There are many different elements of the analysis of financial assets at the trader’s disposal. This can be both summary information fundamental data and computer models for predicting the future value of the asset in the market. Also, indicators, trading robots, and patterns can join these groups. Today we will talk about the last element.
Patterns are market patterns that fairly accurately reflect the subsequent dynamics of an asset based on the previously formed similar price combinations. To put it simply, the pattern is a combination of price bars that allows the fix api trader to learn the future direction of the movement. The patterns may include both the trend continuation and reversal. In fact, the list of patterns counts more than a hundred different combinations. But I propose not to scatter and start studying the key ones, which indicate exactly the trend continuation.
Patterns of trend continuation:
Let’s take a closer look at each of them.
This pattern is formed with the help of a pulse and a gradual even set of positions, as well as growing volumes at the moment of the impulse and a decrease in them after growth/fall. According to this pattern (http://forexrobotshub.com/2017/10/05/technical-analysis/ ), one should expect an identical impulse after a set of positions. Therefore, trading according to this technical element should be towards the upper border of the flag with the Stop loss level behind the lower limit and take profit to be set in the same number of points as earlier the impulse size.
This pattern is formed just like a flag – there must be a significant impulse that will accompany the subsequent set of positions. The essence of trading methodology is exactly the same – to set SL beyond the pennant’s bottom and TP in the same number of points as the impulse. The difference is that the pennant is not formed by a uniform set of positions, but in the form of a triangle. If the impulse was on H1 and the pennant began to form, go to M15 and if you see the technical figure of the triangle, then you can expect a “shot” in the direction of the impulse. Also, here is the time of entering the market. If we set a pending order on the flag above the top or bottom border, then according to the pennant, it is fashionable to put immediately behind the triangle boundary, which increases the profit potential from trading on the fix api forex.
A newly identical figure, which works according to the methods of work of the previous two. There is also a difference here. Wedge, after the impulse, demonstrates corrective movement in the form of the channel as well. Such a rollback can occur in more than 50% of the impulse itself. Only after that, it will continue the strong movement towards the impulse.
This pattern is different from the previous three and is a lateral channel with clearly defined boundaries. There are two types of trading at the same time – in the channel and in the breakdown. To understand where the breakdown will take place, you should look at the whole trend or on the older timeframe.
Trend continuation figures are a reliable source of information that indicate to the manager in which direction it is necessary to open trading positions. The patterns that I have given above are ideal for any trading strategy and can become an additional trading signal (https://1sforexsignals.com/ ) for both an additional transaction opening or exit from the market if the trend continuation pattern does not go in your direction.
I also use these patterns in my fix api trading and they serve me as additional filters to determine the immediate goals of the current move. I strongly recommend that you study this element for a greater reliability and efficiency of the trading strategy.