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Nvidia (NVDA) published its highly anticipated third-quarter report late on Wednesday night, and to everyone’s delight, the company beat earnings and issued a strong outlook for fourth-quarter revenue. The New York Stock Exchange was exuberant the following morning, with Nvidia and the wider stock market opening high. Celebrations were quickly cut short however, with markets undergoing a dramatic shift mere hours later as heavy profit-taking took hold. By the end of the day, Nvidia was over 3% down, dragging everything down with it. The Nasdaq Composite closed Thursday’s session 2.2% in the red, while the S&P 500 and Dow Jones lost 1.6% and 0.8% respectively. The selloff exposes the lingering fears of a tech bubble, as investors were happy to take the exit door despite the stronger-than-expected earnings report. Markets also faced the added complication of yesterday’s delayed September NFP publication. The report revealed that the US labour market added 119,000 new jobs in September, completely surpassing the expected figure of around 50,000. Good news on the face of it, but the latest numbers complicate the Fed’s path forward. The odds of a December rate cut were around 50/50 before the latest data release, but are now leaning 65/35 in favour of a rate hold. An environment of strong employment numbers, coupled with stubbornly high inflation, is not typically countered by lowering interest rates. Strength has certainly returned to the Dollar this week, pushing the DXY back over 100 yesterday. Other currencies are feeling the wrath of the Greenback, none more so than the Yen, which fell to 157 against the Dollar over the past couple of days and is now approaching yearly lows. Should expectations continue to shift away from a December rate cut, the Dollar may encroach even further on the majors before the year is over. The relentless selling in Bitcoin continued yesterday, this time driving prices down to $86,000. Bitcoin has lost $40,000 since the 6th of October, but the price action in the last ten days has been particularly brutal, with no relief to be found. If there is a silver lining, it is that the wider crypto markets are once again showing more backbone, leading to further declines in Bitcoin dominance. No one in their right mind is calling for alt season as of yet, but the limited contagion is at least somewhat encouraging. #Nvidia #Crypto #NFP

Everyone is nervous ahead of two major data releases over the next couple of days. The first is the latest quarterly earnings from Nvidia (NVDA), scheduled for later today; the second is the delayed September NFP report, set for publication on Thursday. Tech stocks are not handling the situation well, but then again neither is anything else. Amazon (AMZN) continued its recent slide yesterday, closing the day 4.4% in the red; Advanced Micro Devices (AMD) lost 4.3%; Microsoft (MSFT) declined 2.7%. All in all, the tech-heavy Nasdaq Composite index shed 1.2%, while the S&P 500 and Dow Jones fared little better. The poor sentiment has spread far and wide, weighing particularly heavily on Asian markets. In Japan, the Nikkei 225 lost 3.2% yesterday – the index’s biggest loss since April; in Korea, the Kospi index was down 3.3% by the daily close; Hong Kong’s Hang Seng index meanwhile shed 1.7%. While not as severe, European stock markets also sustained losses yesterday. Investors are worried about a bubble in the technology sector, specifically surrounding companies focusing on artificial intelligence. Given the leading role that Nvidia occupies within the AI sphere, markets are understandably jittery about the chipmaker’s financials. Adding to the uncertainty is the September jobs report, which should have been published six weeks ago. While interest rate traders are still on the fence as to which way the next FOMC meeting will fall, weaker jobs numbers may force the Fed into lowering rates in a bid to stimulate the US labour market. Crypto traders are frantically trying to figure out whether the dump is over or if there is more pain to come. Bitcoin printed a sizeable lower wick yesterday, briefly dipping below $90,000 before finishing the day in the green around the $93k mark. The wider crypto markets were not impressed, allowing Bitcoin to take the lead on the most recent selloff, leading to another drop in Bitcoin dominance. Sadly, yesterday’s gains have already been wiped out as of this morning, and Bitcoin is once again in the red for the year. #Bitcoin #Nvidia

