Forex chart patterns
Chart patterns are price movement patterns that have predictive value. These patterns reflect the interaction between bulls and bears in the market. As this interaction is guided by the laws of human mass behaviour (or crowd trading psychology), which are constant, the resulting price patterns will often have a recognisable shape and will generally lead to predictable price movements.
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.
