What is the expanding triangle pattern? The expanding triangle pattern, also known simply as expansionary formation, is formed during periods of very high market volatility, with many price oscillation and a not very clear trend. With each swing the pattern expands further, forming two opposite trend lines. An expanding triangle consists of a series of [...]
In this article we finish the series on daytrading and scalping strategies based exclusively on price action applicable to Forex and other markets, we hope you have liked it. These strategies are based on the identification of classic price patterns from technical analysis. You can access the third article in the series at the following [...]
In this article we will continue with the series of articles on scalping and daytrading strategies based exclusively on Price Action that may be useful for you to trade in Forex, although they can also be adapted to other markets. These strategies are based on the identification of classic price patterns from technical analysis. You [...]
The rectangle is a trend continuation pattern and consists of a price formation in which demand and supply are apparently balanced for a certain period of time. The price moves in a narrow range where it finds a support at the bottom of the rectangle and a resistance at the top of the figure. Finally, [...]
In a previous article we explained some basic day trading strategies for Forex and other markets, mainly based on price action. Continuing with the series on daytrading strategies based exclusively on Price Action (the most common price patterns), we are now going to present another series of strategies based on classic price patterns of technical [...]
In this article, we present a complete collection of ideas to build daytrading strategies based exclusively on price action that can be useful to trade in Forex, although they can also be adapted to other markets. By the way, I have been told that these strategies were used on a trading desk of a well-known [...]
One of the most useful chart price patterns in trading is the the cup and handle pattern. It does not appear very often in the Forex market but when it appears the chances of a good entry are very large. As with many chart patterns, its use is recommended mainly in long-term graphics and not [...]
The Inverted Rounding Bottom is a figure which consists of a chart pattern that is very similar to the regular Rounding Bottom but in opposite sense as it appears in bullish markets as a trend change formation. […]
An ascending channel is a chart pattern formed by two parallel lines and with ascending inclination that contains the price action. It is also known as a bullish trend channel or simply a bullish channel. Although the price does not always adapt perfectly to the interior of the canal, the lines that form it point [...]
Description of the Island Reversal Island reversal is a trend change pattern which forms a gap on both sides. This chart pattern is most likely shown when the market trend proceeds to its last level. The name island reversal is obtained from the fact which the candlestick appearing alone, that is quite alike in the island. [...]