📌TOP Patterns you should know when Trading in any market❗❗
You may have thought that the chart of an asset you were analyzing was starting to look just like another asset. Could this mean the outcomes would be the same?
Well, they definitely can be. The market is full of patterns and similar structures that traders often use for forecasting future price action. Many of these common patterns, ranging from triangles and rectangles, to wedges and head and shoulders can often determine if a market will continue to rise upon breakout, or drop once the price breaks down.
🔰How Do I Trade These Patterns?❗
If you come across a pattern that looks similar to one on the infographic, draw some support / resistance trendlines.
The main idea behind trading patterns is just like support and resistances. If you’re trading with the trendlines, you’d buy at support and sell at resistance. If you’re trading against, you’d buy when price action breaks through the resistance, and sell when it breaks through the support. Remember that hindsight makes these look easier than they actually are, and is why I stress the point that multiple tools should be used to confirm your analysis.
Sounds Easy?❗😀😄
Don’t be fooled. Trading is not as easy as this, and is a discipline that requires extensive learning. The truth is that 90% of traders lose money. However, with proper training and money management, you are able to be in the 10% that do not. Always have a trading plan, use stop-losses to cut your losses and move on, and never trade greedily.
Well, they definitely can be. The market is full of patterns and similar structures that traders often use for forecasting future price action. Many of these common patterns, ranging from triangles and rectangles, to wedges and head and shoulders can often determine if a market will continue to rise upon breakout, or drop once the price breaks down.
🔰How Do I Trade These Patterns?❗
If you come across a pattern that looks similar to one on the infographic, draw some support / resistance trendlines.
The main idea behind trading patterns is just like support and resistances. If you’re trading with the trendlines, you’d buy at support and sell at resistance. If you’re trading against, you’d buy when price action breaks through the resistance, and sell when it breaks through the support. Remember that hindsight makes these look easier than they actually are, and is why I stress the point that multiple tools should be used to confirm your analysis.
Sounds Easy?❗😀😄
Don’t be fooled. Trading is not as easy as this, and is a discipline that requires extensive learning. The truth is that 90% of traders lose money. However, with proper training and money management, you are able to be in the 10% that do not. Always have a trading plan, use stop-losses to cut your losses and move on, and never trade greedily.
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