Forex Zone - Forex Forum

Variety of Chart Pattern Have you heard the term Triangle? Or Head & Shoulder? O

Discussion started on Forex Education

  • Jr. Member
  • Posts: 76
  • Points: -5
  • Likes Received: 26
  • Reputation: +1/-0
Variety of Chart Pattern
Have you heard the term Triangle? Or Head & Shoulder? Or has it never been at all? Indeed, the understanding of Pattern Charts varies. To be easy to remember, Chart Patterns are generally categorized into two types:

A. Reversal Pattern
This price pattern signals that prices have a high probability of reversing from the previous major trend. That is, the price patterns in this category can provide an initial signal when you can sell at the highest price point or buy at the lowest price level. Very profitable, right?


Double Top and Double Bottom

This price pattern includes one price pattern with the highest occurrence frequency, because the formation is easily recognizable. The Double Top Formation indicates that prices tend to slow down when they reach their peak.

Double Top is the Bearish version, while the Bullish version is Double Bottom.


chart pattern, double top



Triple Top and Triple Bottom

This price pattern is a variant of the previous price pattern. The difference is, the accuracy of this pattern is slightly higher because the price shows a strong reaction at the point of Resistance or Support.


chart pattern, triple bottom



Head and Shoulder

The first and second shoulders are smaller than the head as an indication of the weakening of the momentum to keep the price to its highest point (Head). Once the price starts to break through the neckline, you can execute Sell orders.

The Head And Shoulder pattern also has a Bullish version, namely Inverted Head And Shoulder.

chart pattern, head and shoulder



Falling Wedge

Understanding the Chart Pattern is quite simple; if prices have begun to appear to converge down, there is a potential that prices will turn up. The Falling Wedge also often appears on the price chart.


 chart pattern, falling wedge



Rising Wedge

Simply put, this price pattern is a Bearish version of the Falling Wedge. If prices converge upwards, there is potential if later the market will retaliate with a sell-off action.


chart pattern, falling wedge



Rounding Bottom

Compared to other reversal patterns, this one pattern is quite rare. The reason is, the Rounding Bottom formation requires a lot of candlesticks, so we can be sure this price pattern is designed for long-term trading.


chart pattern, rounding bottom



Bump And Run

This chart pattern is actually also quite often popping up on the chart. It's just that, still not many people recognize this pattern. In fact, the formation is simple and quite promising.


 chart pattern, bump and run



B. Continuation Pattern
Unlike the Chart Pattern Reversal patterns, this time the price pattern gives the signal that the trend will still continue even though it has reversed direction. This is quite common especially because market movements often experience retracement.



At first glance, the price formation of this pattern is similar to the Trendline Channel tool. It's true, Flag and Channel Trend patterns are often used by traders to keep an eye on the potential breakout of the Resistance or Support limits (diagonal lines).


chart pattern, flag




The Pennant pattern highlights the potential for price movements to break the price after the consolidation period. At first glance this pattern is similar to the Wedges pattern, but the location of the difference is the degree of slope. The Wedge pattern will lean in one direction, while the Pennant Pattern is almost symmetrical.


chart pattern, pennant


Symmetrical Triangle

This pattern also looks almost similar to the Pennant pattern, so what's the difference? In comparison, this pattern usually requires more candlesticks to complete the formation. For example Pennant can be formed from just a few candles, then the Symmetrical Triangle pattern can take twice the total candle to complete the formation.

Second, compared to the Pennant pattern, this pattern can be said to be more "wishy-washy", because prices can breakout up or down.


chart pattern, symmetrical triangle



Ascending Triangle

Note the difference in this Chart Pattern with the previous equilateral triangle pattern. In the Ascending Triangle pattern, prices converge upwards, but continue to hit the same Resistance range. Once the price breaks the Resistance, a strong Buy signal appears.


chart pattern, ascending triangle



Descending Triangle

If the Ascending Triangle implies a Buy signal. Conversely, the Descending Triangle pattern indicates a selling opportunity after the price has broken through the Support.


chart pattern, descending triangle




Well, if prices bounce back and forth, it is unclear which Top and Bottom, you might be having a Rectangle price pattern.


 chart pattern, rectangle



Cup With Handle

Are you thirsty for profit? Beat your thirst by drinking the benefits of the Pattern Chart with this cup-like shape. This price pattern is similar to Rounding Bottom, but the location of the difference is that there is con

#1 - February 05, 2019, 06:24:57 AM

Global Moderator
  • Newbie
  • Posts: 32
  • Points: 1158
  • Likes Received: 12
  • Reputation: +3/-0
Copy-paste right?

