The double bottom pattern forms when the bottoms and a neckline is formed. The bottoms are known as support zones that are very important zones that can influence the price in the forex market. A double bottom pattern can be traded by opening a buy (long) order when the second bottoms occur. The double bottom […]
If you’re a beginner in the forex market, the first thing you should practice in technical analysis is to find support and resistance levels. The support and resistance are used to analyze the market and identify potential reversal zones. When you find a support or resistance zone, that zone can be very important to decide […]
When the price changes direction from a level and goes back to test that level again, that’s retest, as price tests the previous price level again. A retest can occur at different price levels and on different time frames like the hourly chart, daily chart, weekly chart, etc. For example, if the price breaks a […]
Market patterns are the most effective method of analysis in the forex market. They indicate that the trend most likely will change the direction or continue the same trend. Technical analysis is based on various tools of analysis to detect trading opportunities in the financial market. And trading chart patterns are some of the most […]
The trend line in the forex market is one the most used for analyzing the market with technical analysis. By using a trendline in trading, you can identify an uptrend or downtrend in the market. They can help you to identify potential support and resistance level zones too. To draw a trend line, you need […]
An uptrend is formed by higher tops and higher bottoms and besides the bullish trend, it forms support zones or resistance zones too. Identifying an uptrend on the forex market can help you spot possible reversal or continuation of the trend. The tops on the bullish trend show the resistance levels and when the prices […]
The downtrend is similar to uptrend but with a bearish trend that can give us opportunities to short the forex market. A downtrend can occur mostly after the end of an uptrend but it can occur also on consolidated trends too. The previous article “how to trade uptrend“, explained the uptrend example and how you can […]
The double top pattern is one of the most common price action patterns in the forex market. When a double top starts to form, it can be decisive on the next movement of the market, as the double tops are known as reversal chart patterns. A double top pattern can be considered valid if two […]
When you open a trade in forex, you may wonder where to set the stop loss or take profit for this trade. This is the most common question that most of the new traders ask in the forex trading. Stop loss is used to prevent any further loss on the trade by placing the stop […]
A breakout occurs when the price breaks a certain level of the forex market. These levels can be support and resistance, trend line, uptrend, downtrend, etc. And a break on these levels could give us an indication to trade the forex market. A fakeout breaks the level too, but the breakout could be “fake”. When […]