Welcome to the crazy, migraine-inducing world of Forex trading; the market that never sleeps and occasionally eats traders alive for breakfast. With over $7 trillion sloshing around daily, it’s the biggest and loudest casino in town (except this one doesn’t give you free drinks while you lose money). The problem? Forex has its own language, and if you don’t speak it, you’ll feel like a tourist trying to order food in Budapest knowing only three words of the local lingo and a lot of hand gestures. That’s where this guide comes in. We’re going to cover 30 forex terms every trader should know and w will explain it in plain English. So, strap in here we go………. Every forex trade involves two currencies battling it out, like two drunk guys arguing over who’s paying the kebab bill. The first currency is the base currency, and the second is the quote currency. Example: EUR/USD. Here, the euro (EUR) is the base, and the U.S. dollar (USD) is the quote. If EUR/USD is trading at 1.15, that means you need $1.15 to buy €1. Simple enough…sure, until it starts moving against you. The base currency is the first one in the pair, it’s the star of the show. The quote currency is the second one, the sidekick who decides how much you’re going to suffer. Example: GBP/USD = 1.35.Translation: To buy £1, you’ll need $1.35. Or, in trader-speak, “The pound is way too expensive at the moment”. Leverage is basically trading with borrowed money, like buying 10 drinks when you have only got enough for one, hoping your future self can pay for it. Brokers love offering leverage because it makes you feel powerful. You can control huge trades with a tiny deposit. The snag? It amplifies your wins and your losses. While you could double your money, you could also blow your account before you’ve finished your first coffee. The bid is the price buyers are willing to pay. The ask is the price sellers want. The difference between the two is called the spread, and it’s basically the broker’s way of charging you rent for playing in their playpen. Example: Telsa stock might show: If you sell, you get $330.00. If you buy, you pay $333.40. That a 40-cent difference you ask? That’s the market smiling at you. The exchange rate tells you how much of one currency you need to cough up to buy another. It constantly changes based on supply, demand, economics, and political chaos (of which there’s never a shortage). Example: You travel to Japan with $1,000. If the exchange rate is 1 USD = 150 JPY, you get ¥150,000. If it later shifts to 1 USD = 145 JPY, congrats — your $1,000 now gets you less Sushi. Traders live and die by these fluctuations. Margin is the amount of money a trader must deposit with their broker in order to open a position in the market. The trader essentially makes a deposit to show that they can cover the potential losses. A pip is the smallest unit of price movement in forex. It usually lives in the fourth decimal place (except the Japanese yen, which stops at two decimal places). Example: EUR/USD moves from 1.2000 to 1.2001 → that’s one pip. In real money terms, one pip in a standard lot often equals $10. Which means 100 pips can make you $1,000… or cost you $1,000. A pip can feel tiny until a swarm of them wipes out your account like financial locusts. In forex, you don’t buy “just a bit” of a currency, like grabbing a single chocolate from the box. You buy in lots, pre-set bundles of currency. When you hit “buy,” you’re basically signing up for a truckload of currency, not just a pocketful of coins. Two moods dominate the market: Bulls charge upwards, bears swipe downwards. You? You are just trying to keep your shirt on your back. The spread is the gap between the bid and ask price — basically, your hidden “entry fee” to the forex party. Example: EUR/USD That means if you buy and immediately sell, you lose 2 pips instantly. Spreads are why day traders mutter under their breath and why brokers can afford nicer cars than you. Resistance is that annoying price level where the market refuses to go higher, no matter how many times it tries. Think of it as a financial ceiling, every time price jumps up, it smacks its head and falls back down. Traders call this “resistance.” I call it the market saying, “Not today buddy.” A quote is simply the last agreed-upon price of a currency pair. Nothing fancy. It’s like the market saying, “This is what people were willing to pay five seconds ago, but good luck getting the same deal now.” A position is just your stance in the market. You’re either: In other words: you’re either the optimist who believes tomorrow will be better, or the cynic who profits from everyone else’s misery. Either way, the market doesn’t care, it will happily punish you both. An open position is a trade you’ve entered that’s still active. It’s basically a time bomb ticking away in your account, either making you money or slowly strangling your margin. A closed position means you’ve exited the trade. Whether you’ve cashed in a profit or taken a loss, the important thing is that the torture has ended… at least until you open your next trade. Candlestick charts are how traders visualise price action. Each candle shows four things: open, high, low, and close within a set time period. Green candles = price went up.Red candles = price went