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|
|Flags and pennants||Right-angled broadening wedge|
|Head and shoulders|| Double (or triple)|
tops (or bottoms)
|Rectangles||Cup with handle|