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Forex Trading Patterns Guide

The document provides a comprehensive guide to Forex trading patterns, detailing various candlestick and chart patterns. Key candlestick patterns include Bullish and Bearish Engulfing, Doji, and Hammer, while chart patterns include Head and Shoulders, Double Top/Bottom, and Triangles. Each pattern indicates potential market reversals or continuations, essential for traders to understand market movements.

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30 views2 pages

Forex Trading Patterns Guide

The document provides a comprehensive guide to Forex trading patterns, detailing various candlestick and chart patterns. Key candlestick patterns include Bullish and Bearish Engulfing, Doji, and Hammer, while chart patterns include Head and Shoulders, Double Top/Bottom, and Triangles. Each pattern indicates potential market reversals or continuations, essential for traders to understand market movements.

Uploaded by

girmayonas41
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Forex Trading Patterns Guide

Candlestick Patterns (Detailed)


1. Bullish Engulfing: A small red candle followed by a larger green candle that completely 'engulfs'

the red one - indicates reversal to the upside.

2. Bearish Engulfing: A small green candle followed by a larger red candle - indicates reversal to the

downside.

3. Doji: Open and close prices are nearly equal. Signals market indecision.

4. Hammer: Small body, long lower wick. Appears at the bottom of downtrends - bullish signal.

5. Shooting Star: Small body, long upper wick. Appears at the top of uptrends - bearish signal.

6. Morning Star: A three-candle pattern - bearish candle, small candle (can be bullish or bearish),

and a strong bullish candle - indicates bullish reversal.

7. Evening Star: The opposite of a Morning Star - indicates bearish reversal.

8. Spinning Top: Small body, long upper and lower wicks - shows indecision.

9. Tweezer Bottom/Top: Two or more candles with similar highs/lows - indicates potential reversal.

10. Marubozu: A long candle with no wicks - shows strong trend in the direction of the candle.

Chart Patterns (Detailed)


1. Head and Shoulders: A peak (shoulder), followed by a higher peak (head), and another lower

peak (shoulder) - bearish reversal pattern.

2. Inverse Head and Shoulders: Opposite of above - bullish reversal pattern.

3. Double Top: Two peaks at the same level - bearish reversal.

4. Double Bottom: Two troughs at the same level - bullish reversal.

5. Ascending Triangle: Flat top and rising bottom - bullish continuation.

6. Descending Triangle: Flat bottom and falling top - bearish continuation.

7. Symmetrical Triangle: Converging trendlines - breakout can be in either direction.

8. Flag: Small rectangle formed after a strong move - signals continuation in the same direction.
9. Pennant: Small symmetrical triangle - continuation pattern.

10. Wedges (Rising/Falling): Can be either reversal or continuation depending on context.

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