Forex chart patterns

The purpose of technical analysis of chart patterns is to identify forex price movements that repeat frequently over time. Typically, a forex trader will spot the formation of a known chart pattern and will then place an order based on the price's expected exit from the pattern. These patterns are classified into two categories: reversal patterns and continuation patterns after a period of consolidation.

Based on historical statistics, triangle figures are the most profitable. Here are some common chart patterns in the currency exchange market.

	Triangles		Symmetrical broadening wedge
	Wedges		Broadening wedges
	Flags and pennants		Right-angled broadening wedge
	Head and shoulders		Double (or triple)  tops (or bottoms)
	Rectangles		Cup with handle