Chart patterns and price action
Chart patterns, breakouts and market structure, and how to test them before you trade them.
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- 1Reversal patterns: head and shoulders, double top and double bottomSpot a head and shoulders or a double top, wait for the neckline break, measure the target and place your stop. Worked examples on EUR/USD and gold.6 min read
- 2Continuation patterns: triangles, flags and wedgesAscending, descending and symmetrical triangles, flags and wedges: how these pauses form, when to trade them and how to work out the target and the stop.6 min read
- 3Channels: trade inside the channel or trade the breakoutDraw an ascending or descending channel, trade the bounces inside it or the breakout, and place your stops. Step-by-step method with a worked EUR/USD example.6 min read
- 4Breakouts and fakeouts: how to spot the real signalClose, volume, retest: what makes a valid breakout. Learn why false breakouts and stop hunts happen, then practise reading breakouts bar by bar in replay.6 min read
- 5Gaps: when price jumps over a levelCommon, breakaway or exhaustion gaps: how gaps form on stocks, indices and weekend forex, whether they really fill, and how to protect your stop from them.6 min read
- 6Price action: how to read market structureRead market structure without indicators: higher highs and lower lows, change of structure, supply and demand zones, and pin bars at the right level.6 min read
- 7Elliott waves and harmonic patterns: principles and limitsThe 5-wave impulse and 3-wave correction, the three Elliott wave rules, harmonic patterns in brief, and why these methods remain highly subjective.6 min read
- 8Backtesting a chart pattern: measure instead of believingTest a chart pattern on historical data with written rules and a real sample size, free of survivorship and look-ahead bias, to measure your true win rate.6 min read