Trade those patterns that are the most natural for you. Some people are very good detecting divergences, others are more focused on pullbacks, while others may use triangles as their favorite pattern. It takes a while to develop such a skill but it is something that happens naturally if you spend enough time looking at charts. A favorite pattern is something that you detect over and over again, and then you start to develop strategies to profit from that recurring event you’ve observed. Read More
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VIDEO: The Secret of Chart Patterns - Dean Malone
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REPORT: Two of the Four Patterns of the Forex Market - Rick Wright
Editors’ Picks
EUR/USD stays below 1.1850 after dismal German sentiment data
EUR/USD stays in negative territory below 1.1850 in the second half of the day on Tuesday. Renewed US Dollar strength, combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.
GBP/USD falls toward 1.3550, pressured by weak UK jobs report
GBP/USD remains under bearish pressure and extends its decline below 1.3600 on Tuesday. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.
USD/JPY slides further below 153.00; eyes 200-day EMA amid a firmer JPY
The USD/JPY pair meets with a fresh supply on Tuesday and slides further below the 153.00 mark heading into the European session, reversing a major part of the previous day's positive move. Spot prices, however, manage to hold above the 200-day Exponential Moving Average support, around the 152.50 region, preserving a tentative bullish bias despite a shallow cushion.
Editors’ Picks
EUR/USD stays below 1.1850 after dismal German sentiment data
EUR/USD stays in negative territory below 1.1850 in the second half of the day on Tuesday. Renewed US Dollar strength, combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.
GBP/USD falls toward 1.3550, pressured by weak UK jobs report
GBP/USD remains under bearish pressure and extends its decline below 1.3600 on Tuesday. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.
Gold recovers modestly, stays deep in red below $4,950
Gold (XAU/USD) stages a rebound but remains deep in negative territory below $4,950 after touching its weakest level in over a week near $4,850 earlier in the day. Renewed US Dollar strength makes it difficult for XAU/USD to gather recovery momentum despite the risk-averse market atmosphere.
Canada CPI expected to show sticky inflation in January, still above BoC’s target
Economists see the headline CPI rising by 2.4% in a year to January, still above the BoC’s target and matching December’s increase. On a monthly basis, prices are expected to rise by 0.1%.
UK jobs market weakens, bolstering rate cut hopes
In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.
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