysis in trading forex, commodities, etc. A pattern is identified by a line connecting price points, such as a closing price, high or low, over a certain period of time.
Price movements in charts tend to repeat themselves and form the same pattern, so traders can predict future price movements by looking at price history that has formed in the past. Each pattern has a different shape and meaning. Chart patterns can be useful for traders to predict prices will continue or even decline. This technique can also be useful for finding potential entry points. Mastering the chart pattern technique is one of the easiest analyzes in a trading strategy without indicators. These are the types of chart patterns that traders should know:
Continuation Patterns
Continuation patterns are considered as pauses during a trend, either up or down. When a price pattern forms and continues to follow the trend, it is known as a continuation pattern.
This chart pattern appears as a signal for the continuation of the price from the previous trend. The chart pattern technique in the continuation pattern is very useful for filtering signals that identify a temporary correction of the main trend. In other words, after the pattern finishes forming, the price will most likely return to the previous main trend.
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