Chapter 14, Part I. Basic chart patterns. Page 2

Commander in Pips: These patterns have the same purpose as candlesticks. They could be divided into two major groups – continuation patterns and reversal patterns. So, depending on the particular pattern it could warn you about further price action in advance. That’s simple. But currently, some patterns could be used with additional and advance ways to analyze them – you know I like it. So, I will show you the modern approach to the trading of classical pattern.

Pipruit: So, and what are these patterns?​

Commander in Pips: Their amount is not as big as candlesticks ones:

1. Double top or Double bottom;

2. Head and Shoulders (H&S) and Inverse H&S;

3. Rising and falling Wedges;

4. Bullish and Bearish Rectangles;

5. Bullish and Bearish Flags and Pennants;

6. Different types of Triangles – Symmetrical, Ascending and Descending)

That’s all.

Pipruit: I though they are fewer…​

Commander in Pips: Don’t worry. At the end of this chapter we will prepare cheat sheet table – to make your life easier.


P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon.



Note: FPA ranks are earned in the battles against scam, not in the classroom.