Category: Chart Analysis

If your question is, what is the difference of Pennant and Wedge chart patterns, then I answer you here at the beginning of this article. However, make sure to read the rest of this article because knowing the difference between Pennant and Wedge doesn’t help you to make money as a Forex or stock trader. You can see the difference between Pennant and Wedge on the above diagram. Their difference is that Pennants are horizontal, but Wedges are either ascending or descending. That’s their main difference. These two patterns are like the Symmetrical Triangle pattern, but they are much smaller. Continue reading Difference Between Wedge and Pennant Chart Patterns

The fact that you are here on this page means that you are either a Forex or stock trader who wants to learn chart analysis and now wants to know more about the Rectangle Chart Pattern and trading the breakouts of this pattern. Chart analysis basics are the same. Therefore, what you learn in chart analysis can be applied to all markets. If you are new to chart analysis, I suggest you start from this article because it explains the basics of chart analysis that you must know before you want to learn about the chart patterns like Rectangles. Continue reading Rectangle Chart Pattern Breakouts Trading

What we know as Forex chart analysis has come from stock traders. It is the result of decades of struggling, blood and tears of stock traders who invented a science that now works for us and enables us to locate buy/sell signals on markets’ price charts. Fortunately, you can now learn all chart analysis techniques through one article. Spend a few minutes to read this article entirely and start analyzing the charts with the techniques you learn here, and you will see that you can also locate the trade setups. In this article, I have tried to keep the work as simple as possible. Complicated chart analysis techniques and systems can only make you lose money. Continue reading Forex Chart Analysis the Way Professional Traders Do It

Triangle Chart Patterns are among the most famous chart patterns in technical analysis. There are some professional traders who only trade Triangle Chart Patterns because they believe triangles are much easier to locate, and also much easier to take a position, set the stop loss and target, when a triangle is formed on a bullish or bearish market. Continue reading Triangle Chart Patterns: Symmetrical, Ascending and Descending

Chart patterns are among the most important tools we can use to guess the next direction of markets, take a position and make some money. So far, I have talked about Triangles, Wedges, Flags, Pennants, Rectangles, Head and Shoulders, and Cup and Handle patterns. In this article, I will talk about some other kinds of patterns that are very important in predicting the market’s direction, specially when there is a possibility that the market changes its direction. Continue reading How to Trade Butterfly and Bat Patterns

Cup and Handle or Saucer and Handle pattern is one of the strongest patterns I’ve ever seen. This pattern doesn’t forms on charts very often because unlike other patterns like Triangles, Head and Shoulders, Rectangles etc., Cup and Handle pattern takes a long time to form. However, when it forms, it is so reliable and strong and generates strong and profitable trade setups. Continue reading Cup and Handle Pattern: How to Use It in Your Trading