The following cheat sheet will help you to identify the most common technical patterns that appear in forex charts. Click each heading for more information.
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.
A broadening wedge is a range where the price is holding between two trend lines that are moving apart. The pattern is also named a "megaphone" because of its shape.
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.
Of the triangular patterns found in forex charts, the symmetrical triangle is possibly the most confusing and also the most difficult to trade. But how useful is this chart pattern in practice?