Like we promised, here’s a neat little cheat sheet to help you remember all those chart patterns and what they are signaling.
We’ve listed the basic forex chart patterns, when they are formed, what type of signal they give, and what the next likely price move may be. Check it out!
|Chart Pattern||Forms During||Type of Signal||Next Move|
|Head and Shoulders||Uptrend||Reversal||Down|
|Inverse Head and Shoulders||Downtrend||Reversal||Up|
You never know when you’re gonna need to cheat, hah! Bookmark this thing yo!
And as you probably noticed, we didn’t include the triangle formations (symmetrical, ascending, and descending) in this cheat sheet.That’s because these chart patterns can form either in an uptrend or downtrend, and can signal either a continuation or reversal.
Confusing I know, but that’s where practice and experience come in!
As we mentioned, it’s tough to tell where the forex market will breakout or reverse.
So what’s important is that you prepare well and have your entry/exit orders ready so that you can be part of the action either way!