down. They are called “candlesticks” because they look like candles with wicks. Sorry, I could not think of any candle jokes! A carry trade is when you borrow money in a currency with low interest (cheap debt) and invest it in a currency with higher interest (juicy returns). Sounds clever, right? Until the low-interest currency suddenly strengthens and your “genius strategy” turns into a financial sinkhole. An open order is an instruction to buy or sell at a certain price, but it hasn’t been executed yet. Think of it as putting your name on the waiting list for disappointment. If the market reaches your chosen level, the order gets filled. If not, it just sits there, mocking your optimism. This is the opposite of a limit order. A stop-entry order kicks in when price moves past a level you set, assuming the trend will keep going. For example, EUR/USD is 1.1500, and you place a stop-entry to buy at 1.1600. A take-profit order is your way of locking in gains before greed convinces you to hold forever. You set a price target, and when the market hits it, the broker closes the trade automatically. It’s the financial equivalent of quitting while you’re ahead, something most traders are absolutely terrible at. The stop-loss is your emergency eject button. You set a level where the broker will automatically close your trade if the market turns against you. It’s not pretty, but it saves you from total annihilation. That said, many traders either:a) Don’t use stop-losses or move them thinking the move has to reverse.b) Set them too tight and get stopped out right before price reverses in their favour. We all have been there. A market order means you’re buying or selling right now at the best available price. No conditions, no waiting, just instant execution and you are trading. A limit order is when you tell your broker, “I’ll only buy or sell at this exact price, nothing worse.” It’s basically drawing a financial line in the sand. Of course, the market doesn’t care about your lines and will often dance just above or below them, leaving you stuck watching trades you never got into. Execution is when your order is actually filled. Sounds simple, but timing matters. There’s instant execution (you get filled immediately at the current price) and delayed execution (your order waits until price hits your chosen level). In theory, it’s precise. In practice, volatility can turn “instant” into “oops, slipped by 20 pips; sorry about your stop-loss pal.” When a currency appreciates, it gains value against another. In other words, it suddenly gets more expensive. This usually happens when the country’s economy is doing well, or when traders are panicking out of weaker currencies. For traders holding the appreciating currency, it’s a reason to celebrate. For everyone else, it’s a reminder that the market doesn’t really care about you or your trade. Depreciation is the ugly sister of appreciation. It’s when a currency loses value compared to another. Suddenly, your money buys less, your imports cost more, and your forex positions look like a crime scene. Example: USD drops from 0.85 EUR to 0.80 EUR. That’s depreciation. Or, as traders like to call it: “Well, there goes my weekend.” Risk management is trader-speak for “trying not to go broke too quickly.” It involves things like setting stop-losses, limiting leverage, and not putting your entire account on the one “sure thing” (ouch!). Smart traders use risk management religiously. Dumb traders… provide liquidity for the smart ones. Your portfolio is just the collection of assets you’re trading. For forex traders, it usually means holding different currency pairs. Diversification spreads your risk. Liquidation is when your broker closes your losing positions because you’ve run out of usable margin. In simpler terms: the broker yanks the steering wheel out of your hands before you drive your account straight into bankruptcy. It’s humiliating, but it’s also the market’s way of saying: “You should’ve managed your risk, champ.” Volatility is how fast and how wildly prices move. Traders love it because it creates opportunity. They also hate it because it creates carnage. High volatility = the market is manic.Low volatility = the market is boring (and you’ll probably force a bad trade out of impatience). Slippage happens when the price you expected isn’t the price you actually get. In fast-moving markets, your trade might execute a few pips away from where you wanted, sometimes better, often worse. It’s the forex equivalent of ordering a steak medium-rare and getting it well-done. Technically edible, but not what you ordered. Forex trading has its own language, and if you don’t learn it, the market will happily teach you the hard way (usually by taking your money). Now you’ve got 30 key terms under your belt, you can at least sound like you know what you’re doing, even if your account balance says otherwise. Happy Trading.

