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Patterns on Forex - how to use them to trade?
Have You ever had when you look at the market and feel that the price will go now it is in "this" specific way? Typically, these sensations appear at the traders who have already managed to watch the market, I noticed that similar market circumstances rarely end the same way.
Then the trader usually tries to capitalize on his observation, podgadyvat times when in the market again appears similar situation. However, often these samples are end losses but why is this happening and what does all patterns?
Pattern Forex - this is the checked graphic pattern that can be described by rules. The main difference of a pattern from observation of some regularity in the fact that observation is a very subjective thing when not carried out any objective assessment of what is noticed.
The pattern is ready-made model based on statistics. Naturally, to collect statistics for the conclusions is not possible if there are no clear rules for determining the pattern on the chart. First you need to articulate how we will distinguish the desired shape (the situation), what should be its main features.
Examples of effective patterns
There are diverse patterns in Forex, which can be divided into groups on the basis of application. For example, there are reversal patterns like the pin bar or doji, and there are patterns that confirm the continuation of the market trends. There are other varieties of growth patterns, but these groups are most prevalent in the foreign exchange market.
At the time, each of the graphic shapes were also just someone else's supervision. Then mathematically described the conditions of emergence of a particular figure, statistically checked its effectiveness.
Of course, no need to wait for that direct, each transaction made on the basis of using a particular pattern, will bring a profit, but it is for this statistics is typed in, that would evaluate, managed to achieve the benefits of profit over losses.
Every year appear in the Forex market new patterns, but we must understand that not all of them can be successfully applied in the trading process. Some of them are not well proven, others are based on shaky ground", when the probability of fast decrease in their effectiveness.
I recommend to start to use time-tested patterns which are proven. Some of them You will find by clicking on the links in the beginning. It's not a difficult way to understand when the probability of continuation of trend or catch the moment of the market turn.
Patterns in the Forex market is not small, but even having 2-5 pieces, you can quite successfully trade in the foreign exchange market. Track graphic figure it is better for several currency pairs, analyzing complex situations and testing them for compliance with accepted work patterns.
|Category: Binary options | Added by: (07.11.2017)