144 FX

Now that we have learned the basics of technical analysis and multi time frame analysis the next thing we will look at is chart patterns in the forex, futures and stock markets. Chart patterns are what technical traders look for on historical price charts to help them determine what the current supply and demand forces are, and how prices may be affected as a result.

In our previous lessons on trends and support and resistance, we have already identified several of the most basic chart patterns which traders use to place trades. As you remember from these lessons, some of the more common patterns are up trends (bullish pattern), which when we view on a chart we identify with a potential buying opportunity, and down trends (bearish pattern), which we identify as potential selling opportunities.

Although support and resistance are not classified as chart patterns there are many chart patterns which are associated with identifying support and resistance, and we will start by examining the most basic of these patterns.

Please continue on the next sub-column to begin our lesson on chart patterns.