Some important message for new Forex traders

For example, you can measure the distance of the double bottoms from the neckline, divide that by two, and use that as the size of your stop.

Continuation Chart PatternsContinuation chart patterns are those chart formations that signal that the ongoing trend will resume.
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Usually, these are also known as consolidation patterns because they show how buyers or sellers take a quick break before moving further in the same direction as the prior trend

We’ve covered several continuation chart patterns, namely the wedges, rectangles, and pennants.

Note that wedges can be considered either reversal or continuation patterns depending on the trend on which they form.

To trade these patterns, simply place an order above or below the formation (following the direction of the ongoing trend,

of course). Then go for a target that’s at least the size of the chart pattern for wedges and rectangles.

For pennants, you can aim higher and target the height of the pennant’s mast.For continuation patterns, stops are usually placed above or below the actual chart formation.

For example, when trading a bearish rectangle, place your stop a few pips above the top or resistance of the rectangle.Bilateral Chart PatternsBilateral chart patterns are a bit more tricky because these signal that the price can move eitherHuh, what kind of a signal is that?!

This is where triangle formations fall in. Remember when we discussed that the price could break either to the topside or downside with triangles?

To play these chart patterns, you should consider both scenarios (upside or downside breakout) and place one order on top of the formation

and another at the bottom of the formation.If one order gets triggered, you can cancel the other one. Either way, you’d be part of the action.

Double the possibilities, double the funSo be careful and don’t forget to place your stops too! to forex trade and insta.

The only problem is that you could catch a false break if you set your entry orders too close to the top or bottom of the formation.

And as you probably noticed, we didn’t include the triangle formations (symmetrical, ascending, and descending) in this cheat sheet.