Earnings using graphical analysis. Patterns in the currency market

 Patterns are a set of specific patterns of market price movement. As you know, there is an important, and perhaps the main postulate of working in the Forex currency market, which tells us that history repeats itself almost always. Therefore, the price chart will contain certain figures that were once in history and are more likely to occur in the future. This way we can calculate the price direction.

Usually, patterns are classified into reversal and further continuation patterns.
The first is a "beacon" confirming the continuation of the trend, the second, respectively, for its change.

The "Zigzag" figure

The zigzag figure is often drawn when the price is correcting the price or at the beginning of a trend.

The "Triangle" figure

can Be descending (the so-called resistance line looks to the South) and ascending (respectively, the support line points to the South). The triangle can also be either narrowing or expanding.


U-turn shapes "Double vertex" figure

A double top is not difficult to see and recognize even for a beginner in trading. The main feature is two "peaks" that have the same or approximately the same height. The mirror image of this figure is called the "double bottom".


One of the trader's favorite figures, symbolizing a reliable trend reversal signal. It is important to consider one detail-one end of the neck, in the classic version of this figure must be lower than the other. At the same time, when the horizontal line has a different slope, the signal accuracy will decrease. This figure is formed both at the top and at the base. The exact reversal when trading will serve as a breakout of the neck line.

Figure " Folding meter»

Another stable reversal signal of the described analysis is the “folding meter " figure. In order to see it, you need to draw three trend lines: as soon as a new trend was formed, as soon as active price variability began and as soon as the price sharply increased in relation to the second line. And as soon as the price breaks the third line, the trend is considered complete and you can open a deal against it. This type of graphical analysis seems difficult at first glance, but if you use it in your work, the trader will be able to accurately predict the price movement and see when the trend breaks through.

Thus, using the above types of graphical analysis, which at first glance seem complex and incomprehensible, a trader can accurately predict the movement of prices in the market and earn quite a good profit.