Traders are less convinced than ever of an incoming rate cut. FedWatch is now suggesting that rates will be maintained at 4% during the next meeting on the 10th of December. Economic uncertainty is brewing and markets are growing fearful that more substantial pullbacks may be on the cards. US indices were a mixed bag last week, as the rally in tech stocks appeared to stall. The real drama however unfolded in precious metals and cryptocurrencies. Gold prices fell by 2% on Friday to close the week at $4,085, while silver lost over 3% to fall back to $50.50 per ounce. Last Friday, Bitcoin finally gave up on six-figure prices, falling to $94,000 and staying there for the remainder of the weekend. The title of “digital gold” seems increasingly hard to defend given Bitcoin’s lacklustre performance over the summer, especially when compared to the massive rallies observed in precious metals. Bitcoin has notched several record highs so far this year, but so too has almost everything else. Gold is up 55% year-to-date, silver is up 75% over the same time frame, the S&P 500 is up 14%, the FTSE 100 is up 18%, the Nikkei 225 is up 25%, the list goes on. Meanwhile, Bitcoin is up around 2% and major altcoins are down by double-digit percentages. A dart thrown at a dartboard would have yielded better results. Despite the dismal mood pervading crypto at the moment, there is still reason for optimism, as a number of institutions have continued to invest in Bitcoin ETFs. Most notable among them was the Harvard University endowment, which recently disclosed a $443 million stake in BlackRock’s iShares Bitcoin Trust (IBIT), representing 20% of the university’s US-listed holdings. There is also the growing question of Bitcoin dominance, which has been exhibiting some strange behaviour during recent dumps. Typically, drops in the price of Bitcoin would prompt even larger drops in the wider altcoin market, leading to an increase in Bitcoin dominance. Recently however, the correlation has fallen apart, with altcoins holding up relatively well and the wider crypto market actually faring better than Bitcoin itself. The economic calendar is looking sparse again this week, with the exception of three major events. Earnings season is drawing to a close, but one major player has yet to report: Nvidia (NVDA). The chipmaker will publish third quarter earnings late on Wednesday, and given the ongoing question of a possible AI bubble, the report could provide pivotal insight into the health of the wider tech sector. On Thursday, the Bureau of Labor Statistics will at long last publish the September NFP figures, initially set for release on the 3rd of October. Markets have been starving for such information for over six weeks at this point, but the wait is finally over. Later in the day, the Fed will publish the minutes from the October FOMC meeting. The additional comments from various board members may offer some clues as to the general sentiment of the Fed, which will no doubt influence expectations for the December meeting. #Bitcoin #Nvidia #Crypto

The shape looked right. You drew the neckline, waited for what seemed like the break, took the entry, and price turned straight back through your level. What was missing was never the ability to spot the pattern. It was the absence of rules for what counts as confirmation, where the stop belongs, and how far the target sits. This guide covers how to recognise 15 of the patterns that appear most often on forex charts, one trading process that applies to every one of them, and what to do when a pattern fails. Failure is part of the job here, not an afterthought. Chart patterns are recurring structures that price forms on a chart, and they fall into three groups: reversal, continuation and bilateral. Each group tells you whether the current trend is likely to keep running or turn. A pattern on its own is not a reason to enter, though, because the breakout still has to be confirmed, and it is the height of the pattern that sets both the target and the stop. Open your trading account today with Radex Markets. A chart pattern is a recognisable structure that price movement forms on a chart, reflecting the tug of war between buyers and sellers across a particular price area. These shapes repeat because the behaviour behind them repeats: traders hesitate at the same kinds of levels, take profit in the same kinds of places, and give up at roughly the same point. A pattern is a record of crowd behaviour, not a forecasting tool. That distinction runs through the whole of this guide. The pattern tells you what might happen; the confirmation conditions tell you whether to act. Treat those two as the same thing and you will spend a lot of money finding out they are not. Every chart pattern belongs to one of three groups, defined by what it implies about the trend already in place, and that grouping is the first filter you apply when reading a chart. The table below sets the three side by side. A bilateral pattern deserves particular care, because the temptation is to decide which way it will resolve while it is still forming. It has not chosen yet, and neither should you. The group a pattern belongs to also decides which side of the structure your stop sits on: reversal patterns put it beyond the extreme of the pattern, continuation patterns put it on the far side of the consolidation. Each of the fifteen sections below covers one pattern. Jump straight to the one you want from the list here. The table below gathers all fifteen onto a single screen, so you can compare where the signal sits and how each one tends to go wrong without scrolling through every section. Three peaks form in sequence with the middle one standing highest, and a neckline joins the two lows that sit between them. The signal is a close below that neckline, and the target is the vertical distance from the top of the head down to the neckline, projected downward from the break. The way this one most often goes wrong is that price slices through the neckline, everyone piles in short, and then price climbs straight