Can someone explain patterns please?

Hello,

Some one could please explore all the patterns and suggest which pattern is for long which for short and which may be used more for binary trading?

Hello,

Some one could please explore all the patterns and suggest which pattern is for long which for short and which may be used more for binary trading?

As example "close price reversal" I understand as short signal.

Some one could help identify each pattern from follow if its long or short:

- DOUBLE_INSIDE-
- INSIDE-
- OUTSIDE-
- PINUP-
- PINDOWN-
- PPRUP-
- PPRDN-
- DBLHC-
- DBHLC-
- CPRU-
- CPRD-
- NB-
- NB2-
- FBU-
- FBD-
- MB-
- HAMMER-
- SHOOTSTAR-
- EVSTAR-
- MORNSTAR-
- EVDJSTAR-
- MORNDJSTAR-
- BEARHARAMI-
- BEARHARAMICROSS-
- BULLHARAMI-
- BULLHARAMICROSS-
- DARKCLOUD-
- DOJISTAR-
- ENGBEARLINE-
- ENGBULLLINE-

Help of such would be highly appreciated,

Thank you!

Help of such would be highly appreciated,

Thank you!

can you just google them?

Here are some that i use.

It's all 100% subjective.
Not reliable. The price can do anything even create those enthralling patterns with so many studies, books, trading systems and articles wasted on them.

2 words are enough to sum it up. Spending more time trading live or demo, read up some basic, gain some experience are more important. The rest will work out automatically.

Hey OP... I find that, much like Bogi, some of these patterns to be very indicative of the move they're supposed to "foretell". And, much like the previous 2 posters, I also find them quite unreliable. The difference between the two scenarios which are seemingly contradictory, is in context. These and other patterns or "formations" are only as good as the PA context they lie within.

What the hell does that mean?

Well, you'll find these patterns occur everywhere but they only produce results at specific times. Those times being the context. Take the old "intraday double top" or "double bottom". Well, if learn that a double top or an "M" formation happens a lot before a bearish reversal and then you just go around willy nilly trading M formations you're gonna be toast. But if you're looking for them within the proper context, they'll work out more often than not. Same thing with all the other perennial favorites such as doji's or spinning tops or hammers or whatever cutesy little names people want to give them.

The market, or the dealers, or "the big boys" or whatever name you want to give the driving force behind the market and its everyday movements, create these patterns, through their activity, all the time. Remember that "patterns" are just the footprints left behind by the dealers and the players within the market in general and everyone and their mother knows these patterns. They're psychological & manipulative snapshots of what has happened, ONLY. And if they were so accurate, everybody would make a killing (discipline and MM aside). The key is in knowing when and where they have the highest probability of actually telling the true story that you've learned that they tell.

There's just too many factors about these patterns that are rarely addressed to just go "here's an evening star... it means go short". What about time frame? How many pips is this pattern worth? Is a doji worth 10 pips on a 5m chart but worth 60 on an hourly chart? Is pattern-X worthless on a 15m chart but absolute gold on the daily chart? Where in the market cycle is the pair you've spotted this pattern on? Is news coming out soon? Does this pattern tell me anything before news? Did it just make a major reversal a couple of days ago? Yesterday? Are you at or near an all time high? Is this pattern showing itself after the price moved 20 pips? after a 120 pip run? What about the last hour? Was it aggressive or slow? etc..etc..

Another thing to remember with all of these patterns and many others that are out there. All that they show you is a "potential". It's up to you, given context and what you see going on in the market as a whole, to decide whether it's a valid signal or not.

Just to drive my point home, go ahead, take just one of these patterns. Preferably one of the high percentage ones, go back a year and scroll through your chart one bar at a time. See how many times you identify that pattern by how it looks in the photo and how many times it actually does reverse off of that pattern. You'll see these patterns show up a lot. And a lot of the time they show up right smack dab in the middle of a run and mean absolutely nothing. For example, you'll go back and look at a nice fat move and see that price moved 98 pips total and there was a nice bearish reversal pattern, perhaps an evening star at the top, and it came down 50 pips. Awesome! I can use that pattern to grab me 50 pips next time! But upon further investigation of the meat of the move up to that point, you'll find various "reversal patterns" all throughout the run.

At the 32 pip mark there was a bearish pattern that produced a 10 pip retrace, enough that, in the middle of that day and watching price move, you might think was a solid signal. You get in. Then it keeps going up and at 55 pips there was another bearish pattern. That pattern actually produces a 20 pip retrace before the next candle shot up 40 pips... then at the 80 pip mark there's another bearish pattern and wouldn't ya know it? It produced a nice 20 pip candle that you were SURE was the sign that it was right. Then, finally another 32 pip bullish candle right as some news came out. Then it throws a doji or a hammer or something else and then it reverses. AHA! THE PATTERN WORKED!

Therein lies the danger of patterns without considering context.

As kinspk pointed out, gain some experience by doing some demo or small live trading. Looking for patterns is not inherently a bad thing. Patterns are patterns for a reason. They do occur over and over and they do produce results. AT TIMES. You just need to go back, scan for these patterns and look at the context of the PA in which they do work and look at when/where they DON'T WORK. Things to look for and become familiar with are the time of day, before or after news releases, after a big run up/down, after heavy or aggressive whipsawing, after extended consolidation, etc... WHEN do they work and WHAT is the context? Those, are your friends.

Huck-

If you are just starting to learn the patterns, i would suggest you pick a few highly reliable ones and learn them first. Once you are familiar with a couple then feel free to add a few more. Trying to learn all of them at the same time will get very confusing.

Totally agree.

Wow just wow at BogiFX,

I can't believe you feed the answer like that to newbie who can't even self learn...

Telling them to google is ok because you know


You give them a person a fish they eat it for a day, you teach them how to fish.... they eat for a life time...


Being nice is ok but some people just doesn't deserve $ if they can't self learn.....

I don't understand, what was wrong with the reply from BogiFX ?

Was it too complicated or not detailed for a beginner to use ?

I also am quite a beginner, and this pretty much opened my eyes and made me curious to learn more about these patterns

unless rommark is a clueless about trading, then he should know better than to ask such a question
Anyone who's been around for a while knows all these patterns and more importantly, where to get the information freely.

nickyoption,

the patterns it self is information that can be "easily found" on google. If the person have the "will to want to succeed" he would already "search information about those pattern he listed online. He is just lazy and his future will not be good if he can't do "self learning".

The reply from BogiFX is not wrong, but I just want to point out he was being used/waste his time by a lazy person....even though it probably take him like 15 min to gather the info.

Since you are new nickyoption, you should read this thread if you think pattern is simple: http://www.forexfactory.com/showthread.php?t=86766
This whole thread is ALL about 1 pattern "inside bar". It has about 10,000+ post.

Patterns are only illusions in the human brain.There are no such things as patterns in a market as random as forex.

That doesnt mean that the market is totally random, it just means that you are "knocking on the wrong door", to say.The same mistake as 99% of newbies do.

Hey rommark,


Looks like you are interested in price action trading. I would like to recommend 2ndskiesforex to chek out articles on these PA patterns.

If you want to improve your trading stop focusing on patterns and instead focus on properly reading the market. We don't trade patterns, we trade market sentiment. That's the holy grail. Zoom out and take a close look at the chart. Who is winning? Buyers? Sellers? Or is the market in equilibrium? When you figure this out patterns look silly. Patterns are like fonts but they're not words per se.