Chart patterns like triangles, or the famous head and shoulders formation are often referenced in the technical analysis of forex trading. For example, a reversal chart pattern like the double top can indicate that the top has been reached and a southward turn in the price is more likely than further gains.

Are forex patterns legit?

Well, this depends on the trader you ask. Most say that patterns along forex indicators are not something you should rely on exclusively, but rather an additional piece in the puzzle that might be relevant in some cases.

The best is to always gather as much information as possible. This also includes fundamentals, like macro data about the economies represented by the currency pair in question.

Author of this article

Krisztián Gátonyi

Author of this article

Krisztián has 10+ years of experience in proprietary trading in the interbank currency market as a foreign exchange risk manager. He is interested also in real estate and dividend growth investing. His purpose is to help people find the best investment provider.

Krisztián Gátonyi

Senior Broker Expert

Krisztián has 10+ years of experience in proprietary trading in the interbank currency market as a foreign exchange risk manager. He is interested also in real estate and dividend growth investing. His purpose is to help people find the best investment provider.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

Share

Comments

×