Common Chart Patterns in forex

There are several common chart patterns used in forex trading that provide valuable insights into future price movements. One such pattern is the "head and shoulders," which indicates a potential trend reversal. It consists of three peaks, with the middle peak (the head) higher than the other two (the shoulders). Another popular pattern is the "double top" or "double bottom," where the price forms two distinct peaks or troughs at approximately the same level, suggesting a possible trend reversal. The "ascending triangle" and "descending triangle" patterns indicate potential continuation of an existing trend. Additionally, the "flag" and "pennant" patterns are short-term continuation patterns that typically occur after a sharp price movement. Traders use these patterns alongside other technical analysis tools to make informed trading decisions.