back above it within a couple of candles. A neckline reclaimed that quickly is not a delayed signal. It is a cancelled one. Read more: Head and shoulders pattern trading strategy for beginners This is the mirror image, appearing at the end of a downtrend: three troughs with the middle one deepest, and a neckline across the two highs between them. The signal is an upward close through the neckline, and the target is measured the same way, projected up from the break. What separates it from a double bottom is the middle low. In an inverse head and shoulders that middle trough sits clearly lower than the two beside it; in a double bottom the two lows are roughly level. Get that wrong and you will measure the target from the wrong point. Two peaks form at a similar height with one low between them, and the signal is a close below that middle low. The target is the distance from the peaks down to the middle low, projected down from the break. If the second peak is clearly higher than the first, the pattern does not stand. That is not a variation on a double top; it is an uptrend making a higher high, and trading it as a reversal means shorting into strength. The mirror image of the double top: two troughs at a similar depth with one high between them, forming the W shape most traders recognise on sight. The signal is a close above that middle high, and the target is the distance from the lows up to it, projected upward. The two lows need enough time between them to mean anything. Two troughs three candles apart are noise inside a single move, not a market testing a floor twice and failing to break it. Both boundaries rise, but they converge as they go, so the structure narrows while it climbs. It looks bullish and usually resolves bearishly, which is exactly why it catches people out. The signal is a close below the lower boundary, and the target is the widest part of the wedge projected down. The convergence is the tell. Each new high is arriving with less room above it than the last, which is what fading buying momentum looks like drawn on a chart. The mirror image: both boundaries fall while converging, and it usually resolves bullishly. The signal is a close above the upper boundary, with the target taken from the widest point and projected up. The thing to check is whether the boundaries actually converge. A falling channel has parallel boundaries and carries no such implication, and the two look similar enough at a glance that traders regularly treat one as the other. A sharp advance forms the pole, then a small counter-trend consolidation drifts down or sideways to form the flag. The signal is a close above the flag's upper edge, and the target is the length of the pole projected from the breakout point. Quality drops sharply once the flag retraces more than half the pole. At that point the move you were planning to join has given back most of its ground, and what you are looking at has more in common with a reversal than a pause. Read more: Bull flag pattern: A practical guide for forex traders The mirror image, appearing after a sharp decline: a steep drop forms the pole, then a shallow upward drift forms the flag. The signal is a close below the flag's lower edge, with the pole length projected down from there. Watch how long the consolidation runs. A bear flag that drifts sideways for a long stretch stops being a pause in a downtrend and starts being a base. A pennant differs from a flag in the shape of the consolidation: a small converging triangle rather than a parallel channel. The signal is again a close in the direction of the prior trend, and the target is the pole length projected that way. Pennant consolidations are usually shorter than a flag's. Once the pause stretches well beyond the handful of candles you would normally expect, the momentum that created the pole has probably gone. A horizontal resistance level sits above a series of rising lows, so the structure squeezes upward into the ceiling. The signal is a close above that horizontal level, and the target is the height at the widest part of the triangle projected up from the break. Rising lows are the point of this pattern. Buyers are willing to pay progressively higher prices to get in, which is a different market from one merely bouncing off a floor. The mirror image: horizontal support below a series of falling highs, with sellers accepting progressively lower prices. The signal is a close below that support, and the target is the widest height projected down. If support holds and price breaks upward instead, the read was wrong from the start, which happens often enough that the upside break deserves its own plan rather than surprise. Both boundaries converge at once, neither of them horizontal, and nothing in the structure implies a direction. It sits squarely in the bilateral group, and the signal is a close beyond whichever boundary gives way first. Calling the direction early on this pattern is one of the more reliable ways to lose money with chart analysis. The whole information content of a symmetrical triangle is that the market has not decided, so an entry placed before the break is a guess wearing a technical costume. A rounded base forms the cup, then a small pullback on the right-hand side forms the handle. The signal is a close above the handle's high, and the target is the depth of the cup projected up from the break. A handle that retraces too deeply no longer counts as a handle. The handle is supposed to be a shallow shake-out near the rim, and once it drops back toward the base of the cup the structure has lost the thing that made it worth watching. Price oscillates repeatedly between a horizontal upper boundary and a horizontal lower one, touching each several times. It belongs in the continuation group, and the signal is a close beyond a boundary in the direction of the prior trend. A rectangle that breaks against the prior trend is still a tradable break, but it is no longer a continuation pattern, and the measured move should be projected from the boundary that actually gave way rather