The Best Forex Patterns

[ea shop]

The Best Forex Patterns
Technical analysis of GBPUSD

The following example is a typical example which shows the power of technical analysis and concentration of the Forextraders to the principles of technical analysis. This educational example reminds the traders that the market should be analyzed for a long time no just a short period of time.The below chart is the chart of GBP/USD in 1h time frame from 8th of February to 16th of February. On 8th February to 9th February, two important price peaks were formed which are indicated by red circles in the below picture. By linking these two points, which are the price ceilings, a descending trend line will form which we can use it for technical analysis and forecasting the future of the market (Points 1, 2). In this example, the descending trend line works very well and it prevents forming of an ascending trend for 4 times.

Analyzing of points 3, 4, 5, 6

Point 3
The first encounter of the price with the descending trend line happens in this point. Please consider how the price moves toward the descending line with the ascending candles strongly. But as soon as reaching of the price to this line, the price will stop moving and this is a sign of buyers’ retreat and their loss.

Point 4
After the falling of the price in point 3, the buyers are more conservative about the market. Therefore, The price with a harmonic movement of AB=CD which indicates a reformation in the price moves toward the descending trend line. Formation of several candles on the trend line indicates that there is war between the buyers and sellers but this war is not the sign of decisiveness of the sellers. Finally, the price fell and by considering the pattern of AB=CD the trader believed that the possibility of the success of point 4 is more than the other points.

Point 5
The price peak of point 5 is more than 50% in Fibonacci ratios (from the begriming of falling of the price is point 4 to the end of it) which along with the descending trend line causes the falling of the price for the second time.

Point 6
In analyzing the point 6, traders find a harmonic pattern of AB=CD. This pattern is a sign of falling of the price from this point.


End of the descending trend line

The warning of trend line’s losing power is issued by the formation of the harmonic and strong pattern of AB=CD which are indicated by the green lines. As you can see after the falling of the price in point 6 the ascending trend of the price is started. The important point which proves the accuracy of the performance of the AB=CD pattern, indicated by green line, is accompanying pattern like the AB=CD pattern itself. This same pattern make the AB=Cd pattern a stronger comparing the normal pattern.



Written by the technical team of FXMIM
www.fxmim.com

 

[ea shop]

Forex Analysis
The Best Forex Patterns
A buying opportunity in EURCAD currency pairs



The following chart is about EURCAD currency pairs in 1 hour time frame which according

to the technical analyses and their indicators we can expect a good buying opportunity.

This buying opportunity appears several times in this chart.


Harmonic pattern of AB=CD

The main technical pattern in this example is the harmonic pattern of AB=CD which has the ideal ratios of 127.2=78.6. This pattern is one of the strongest reversal patterns which mostly forms during the price corrections. Other important ratios of this pattern are 161.8=61.8 or 200=50 which they have golden ratios.


Candle stick patterns

In forming the D dot, the formation way of the candlestick patterns is very important. In this example, the formation way of the candles shows that a bottom price is formed and the falling of the prices is stopped. Among the formed candles, there is an inverted hammer candle stick pattern which shows the possibility of stopping of price falling as you can see in the picture.


Observing the fifth waves of Eliots’ waves pattern

Type of formed candlestick patterns with the important pattern of AB=CD is a very important warning about the rising of the price. At this time, another technical analysis, Eliots’ waves, reinforces this rising of the price. On the CD side of AB=CD pattern you see a movement of the fifth wave of Eliots’ wave which obeys all of the important rules of the Eliots’ waves and also issues the end the falling process. The combination of the Eliots’ waves and harmonic patterns provide a clear analysis of the market for the traders.


Written by the analyzers of FXMIM
For more examples,please visit our blog
www.fxmim.com

 

[ea shop]

GBPCHF,H4
Harmonic patterns and Elliott waves.

Elliott waves and harmonic patterns are two most important technical analyses in order to predict the currency and stocks’ market. Many traders are using these analyses to be more successful. Although, these technical analyses are separated and different from each other but in fact they cooperate very well in the market. For example, a Harmonic Gartley pattern, most of the times, forms in the second wave of an advanced wave which, in fact, is the correction of the first wave movement. This formation happens several times in charts and at the same time sends good signals to technical traders.The following chart is GPB/CHF currency pairs in 4h time frame which shows the above point perfectly. However, A harmonic pattern’s expert can easily determine and draw this pattern which consists of X,AB,C,D points. When the point D is forming, a movement in the fifth advanced wave is also forming (from D to E). This simultaneous formation duplicate the importance of Crab pattern. These 5 waves, which are in complete accord with the Eliot’s rules, are determined by the green color:

1. The third advanced wave is not the smallest wave.
2. The fourth wave has an acceptable overlap with the first wave.
3. The corrective wave of number 2 has a good reversal. (The second wave cannot start correction until the first one starts)

Another important point is the clarity state of fifth wave which confirms and issues the end of main fifth wave.


5 to 5


In studying Eliot’s wave, when we want to open a position unlike the current trend, it is logical to get a confirmation from the fifth wave. This confirmation is the internal counting of fifth advanced wave. When a trader counts the fifth wave correctly and according to the Eliot’s rules, he will have a successful trade.In this chart, the internal counting, which is according to the above rules, is determined by the blue color. Finally, it shows that the completion of these five waves is finished with a smaller ratio in the main fifth wave.


www.fxmim.com
Written by the analytic team of FXMIM Company

 

[ea shop]

Technical Analysis(AUDCAD)
A short study of descending channel in the price charts

Price channels are very useful tools in technical analysis to predict the future movement of the price. Price Channels consist of peak and bottom price, in fact they are like supportive and resistance lines. The following chart is the chart of audcad which you can see the descending price channel in it, also you can study the rules of prediction of a price channel movement in it very well.

Exchanging in the price channels

When a price channel is in a falling position the priority is with selling opportunities. Visa versa, when the channel is in a rising position the priority is with the buying opportunities. However, the best kind of trades, which have less risk, is trading according to the general trend line of the price.


In the drowned price channel, the basic points are determined by the red color. They consist of two price peaks. a descending trend line is shaped by Connecting these two lines will. As you can see, when the price reached this line for the third time, it did not have the ability to pass it and just a long shadow of the line remained. This long shadow is the sign of buyer’s lost. Continuing this process, the line forced the price to go even lower. From technical point of view, this time, is the best time for selling.Another important point here is the supportive line of this channel. This supportive line helped the price to improve its position and go higher twice. In the point number 4, a beautiful hammer pattern is formed which issued the warning of a rise in the price very well.

Note:

Another important point in this channel is in the drowned supportive line. To draw the channel or the supportive level we should use the point number 2.most of the traders ignore this point and connect point 3 to point 1 directly which is wrong. (The bottom price in the point 3 is under the influence of point 1 and 2.


Written by the analytic team of FXMIM Company
www.fxmim.com

 

[ea shop]

The Best Forex Chart Trading Pattern
Changing Resistance levels to support levels
EURUSD,M15


By studying and reviewing the currency pair’s diagram, you can find a strong technique which can help you to analysis the market better. When the support levels or resistance levels are broken by the price and cross these levels, when they will come back and come near to these levels again their properties changes and they will play a new role.You can use it as a support level if the broken level was a resistance level or you can use it as a resistance level if the broken level was a support level.

Written by the analytic team of FXMIM Company
FxMim Company