Bats are five point chart patterns that can point towards either a bullish or bearish breakout.
They are quite similar in appearance to the butterfly...
A fading strategy bets against any move that takes the price out of a normal range. Another way of putting it is that fading is a bet on mean reversion.
A squeeze is where the market is moved to an extreme value in a short space of time. These moves are often temporary, and so they can create some good trading opportunities for turning a quick profit.
A bullish breakaway is a chart reversal pattern that can appear in either a bullish or bearish market. In cases it can also be profitable to trade it on the sell side, as a contrarian trade.
In the early 1980’s an experiment took place to find out if it is possible or not to take a bunch of ordinary people off the street and turn them into trading moguls.
The descending broadening wedge is easily spotted on a chart. It looks like a megaphone with a downwards tilt. It’s equally likely to appear in downtrends as well as uptrends.
The ascending broadening wedge is a chart pattern that can be traded in several ways; either as a bullish/bearish breakout or with a swing trading strategy.
Not all channels are easy to trade. In practice most aren’t. So an essential part of a price channel trading system is deciding which to trade and which to ignore.
When a falling wedge pattern appears in a forex chart it hints at bullish sentiment. Like the rising wedge, this pattern is quite common at all time scales.