Price Patterns Trader Must Understand For Trading

Price patterns that any trader must understand, even professional traders. These are patterns that repeat frequently and help us grasp price fluctuations at that time.

Price patterns that   any trader must understand, even professional traders. These are patterns that repeat frequently and help us grasp price fluctuations at that time.

This is a collection of price models with the highest probability for trading gold. There are many other price models but they are often used for the stock market, which is almost not true in the gold and forex markets.

Just applying these price models will give you enough knowledge to trade profitably in the Gold market.

Price reversal patterns  are patterns that signal a trend reversal. Prices that are in an uptrend will turn down and vice versa, prices that are in a downtrend will reverse up.

1. WHAT IS A TREND REVERSAL PRICE MODEL?

These are commonly used patterns trading in trending markets and are easy to identify on the chart. However, traders can often identify it when it has already happened.

Below are a few common price reversal patterns in forex trading

2. THE MOST POWERFUL TREND REVERSAL PRICE MODELS

2.1. Head and Shoulders price pattern

This pattern has two forms: Head and Shoulders and Inverted Head and Shoulders.

Head and Shoulders

In an uptrend, a Head and Shoulders pattern appears and the trend reverses to bearish.

Inverted Head and Shoulders pattern (Inverted Head and Shoulders)

In a downtrend, an inverted Head and Shoulders pattern appears and the downtrend reverses to an uptrend.

2.2. Double Top – Double Bottom price model (Double Top – Double Bottom)

Double Top

In an uptrend, a Double Top pattern appears and the trend reverses to a downtrend.

Double Bottom

In a downtrend, a Double Bottom pattern appears and the trend reverses to an uptrend.

2.3. Triple Top – Triple Bottom price model (Triple Top – Triple Bottom)

Triple Top

In an uptrend, a Triple Top pattern appears and the uptrend reverses to a downtrend.

Triple Bottom

In a downtrend, a Triple Bottom pattern appears and the trend reverses from down to up

2.4. Rectangle price model (Rectangle)

As mentioned above, if the Triple Top – Triple Bottom pattern formed from the failure to break the support/resistance level of the Double Top – Double Bottom pattern, then the Rectangle pattern is the continuation. continued to fail to break the support/resistance level of the Triple Top – Triple Bottom model. The price continued to move sideways for a long time, continuously touching and bouncing back within the support and resistance levels. From there the rectangular model is formed.

Summary: Some models need attention to apply analysis to Gold prices

2.5 Cup and handle model

The nature of this model is that the price increases (or decreases) gradually presses up (or down) to the resistance, decreases slightly due to profit taking, then the price gradually presses up to near the resistance, this shows that it is very easy for the price to increase (or decrease). break from the resistance zone.

This strategy is when the price breaks out of the resistance so we buy (or sell).

This is an example of a cup and handle pattern.

There are many other price models but they rarely appear or have very low probability. Your Income  only condenses the models that when applied will give the highest winning rate