All Traders MUST memorize the most prolific chart patterns in the Forex. You need to do 300 of each pattern ALL AT ONCE and then take 24 hours off so your brain can build a retrieval system to where it has stored the patterns. Here's if you are one of those that needs the back up and wants to understand this proess: http://www.howourbrainswork.com/
You can learn what they are and how the market usually reacts to them by studying the graphics below.
Which ones are the most important?
Bear and Bull Flags, Descending and Ascending wedges, Rectangles and Head and Shoulders patterns.
Market participants all know these patterns and trade them. For ProAct Traders, on the breaks of these patterns we almost always get a momentum signal as money flows into the market and that can mean a trade setup. That means that if you memorize the patterns you can anticipate what the market will try to do in the future and have a clear trading setup to help you enter the trade. This increases your statistical probability in trading, your confidence to push the button and helps struggling traders immensely. We have a Free Pattern Recognition trainer on the software tab above that will get you started right (it only does one example but it will start you out correctly).
Note: the screenshots below are the most common ones (Click below to see larger view-then hit your escape key to come back): We will usually get a momentum movement on breaks of these patterns. This will show up as a White Dot or a white dot an arrow and neon painted candle on the 10 minute chart.
Below is a PowerPoint that you can review to get your head wrapped around this!
Chart Patterns that explode your trading tutorial Click
Don't have Powerpoint? Download a viewer here.
"Trading Forex involves substantial risk, is not for every trader and only risk capital should be used."