Home for all Chart Traders: This site will teach you how to trade Chart Patterns, via articles about trading, Money Management, Patterns, and more!

Identifying Trend and Range

The ability to identifying Ranges and Trends is crucial for your trading success. In this article we will describe the difference between the two, introduce a simple tool to differentiate and the trading attitudes one must implement in each phase to maximize its profits.

Background
We will start by several declarations:
Trend - Directional movement of price.
Range - Random movement of price, usually from levels of Support and Resistance and without any order or direction.

How To Trade The V-Bottom

V-Bottom occurs when price creates a V-shaped bottom at a support level. This is one of the least known chart patterns, but once clearly identified it can be a great entry point. It it especially good for breakout traders, as this is the only way of trading this pattern. We will start by presenting the general appearance of the pattern, teach how to trade it and finally present several examples.

Appearance

Candlestick Formation: Engulfing Pattern

The Engulfing pattern is a strong candlestick formation, which is used to confirm many signals and chart patterns.
In this article you will learn how it is identified and used in trading.

Structure
The Engulfing pattern is constructed of two bars:

  1. Bullish Engulfing Pattern is constructed of two bars, which the second one opened below the first, and closed above - engulfing the first candle

How To Use Fibonacci Retracement

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The Fibonacci Retracement is a strong tool that helps to identify reversal points of price and predict continuation of trends. In this article you will learn how to use this magnificent tool in your trading.

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