MOSTLY USED FOREX PATTERNS

RISING WEDGE PATTERN:-


A rising wedge pattern is a chart formation in technical analysis that occurs when price rises in a narrowing range between two upward sloping trendlines. This pattern is often seen as a bearish indicator, suggesting that the security is likely to break out to the downside. When the falling wedge forms, it is typically accompanied by decreasing volume. This indicates that the move is losing momentum, and is indicative of a possible reversal.

FALLING WEDGE PATTERN:-

A Falling Wedge pattern in Forex is a bullish chart pattern that typically occurs in a downtrend. It is characterized by a series of lower highs and lower lows that converges towards a point of support. The pattern indicates a potential reversal of the current downtrend and a potential change in trend direction. The pattern can be used to identify potential buying opportunities, which can be further confirmed with other technical indicators.

HEAD AND SHOULDER PATTERN:-


Head and Shoulders Pattern is a popular technical analysis pattern used in the Forex market to identify potential reversal points in the market. Head and Shoulders Pattern is a chart pattern that is formed when the price creates a peak followed by a higher peak and then a lower peak with the middle peak being the highest. This pattern is used to determine possible trend reversals and is considered a reliable indicator of a potential trend reversal.

DOUBLE BOTTOM PATTERN:-


Double Bottom Pattern is a technical analysis charting pattern used in forex trading to identify reversals in an existing downward trend. It is created when a currency pair makes two consecutive lows at approximately the same price level, with a moderate peak in between. This setup signals an impending bullish reversal and indicates that the pair may be about to resume its previous uptrend.


BULLISH PENNANT PATTERN:-

Bullish Pennant Pattern is a chart pattern in forex trading that signals a potential bullish price breakout. It is formed when the price of a currency pair consolidates within a symmetrical triangle pattern following a sharp price movement in the same direction. This pattern is considered to be a continuation of the prior trend and traders often use it to enter a long position or exit a short position.


ASCENDING TRIANGLE PATTERN:-


An Ascending Triangle pattern in forex is a chart pattern characterized by a flat upper trend line and a rising lower trend line that converge at a point known as the apex. This pattern usually forms in a bullish market, as it indicates a gradual increase in buying pressure. When this pattern is identified on a chart, it signals that the price of an asset is likely to break out of the upper trend line and continue rising.