Chart Patterns

Chart Patterns

Chart Patterns

Opening positions based on price action

Usually the price action is defined as the money footprint. Traders reading and interpreting raw price action and identifying trade opportunities as they occur. While still a form of technical analysis, the use of clean or ‘naked’ charts involves price action; no indicators to clutter the charts. Patterns are the highest form of analysis of price action, and help traders track trends as well as map definitive support and resistance zones. Unlike numerous technical analytical indicators that are inherently lagging in nature, chart patterns are in fact leading and allowing traders to effectively and efficiently create time market opportunities. This means traders can place orders on the market early enough and at optimum price points to buy and sell.

Setting price targets for conditional orders

Conditional orders are orders that attach special parameters that must be met before they are executed in the market. Chart patterns are usually rule-based and have specific price targets when they form. This makes chart patterns the ideal analysis type for trading conditional orders, where specific price levels are targeted.

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