Learn chart pattern trading

Chart pattern trading is the main method for a lot of traders to make money in Forex, patterns mean that a familiar shape of points, when you recognize one of these patterns then you’re so close from a successful trade.

Charts pattern trading is could be a very profitable strategy for you only if you understand how it move and when you make a good plan, the good point about chart pattern trading is that the profit you get will cover the loses you had easily.

It's important to learn how chart patterns form and move, here we’ll teach you the necessary help to get closer to charts pattern world and use the necessary tools to make your winner trades.

Chart patter is a serial of high and low points, there is a relation between these high and low points, they are not random at all. It discovered by scientists, they made a lot of studies to find these relations and to find the accurate number to recognize the pattern easily.

A scientist found out that market moves in waves, a strong long wave followed by a short wave in the opposite direction, these wave called Elliot wave, another one found out that market found resistance and support in specific levels, he measured the levels and found out the Fibonacci numbers.

So we use this logic to know when the market will move and where, there is no traders on earth need more then the answer to these to questions: when and where.

In the next posts we’ll talk more about patterns like Gartley pattern, butterfly pattern, bat pattern and crab pattern, we’re following specific rules with a specific resistance and support levels which will help you to understand how things work and to make your own way for trading.

Read Fibonacci Retracements Levels

This article for Fibonacci beginners, we’ll learn in this article how to read and understand Fibonacci numbers for charts pattern.

Charts pattern are recognized by resistance and support levels are formed, we measure these levels and compare it with charts pattern levels we know, then we start to make the trade setup.
You may not can read the ratio numbers in your trade, for example if you read ratios like 0.618, 0.382, 1.618, what these numbers mean??

Charts pattern like Gartley pattern, bat pattern, butteryfly pattern and crab pattern consists of 4 waves, 0.618 is the first retracement wave, you can measure this level by Fibonacci tool in your chart window, and this is the first resistance level.

To know how we get the value 0.382, your start point is A and B will your end. Then measure the level we have, and this is the first support level.

The last number is 1.618. and this is suppose to be the last wave and resistance level, to measure this level you need to move the start point to B and the end to C. By identify this level you have a good chance to make your setup for a successful trade. Good luck.