How to Trade Forex Chart Patterns | ForexBoat Trading Academy - YouTube

Hi everyone.

My name is Joe and welcome back to the ForexBoat YouTube channel. In this video.

We are going to talk about the top Forex Chart Patterns.

We will give you which ones are our favorite and help you

to draw them and use them in your future trades.

This is our agenda.

We will start with what is a Forex Chart Pattern.

We will move to introduce you to the types of Forex Chart Patterns and then

explain you our favorite ones

and at the end we will leave you with real live examples.

So what is a Forex Chart Pattern

a Forex chart pattern is a result of price fluctuation.

Forex Traders and Technical analysts

discover that there are certain patterns that repeat themselves in the market.

So each pattern has its own meaning, some indicate continuation, some reversal and others are neutral.

So how you will benefit from this chart patterns.

You will benefit by

they will help you to expect how the price will move in the future.

Now we will talk about the types of Forex Chart Patterns

We will start with Continuation.

This type of patterns will indicate a continuation of the current Trend.

So

a fresh move

will be seen after this pattern in the same direction of the main one

example

likes Pennants and wedges.

Reversal chart patterns indicate for sure and obvious a reversal.

And

you will see a fresh move in the opposite direction of the main Trend

examples are double tops, head and shoulders and wedges

moving on with neutral chart patterns, this type

They not indicate any

direction, all they do is or

you should all you should do is

to wait for the confirmation to expect the next move.

examples of neutral chart patterns are ascending, descending and symmetrical triangles

Now we will give you one example for each chart pattern.

We picked our favorite ones and we will talk in details one by one.

We will start with

bullish flag, a bullish flag as you can see on your right.

The price was in an upward movement then it ended the consolidation.

And what we expect after this is another impulse in the

same direction of the main trend.

Your stop loss will be in the lowest part of the flag.

Your target is the size of the pole.

A double top,

It indicates a reversal.

So

in the price, if you look at your right again,

the price was an upward movement, then

it enters a consolidation with a form of a letter M.

Then a downward movement is expected after the break out of the neck

Your stop loss is in the middle of the pattern.

Your target profit is the size of the pattern.

Now we will move

to symmetrical triangle

as we said before we cannot expect in which direction will the price

move...

All we can do is wait for a breakout

to one of the sides of the triangle.

So

if the price breaks out from the upside then an upward movement should be seen

and the opposite is true

and case the price

Breaks out from the downside, a downward movement should be seen

so our Target here is the widest part of the triangle.

Your stop loss is in the lowest point of the triangles.

now after we talked about

each type of patterns

we will go to show you a real examples using the MetaTrader 4.

if you open here our

MetaTrader 4 we have the EURNZD 73 00:04:57,751 --> 00:05:00,500 We are searching for a bullish flag.

As we said a bullish flag indicates a continuation of the trend here

The price was in upward movement.

then

a consolidation in a form of a flag is senn 78 00:05:19,376 --> 00:05:19,750 and then

the price continued upward as the main Direction

So how do you draw this

All you need is two trend lines that are parallel to each other, by linking

The tops and the Peaks using the wicks of the candles,

so

This is this is the flag something like this,

Your entry point is where the price is broken here,

So the price broke from the up side of the flag,

So the entry point is here,

Your stop loss is somewhere around here,

We'll put

This is our stop loss.

Somewhere here.

It is.

Your target profit.

We said is the size of the pole.

This is the side of the pole,

What you do is you project the size of the pole from the entry point.

so

this is our Target and a small retracement is noticed after reaching the target.

This is a bullish flag it's so easy to use and plot and keep it simple.

If you want to be a little bit aggressive.

You can enter right under the entry point.

You can put your stop loss right under the entry point.

But as a beginner we advise to put your stop loss

somewhere here under the lowest part of the flag.

moving on to

another example, we should show you how a double top appears in a market.

If we look on the NZDJPY why we can see that the price

was in an upward movement

like this

and then it made a consolidation.

Consolidation is seen.

with a letter M

and then a downward movement.

Something like this,

So the main Trend was upward consolidation

and other the trend is changed by a downward movement.

So here the double top

did the job of a reversal.

We put the neckline is here.

This is the next line.

The next and help us know where to enter this trade

here is our entry point under the next time

your stop loss.

will be

the middle of the pattern here

Target profit is the size.

Of the pattern, something like is.

if we use the Fibonacci retracement, this is the

the target profit should be here and a retracements is seen after the target is plotted.

So it's respected.

If we want to be a little bit aggressive.

We can move our stop loss right above the neck line

but we repeat as a beginner is better to leave it

in the middle of the pattern moving on with our last example.

We are looking for a symmetrical triangle, the symmetrical triangle.

We said it indicates.

a neutral chart pattern so

Using the triangle trend line again.

We link the tops.

And the bottoms, something like this.

The price enter in a form of a triangle, our stop loss here.

Is under the lowest part of the triangle, like this here.

drop the stop-loss is here, our

Target is the widest part of the triangle.

This is

you project it here as the entry point since the breakup was from the upside.

So we should expect the price to move upward.

So we project from the entry point.

And this is our Target and the price

reach the Target and made a retracement so our Target is

respected

this is it for this video.

Thank you for your attention.

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good luck with your trades and see you in the next video.