Is the forex market best for pattern trading?

Mr.G

Well-Known Member
#1
I have read on multiple sources that patterns are highly successful in forex markets due to their speculative nature and immunes to manipulation.
 

DSM

Well-Known Member
#2
Mr. G, You have been asking this question many times over. I have preferred not to comment because my view of using Harmonic chart patterns is negative - Did not want to discourage you. Again, I may be wrong on Harmonic patterns. If you really wish to explore this further, you can look at chart partterns of INRUSD/INRGBP/INRJPY/INREURO pair, and see how many times such patterns are formed and how you could trade them.

Also note you wish to learn TA - If you are really serious, suggest you learn pure Price Action trading and study of Candlestick chart patterns. By this - derive your conclusion from Price Action, and from Candlestick bars formed from price and not from indicators derived from Price Action. (Not to say that these cannot be used)

Price Action along with Candlestick pattern is quite more rewarding intraday or otherwise. This is just my 2 bits.

For Price Action trading, Google Nial Fuller.

Good luck.

I have read on multiple sources that patterns are highly successful in forex markets due to their speculative nature and immunes to manipulation.
 

Mr.G

Well-Known Member
#3
My approach is not limited to harmonics as yet. I have a book full of classical chart patterns as well. What do you think about those?

Can you explain what is price action exactly? I am learning from candlestick chart patterns only. Trade like the pros by suri duddella. and MM by ryan jones.

I am raelly desperate to learn, I focus on everything I learn with a fully researched and systematic way as to not waste my time. I did the same with FA, i locked down to value investing and then dividend growth from then on.

I was planning to trade chart patterns and then lock on into my personal niche in that as well.
 

DSM

Well-Known Member
#4
In the context that the bars are formed (time period of chart that you refer to) each bar is a fight between a bull and the bear, a buyer and the seller. Unless the market is in a sideways range, one side is the winner and prevails over the other.

The bars formed in this struggle between the Bulls and the Bears reveal a story. Price Action is understanding what type of Candlestick BARS are formed and in which area of the chart - the context is important here. The Candlestick patterns become words that give meaning to the story.

Learning PA and Candlestick together, you will get an insight as to the important areas of the chart. i.e if these are near/close to Support, Resistance, Breakout, Breakdown, Retracement Area, Pullback etc. The idea is to UNDERSTAND AND TRADE WITH THE TREND OR IN AREAS WHERE THE PRICE HAS FOUND SUPPORT OR RESISTANCE, is BREAKING OUT OR BREAKING DOWN OF A RANGE. These are highly probability trades, with good Reward to Risk.

Good luck.

My approach is not limited to harmonics as yet. I have a book full of classical chart patterns as well. What do you think about those?

Can you explain what is price action exactly? I am learning from candlestick chart patterns only. Trade like the pros by suri duddella. and MM by ryan jones.

I am raelly desperate to learn, I focus on everything I learn with a fully researched and systematic way as to not waste my time. I did the same with FA, i locked down to value investing and then dividend growth from then on.

I was planning to trade chart patterns and then lock on into my personal niche in that as well.
 
#5
My approach to the harmonic patterns is negative as well. It used to be working, when there were a lot of people involved in this kind of trading. Although, I know a lot of people who believe that it is working very well even now. They are discovering new patterns, sharing the success etc. So you might try to find them and get in touch with.
 

neo1599

Active Member
#6
Depends on which pair you choose to trade and which TF the pattern comes up on. For example a lower TF pattern might be getting negated by a higher TF pattern being formed.

Yes, international spot FX markets are better for pattern trading(I am excluding USD/INR etc in this).

Please note though most of trading is about Patience, Money Management and strategy.

Patterns work but you need to work out fake-outs, possible bigger TF/News factor influence to recognise and then trade the pattern.

Cheers
 
#7
All markets have patterns in them. All of them have setups that traders can take advantage of to find profitable patterns. You really should learn something about price action trading before you dig further into the markets. That being said, I like the Forex markets, there is lots of liquidity, volume, and volatility that makes for a lot of great trading opportunities.
 
#9
Forex market is very volatile and unpredictable market, so I seem; only specific patterns are not enough here! If you want to be a successful Forex trader here, then you need to know technical and fundamental analysis very deeply! Please don’t stop your learning process, try to learn and grow your trading skill in every day!
 

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