than the one you expected to. The structure broadens first and then converges, producing the diamond outline, and it turns up most often at a trend top. The signal is a close below the lower boundary, with the widest height projected down. This is the hardest of the fifteen to identify honestly. It occurs rarely, the broadening phase looks like disorder while it is happening, and a diamond is far easier to name in hindsight than to trade in real time. These three steps apply to all fifteen patterns above. The pattern decides what you are looking at; these steps decide whether you act on it. This section matters more than any individual pattern section, because a trader who knows three patterns and applies these steps will do better than one who can name all fifteen and applies none of them. Confirmation has three conditions. Wait for a candle to close beyond the boundary rather than acting on an intraday touch, because a wick through a level and a close beyond it are different events. Watch whether activity expands on the break. Then check whether the boundary holds when price comes back to retest it. There is a limitation here that most pattern tutorials skip, because most of them are written from a stock market background. Forex has no central exchange, so there is no true volume figure to read. What your platform shows is tick volume, which counts how many times the price updated in a period. It works as a proxy for activity, and it is not the same as executed volume. Treat a volume spike on a forex chart as evidence of attention, not of committed capital. The stop level is decided by the structure of the pattern, not by the amount you are willing to lose. For a reversal pattern it goes beyond the extreme point of the structure: past the head, past the second peak, past the cup's base. For a continuation pattern it goes on the far side of the consolidation, beyond the flag or the pennant. The amount you are willing to lose sets a different variable, which is position size. Structure decides where the stop goes, then risk decides how big the trade is. Doing it the other way round produces stops placed at convenient round numbers that the market has no reason to respect. Read more: 10 Forex risk management tips every trader should know The measured move is the target method every one of these patterns shares. Take the vertical height at the widest part of the pattern, then project that same distance from the breakout point in the direction of the break. One rule, fifteen patterns. Worked GBP/USD Example Take an ascending triangle forming on the GBP/USD four-hour chart. Resistance sits flat at 1.2750, tested three times, while the lows underneath climb from 1.2640 toward it. The widest height of the triangle is therefore 1.2750 − 1.2640 = 110 pips. A four-hour candle closes above resistance and the entry fills at 1.2755. Projecting the pattern height from the break gives a target of 1.2755 + 110 pips = 1.2865. The most recent higher low sits at 1.2700, so the stop goes just beneath it at 1.2695 — a risk of 60 pips. At 0.20 lots on GBP/USD, each pip is worth roughly $2, so the trade risks $120 to make $220. That is a risk-to-reward ratio of 1.83:1. The figures are illustrative rather than a recommendation to trade those levels, but the sequence is the point: the height came from the chart, the target came from the height, and the position size came last. A measured move is a target set by taking the vertical height at the widest part of a chart pattern and projecting that same distance from the breakout point in the direction of the break. It gives the target a source in the structure rather than in a round number. A pattern has to be drawable before it can be read. Whether you can put the same neckline in the same place two days running depends less on your eye than on the tool you are drawing with, which makes the charting package a practical decision rather than a cosmetic one. Four things are worth checking. The table below compares three common options. Automatic detection is worth having, with one honest caveat. It can tell you that a shape matching a descending triangle exists on the chart. It cannot tell you whether that triangle is forming into a level that has already broken twice this month, or whether the break that just printed had any conviction behind it. Treat it as a way to find candidates, not a way to decide entries. Platform features also change between versions, so check the current documentation before you build a routine around one. Read more: MetaTrader 4 You will have seen the numbers. Head and shoulders 89%, double bottom 88%, bull flag 85%, passed between sites as though they were settled facts. They are not, and the reason is worth understanding, because it changes how you read every reliability claim you meet afterwards. Almost none of those figures state a sample size, a period, a market or a time frame. None of them account for spread, slippage or commission, which is where a theoretical edge goes to die. And they contradict each other: one set ranks head and shoulders near the top, another puts horizontal channels at 68% and double tops at 66%, with no way to reconcile the two because neither shows its working. The one body of systematic statistics with a published methodology is Thomas Bulkowski's Encyclopedia of Chart Patterns, which devotes a chapter to how the measurements were taken and whose third edition rests on roughly four times the sample of the second. It is the only source in this area we are willing to cite. It also has a limitation that has to be stated alongside it: the performance figures are calculated on price running to its ultimate high or low, which is a theoretical ceiling rather than a result any trader will achieve, because nobody exits at the exact extreme. So rather than memorising a success rate for a pattern, remember the three conditions that actually make patterns work, which are the confirmation, the stop and the measured target covered above. Patterns fail often enough that knowing the common causes is part of using