Please provide an example for each template, or it will be removed and you will get a warning.
#2 - February 05, 2019, 08:06:19 AM

  • Jr. Member
  • Posts: 95
  • Points: -5
  • Likes Received: 16
  • Reputation: +0/-0
I often hear this type of technique and I also like to apply it to my trading style, and I also like to determine open positions with this technique, this technique is easy to understand by me
#3 - February 05, 2019, 11:09:35 AM

  • Hero Member
  • Posts: 1254
  • Points: 102
  • Likes Received: 174
  • Reputation: +70/-0

We recommend that this kind of thread must include an image for the example, so that the reader can easily understand it and can immediately practice it. If it's just writing like this it doesn't feel right and it seems to be a less useful thread. Though this pattren material is very interesting because it is often used by experienced traders
#4 - February 06, 2019, 07:10:07 AM

Global Moderator
  • Newbie
  • Posts: 32
  • Points: 1158
  • Likes Received: 12
  • Reputation: +3/-0
Copy-paste right?

Please provide an example for each template, or it will be removed and you will get a warning.
You have had enough time to correct this message. Instead, I see a lot of new posts.

You get a ban for 2 days!
#5 - February 06, 2019, 11:23:15 AM

  • Hero Member
  • Posts: 691
  • Points: 2060
  • Likes Received: 41
  • Reputation: +2/-0
the head and shoulder pattern is usually used for reversal of direction and is very effective and the most effective in my opinion as long as I use all patterns so it is shaped like a shoulder and neck sandal can use the Open position when there is confirmation
#6 - September 09, 2021, 09:43:26 AM

  • Hero Member
  • Posts: 3144
  • Points: 7493
  • Likes Received: 631
  • Reputation: +39/-36
This pattern clearly indicates the presence of reversal, so we can open positions with the opposite trends
#7 - June 01, 2022, 05:03:03 AM

  • Hero Member
  • Posts: 2167
  • Points: 2732
  • Likes Received: 2
  • Reputation: +0/-11
A reversal pattern in forex trading refers to a specific chart formation that indicates a potential change in the prevailing market trend. Here's an explanation:

A reversal pattern occurs when the price of a currency pair shows signs of reversing its current direction and potentially moving in the opposite direction. These patterns are derived from the analysis of historical price data and are used by traders to identify potential trading opportunities.

Reversal patterns can signal a shift in market sentiment and can be found in both uptrends (bullish reversal patterns) and downtrends (bearish reversal patterns). Some common reversal patterns include double tops and bottoms, head and shoulders, wedges, and triangles.

When traders spot a reversal pattern, they interpret it as a potential indication that the current trend may be losing momentum or coming to an end. It suggests that the balance between buying and selling pressure is shifting, which could result in a reversal or a significant correction in price.

Traders often look for confirmation signals to validate the reversal pattern. This can include observing changes in trading volume, analyzing other technical indicators, or waiting for a breakout of key support or resistance levels.

Reversal patterns are valuable tools for traders as they provide insights into potential trend changes, allowing them to adjust their trading strategies accordingly. Traders may use these patterns to enter new positions, exit existing ones, or adjust stop-loss levels.

However, it's important to exercise caution when trading reversal patterns. Not all patterns are equally reliable, and false signals can occur. Traders should always consider the overall market context, conduct thorough analysis, and use risk management techniques to protect their capital.

By studying and recognizing reversal patterns, traders can gain a deeper understanding of market dynamics and improve their ability to identify potential trend reversals. It's essential to combine reversal patterns with other technical and fundamental analysis tools to make well-informed trading decisions in the forex trading industry.
#8 - June 01, 2023, 03:23:05 PM


0 Members and 1 Guest are viewing this topic.