Hello friends, as promised last year that I will work so hard in 2022 in helping others in improving their knowledge in trading. So I decided to use my platforms in doing so. This is my first article on this blog and I believe I will continue uploading and sharing more educational contents on this blog in the days to come.
In this article I will share some of my secrets, yes secrets that I have found in trading and that had helped me to trade the Forex and stock market successfully. When I say successfully I mean it. That is why I have decided to help others and of course you to becoming better in this field. First, I want to warn you in case you are here for some Holy Grail Strategies that will eventually give you millions in few months. If you are here for that then let me tell you to stop reading this right away, because what I present here will require your dedication and willingness to continue learning. With a lot of practice from your side I believe this shall help you improve the way you view the market and even give you confidence to enter the market on your own with no indicators, expensive software or an signals whatsoever.
Shall we start?
First let's talk about patterns. What really is a pattern?
A pattern is the repeated or regular way in which something happens.
One can say it is a diagram or a shape or it is a way something is arranged.
Patterns are everywhere around us, in the palm of your hands, the celestial like the stars in the sky and even in nature. Take an example a flower and the way the patterns in flowers were designed. On a single tree you will find a lot of flowers and in most cases the design and patterns in those flowers would look the same. It can be different with the flowers you find on a different tree. The point is, every tree will have unique flowers that looks the same.
Why are patterns important?
Patterns provide a sense of order in what might otherwise appear chaotic. Researchers have found that understanding and being able to identify recurring patterns allow us to make educated guesses, assumptions, and hypothesis; it helps us develop important skills of critical thinking and logic.
Interestingly, patterns are also seen in Forex and stock market, at least on any chart you lunch. Be it of commodities, indices, metals, currency pairs or even cryptocurrencies. You may wonder: Why do these patterns form in forex and stock markets? The answer is simple, they form based on human behavior. Have you heard the saying, "This boy is just like his father?" That can be because the boy behave like the father. Meaning, a father's qualities can be passed on to a son. That is genetic.
So through out history patterns have been observed in the market and these patterns repeat themselves and they tend to bring the same outcome because human behavior never changes, at least at some degree. As I said, knowing about these patterns can help you improve your trading and give you confidence in entering the market without fear.
Patterns can help you at least in many areas:
They can help you know the direction of the market in short term and long term
They can help you have precise entries
They can help you set accurate targets
They can help you set proper risk and money management
There are different type of chart patterns in Forex and Stock markets. These patterns are grouped, there are traditional chart patterns and there are harmonic chart patterns. Traditional chart patterns are easy and basics. These patterns are categorized as continuation chart patterns, reversal chart patterns and neutral chart patterns.
Some of the traditional chart patterns are:
Head and shoulders
As of harmonic chart patterns we find reversal chart patterns which are:
The Gartley pattern
The BAT pattern
The ABCD pattern
The butterfly pattern
The crab pattern
Harmonic chart patterns are a bit complex, but with more practice one can master them.
Let's take a look at the chart below. This is Gold on 4 hour timeframe. First one on our left bottom corner we see a falling channel, one can say a falling rectangle. What happened when this pattern got violated to the top? The market rallied up, giving us that strong impulsive move labelled A. From there the market formed a triple top and once the neckline was broken the market moved very fast to the downside, giving us that strong impulsive move labeled B. Changing direction, the market formed a bullish flag and once the flag got violated to the top the market again rallied up (the impulsive move labeled C).
Do you see why this patterns are very significant?
Do you see where you could have entered the market and perhaps where you could have gotten out?
Patterns are all over, not only would you be given opportunities to enter trades precisely, but these chart patterns also confirm the direction of the market. Take for an example a bull flag. What do we know about it? We know that it is a continuation pattern, it appears in the market that is rising up, the formation of the bull flag confirms that the bullish move (market going up) is still likely to occur. That's why when a bull flag gets violated to the top the market spikes up or continue rising.
Once mastered, patterns can offer a very unique strategy and technique to retail traders which can guarantee good investment return in the long run. The are more to patterns, but what you can learn altogether is simple and yet powerful when applied to the market. As said earlier I will continue to shed light on many things about the financial market, things that can help each one improve in trading, become full-time traders and help others around the world.
That is why I have created this blog which will be full of free educational stuffs. I have also created a telegram channel where I upload videos about different subjects. Throughout this year I will engage members of this channel will more educational videos. In case you want to be part of this channel, I decided to open doors to 50 people who would like to join this channel. There's always a fee to become a member of this channel but this time, I will bring it very very low for the first 50 people.
In this channel you receive videos on many topics from market confluence, liquidity pools, order blocks and a simplest approach in identifying chart pattern developments which can be applied to different markets, Nasdaq100, US30, Currency pairs, metals and even commodities. Again, it is all up to you to continue improving your knowledge and sharpen your trading skills.
You will not only get access to videos but you will have an opportunity to ask me questions directly and to also engage with other members.
If you wish to be part of this channel then you can take this opportunity to be part of it by taking this invitation being offered to the first 50 people with a once off subscription fee of $35 and you will be part of this channel for lifetime.
If you take this offer, please chat to admin to be added to the channel and begin learning from the videos that are already posted there.
A wise man once said, 'Learning is essential to our existence. Just like food nourishes our bodies, information and continued learning nourishes our minds.' Today, continuous learning forms a necessary part in acquiring critical thinking skills and discovering new ways of relating to different things about life. Forex is not only a hobby to some of us, but it is a business, in fact it is that one giant business that can improve our lives for the better.
Are you a real Forex Trader or do you want to become one? If you are then I encourage you to never stop learning. There are plenty of information out there, although you need to be very cautious with information you take in your mind, some information can corrode your mind and affect the way you view the market. But that is nothing to scare you, continue standing up for you and continue seeking for knowledge. If you do, I promise you one day you will think and breath Forex!
If you want to join the