Patterns in the foreign exchange market - ready-made trading models

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Today we will look at how the trading model is formed, which is subsequently used by many currency speculators. Since a pattern is a kind of template, a reasonable question arises, how is it created?


To date, all currency market templates are conditionally divided into two categories, namely generally accepted patterns, which are described in various courses and homemade templates. The first category of patterns is time-tested, has been repeatedly used by traders from different countries, and is respected among speculators. The second group of templates is rather the work of private traders, which have not been widely used.


This state of affairs does not mean that homemade patterns are worse, however, they may be less profitable or even less reliable. Let's list some of the most popular patterns:


Head and shoulders

Triangle

Flag

Pennant


There are other options that are widely used in the foreign exchange market, however, the ones listed above are really common patterns.


Such trading models were invented after prolonged observation of the market, which allowed us to notice patterns in price behavior. Traders noted that, for example, when the market narrows, when straight lines can be drawn through local highs and lows that intersect in the future, it is worth waiting for a sharp price movement when one of the drawn boundaries is broken.


In other words, when the price crosses one of the lines drawn through the extremes, one should expect a sharp market movement in the direction of a breakdown.


Similarly, there were other features of price behavior that were statistically verified. It is impossible to say here that such situations will be observed in 100% of cases. Even a probability of more than 60% will be enough for a trader to earn money in the market in order to successfully use the found pattern or pattern.


Trading models are also convenient because they can be used by the same trader all the time. A person analyzes the market and can apply any of the patterns he chooses in his work when given the opportunity.


This allows you not to wait only for the same type of situation, but to work with different scenarios. In addition, trading templates can be used on various currency pairs, which also increases the occurrence of situations suitable for the trader's work. Melbet offers a welcome bonus from 100% up to a huge 200% to new players who want to test out the bookmaker's services. New customers on our platform can get a great 200% sports betting bonus with melbet promo code to claim a boosted welcome offer . Join the Melbet sportsbook and you can receive a welcome bonus of up to $130(€100). With our promo code, Melbet users get additional bonuses and other benefits for sports betting and casino games. Melbet First Deposit Bonus. New bettors in Uganda who decide to register and use the Melbet promo code can get a match on the first deposit they make.