Chart patterns: These are graphical shapes that form often in forex with price movement from one direction to another. Chart patterns are different from Candlestick patterns.
Chart patterns give us signals of where the price movement will go next. As a trader, you need to be able to spot the Chart patterns on your tradingview platform because they’re potential trade signals, We have 3 types of Chart patterns.
TYPES OF CHART PATTERNS
1. Reversal Chart Pattern
2. Continuation Chart Pattern
3. Bilateral Triangles Chart Pattern
Here we have a reversal chart pattern called Head and Shoulder's
1.Head & Shoulders: This is a reversal chart pattern. You look for it in an uptrend as a bearish reversal signal to go short/sell.
You will enter head and shoulder pattern by:
1. Drawing a neckline connecting the base of the two shoulders.
2. Enter the trade (Short) after a candlestick breaks the neckline to the downside.
3. Set your stop loss below the apex of the right shoulder.
4. Your profit target will be the distance between the apex of the head and the neckline. That will be the distance between your entry and your profit target.
Chart patterns give us signals of where the price movement will go next. As a trader, you need to be able to spot the Chart patterns on your tradingview platform because they’re potential trade signals, We have 3 types of Chart patterns.
TYPES OF CHART PATTERNS
1. Reversal Chart Pattern
2. Continuation Chart Pattern
3. Bilateral Triangles Chart Pattern
Here we have a reversal chart pattern called Head and Shoulder's
1.Head & Shoulders: This is a reversal chart pattern. You look for it in an uptrend as a bearish reversal signal to go short/sell.
You will enter head and shoulder pattern by:
1. Drawing a neckline connecting the base of the two shoulders.
2. Enter the trade (Short) after a candlestick breaks the neckline to the downside.
3. Set your stop loss below the apex of the right shoulder.
4. Your profit target will be the distance between the apex of the head and the neckline. That will be the distance between your entry and your profit target.