them properly. Read more: How to Read Forex Charts for Traders Four honest limitations sit underneath this whole method. Knowing these four makes you better at using patterns rather than worse, because each one points at a specific place to be more careful: draw the boundaries the same way every time, size the position for a possibility rather than a certainty, confirm the break with price behaviour as well as activity, and pick a time frame before you start looking. There is no single most successful chart pattern, though historical studies in technical analysis frequently rank the head and shoulders, double bottom and rectangle among the more reliable and profitable ones. Rankings of that kind almost all trace back to Bulkowski's statistics, which are measured on price running to its ultimate high or low. What they give you is the relative order of the patterns, not the result you should expect to achieve on a live account. The ten most widely used are head and shoulders, inverse head and shoulders, double top, double bottom, rising wedge, falling wedge, bull flag, bear flag, pennant and symmetrical triangle. This guide adds ascending triangle, descending triangle, cup and handle, rectangle and diamond to make fifteen, because those five turn up on forex charts just as often as the first ten. A reversal pattern suggests the current trend is losing control, while a continuation pattern suggests the trend is pausing rather than ending. The judgement rests on where in the trend the pattern appears and whether the eventual break runs with or against the prior direction. No. Failure is the norm rather than the exception, and false breakouts are especially common in thin liquidity and around major data releases. Every entry therefore needs a price defined in advance at which the pattern is proven wrong, which is what the stop is for. The structures themselves carry across, but the confirmation does not. Forex has no central exchange and therefore no true volume, so what the platform shows is tick volume, and the general rule of confirming a break with volume has to be supported another way — by the size of the move on the break and by how price behaves on the retest. Higher time frames carry less noise and produce more reliable patterns, with daily and four-hour charts being the common choices. Lower time frames produce more patterns but a higher proportion of false signals, which suits traders who already have a defined trading plan rather than those still building one. We have covered the three categories every pattern falls into, how to recognise fifteen of them and the way each one typically fails, the three-step process that applies to all fifteen, and how to read the reliability claims you will meet elsewhere. Three criteria are worth taking to your chart today: One closing view, offered as opinion rather than fact. The patterns are the easy part of this. Anyone can learn to spot a head and shoulders in an afternoon, and the fact that fifteen of them fit into one article should tell you how little of the work sits in recognition. What separates traders who use patterns well is that they decided in advance what would count as confirmation and where the idea would be proven wrong, and then did not renegotiate either of those once money was on the line. The RADEX MARKETS editorial team consists of seasoned financial professionals and market observers. Dedicated to delivering objective market summaries, macroeconomic insights, and educational content, the team strives to keep traders well-informed in a fast-paced financial environment. Reviewed by RADEX MARKETS Risk Warning Trading derivatives and leveraged products carries a high level of risk, including the risk of losing substantially more than your initial investment. Deeper into chart patterns: Related concepts:

After 43 long days, the US government finally reopened late on Wednesday evening. Despite the resolution, markets are more uneasy than ever, with no clear path forward. The lack of economic data over the past six weeks may have a more permanent effect than previously assumed. Vital surveys were simply not carried out at all, meaning that some data points, such as the October unemployment rate, will now never see the light of day. As usual, the lack of information is affecting the Fed, making some members unwilling to do anything other than hold steady until more figures become available. Comments from a number of board members have slashed the odds of a December rate cut to 50%; this time last month they were hovering around 90%. The windfall may not come and investors are getting angsty. Financial markets across the board were gripped by a sense of unease yesterday. It was a bad day for US stock markets: the Dow Jones and S&P 500 both fell 1.7%, while the Nasdaq Composite closed the day 2.3% in the red. The selloff was particularly bad for big tech companies, including Nvidia (NVDA), which lost 3.6% yesterday, but also Tesla (TSLA), which shed 6.6% by the closing bell. Cryptocurrencies also continued their descent, with Bitcoin dipping below $100k this morning and showing very little motivation to make a comeback. Retail demand for cryptocurrencies has remained unimpressive over the last few weeks, while institutional players have made a coordinated retreat over the same time frame. ETFs and corporate treasuries have shed some weight recently, while Michael Saylor’s Strategy (MSTR) is down over 50% since its summer highs. The story in precious metals is somewhat different. While gold and silver failed to escape yesterday’s selloff, the two metals are already back on the front foot as of this morning. Silver showed a lot of strength earlier today, pushing back above $53 an ounce, while gold managed to edge over $4,200. With or without additional rate cuts, the case for precious metals remains strong due to the underlying fiscal weakness present in many major economies. From North America to Europe to Japan, countries around the globe are facing mounting debt problems that have investors looking for safety. #Metal #Tesla