Category Analysis charts - Price Action - Part 2 - Singapore Forex Trading, Singapore Forex Academy, Singapore Forex Association

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Category Analysis charts - Price Action - Part 2

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In the previous period outlined understandably Japanese candlestick patterns is important, as an effective tool to forecast the reversal simplest, at least brings a signal that power increase / decrease has weakened to quickly turn things around. States will continue to "dissection" of the price chart. Recall new recovery babbling finished installing MT4 only looking without knowing what tissue numbness on Chart, thought that there was no rule nothing to identify trends, after a new roll length the role of the Utility Model Marketing through which can predict the future.
Based on the assumption that history tends to repeat itself, so that what has happened in the past will create the mold, in the future have the opportunity to see the reaction mr.Market well almost " exactly ". Example with classic chart pattern Shoulder - Head - Shoulder, or Double Top, Bottom, ... if you have never heard of these guys okay, this article and the general system what to do operating platform study sites for your Forex trading.

 These types of terrain

There are two environments: Tend and Sideway. SW has two smaller groups: Sw Sw in a narrow band and broad band.
the market is trending market trends Photos on record when the market tends to markedly increase or decrease, anybody seen without trying to imagine :). And image below market only Sideway, to enjoy watching me draw a horizontal channel.
When the market is moving sideways so that it will be waiting for his shift rates breakthrough, should not guess because such action not unlike gambling (Unless you are very knowledgeable about the market, understanding the impact of the news on the market, such as George Soros, stringing single economic event to predict an upcoming trend) Without deep expertise in finance - economics standing outside for healing. In the previous article the author also mentions several times postponed average strategy, do nothing to wait the opportunity is ripe, this market is always right in Print range. Desperate to jump in at the bottom, top to eat thicker but only 50% victory.
The tool you use interstitial Trendline is available on the MT4 trading software to draw lines showing more intuitive Trend) for reference. will create a forum for Trendline into details later, tracking  welcome :). In all of the models range price (price action) we mainly analyze and remember to read the chart easier.
The important price patterns
1. Pennants Flag pattern
flag - the price patterns hieu
This model is statistically more than 85% accuracy. Identification of this very simple model, this heading Continuous Pattern, charts tend to continue, if the current is on the rise, when this pattern appears Flag will entail a different rally. Trading opportunities when prices adjust and make the flags as illustrated, when prices break the tiny channel is reduced when purchased. This model met regularly since rarely a complete Trend that usually increases when adjusted for price. According own experience, you should apply Fibonacci to the nearest bull, if the price is usually reversible strong Trend Retracement to 38.2% while the relatively weak Trend then to 61.8% Retrace possible. Knowing this secret to Stop Loss Order smarter.
2. Pennant pattern and Ascending triangle

pennant-pricing model This model nicknamed the "pregnancy" as a woman looks slightly pointed gourd + :)
Trading opportunities with this price pattern is waiting for the price to go to the end of the road, as illustrated, the market is going down, but if you go to the top of the symmetrical triangle and then they are then shot up as models to be ERROR, Meanwhile ignore this signal, it fell under the circumstances, it can SELL trend.

ascending1 The second model is called the Ascending triangle, triangle, differs in that the lower triangle edge, the same "gang" continued up 2 models forecast the trend continues. This tactic rated styled Soros, willing to buy at high prices to higher profits, while accepting trade by price pattern then you can buy a high price! not as tactical bargain hunters
pricing model case study
In fact you will often see this type of pricing model. Looking ever will get used to it, there is no other way, everyone is falling, it is sure to create such continuation pattern. Detecting this pattern to glide under the waves.
3. Double Top Model M

As its name implies, is the Double Top pattern top. The process of forming the pattern M as follows:
    mo hinh_double_top
  • Phase 1: apparent upturn
  • Phase 2: There is a relatively strong reduction goal
  • Phase 3: Restores increase peak but failed test, insurmountable old peak
  • Stage 4: The price plummeted through the Base
Dealing with this model is quite simple Double, wait Breakout finished, prices recovered to test the command line to enter the Base. Similarly when the market make up a W, 2 floor models. You see after Breakout it back too, waiting to order under Trend cooldown.

4. Model Role - Investments - Shoulders (Head & Shoulder)
The head and shoulders pattern
This name comes from the shape of the pattern, the left shoulder - Investments - right shoulder and neck line is considered a reversal boundary determination. Observation 2 illustrated above, when prices started to form my left shoulder and right shoulder forward formation, blue trendline break is an important sign to identify trend shaken but more will surely tissue Figure Shoulder - Investments - complete shoulder, when it will SELL powerful off.
5. Model of the cup - the handle
This is my last Pattern introduction, this pattern type 1 ring and confirm a new trend, the shape looks mug + handles. When prices rise beyond "handle" is the right time to buy.