Patterns in market
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Thread: Patterns in market

  1. #1

    Patterns in market

    As we know, market is two-sided auction and if you want to buy, you need somebody to sell. Or if want to sell EURUSD, you need somebody to buy. Forex has much liquidity and you have no problems doing that. Trades are made every second. Somebody wins, somebody loses. It’s continuous process.

    Now, let’s imagine that there is one group of traders, employing some statistical pattern, that allows to have edge on the market. They earn money while other group agrees with that. Then, that pattern becomes more recognized by other traders and first group (that benefits from this pattern) becomes wider. Also they have more capital over time. Some people from that group think that they have a «Holy grail» and borrow money to increase leverage. They reinvest all profit and try to «make a fortune».

    Over time, second group loses more money. Somebody has run out of money and got margin call, somebody has achieved loss limit. Second group becomes less in capital and in quantity. Capital migrates from pockets of second group to pockets of first group.

    Then, profitability of this pattern is screwed up as second group starts reevaluate their trading and adjust it to the market.

    This example is simplified for the sake of quick understanding. There are lots of groups of traders on the market with different strategies and targets. But one thing works always – the more one group loses money, the stronger the pain and their intention to change their trading before blowing up an account.

    Now let’s get back to patterns. They are different.

    Obvious patterns:
    We see it, but can’t benefit from it. For example, everybody knows that market operates from Monday to Friday but nobody can benefit from this knowledge. There are of course come marketplaces that aren’t closed on weekends, but volumes there are slim except some unexpected events, when we see gap on Monday.

    Hidden patterns:
    You can’t see it without any specific tools. You need to find it and once you’ve found it you can build trading system around it. Quick example: EURCHF was in flat couple of months ago, gravitating to 1.2000. You could purchase at this price with stop at 1.1500, expecting intervention of Swiss Central Bank.

    Temporary patterns:

    Those patterns appear from time to time. For example, if price of EURUSD grows rapidly throughout the day, odds are pretty high that you can capture small pullback (work counter-trend) or join a trend wins this pullback. There are lots of other temporary patterns. You will find them if you are willing to spend some time observing charts and journaling what you see.

    Seek, find, and earn!
    Last edited by Value trader; 08-15-2013 at 10:35 AM. Reason: ошибка закралась

  2. #2
    Registered user
    Join Date
    Aug 2013
    One of my favourite set-up head & shoulders is here again, this chart is very helpful for beginner hope u learn lot

  3. #3
    Registered user mohamed reda's Avatar
    Join Date
    Aug 2013
    trading with patterns will be good for any professional trader but i think it will not so easy way to make profits for any beginner trader so i think trading with pattern will be the best way to predict the price in any chart but in fact i prefer to trading with the trends .

  4. #4
    Business Harmonic Styles on Currency trading Marketplaces. Hello - and welcome to this many website which is a release on how to trade harmonic patterns in the forex markets.

  5. #5
    Join Date
    Aug 2013
    out of those 3 types of patterns, which pattern do you think is more rewarding?
    i believe the hidden patterns are very much rewarding because you catch them from its roots and make a lot of pips and risk : reward is always 1:2 or something like that.

  6. #6
    well, we can easily find the pattern in market by using the zig-zag indicator. It drew the pattern automatically. To help trader who have no experience in define the pattern. Zig zag indicator is the default indicator we can find in our metatrader

  7. #7
    True, in general, the forex market has a systematic pattern of movement and we can learn in depth about the various patterns that exist in the forex market. usual pattern of forex market can also be studied by the method of candlestick patterns, candlestick pattern which has a market movement patterns that will provide guidance in the future. It's just that we will experience confusion due to candlestick pattern also consists of a lot of market movement patterns that we can understand the pattern to memorize.

  8. #8
    Registered user
    Join Date
    Mar 2013
    Frankly speaking I love the threads that you write. you present the most valuable information in the most interesting way. Once we start reading your thread we cannot leave it without reading the whole. This is the reason why i love roboforex forum with such informative threads being started.

  9. #9
    In short term market is seen to follow chart patterns and that give traders a good opportunity to earn with ease. I am not sure what causes the patterns to be formed but once a pattern began may be more user trade to complete the pattern and so pattern get completed. Whatever the reason it for sure is highly beneficial for the traders.

  10. #10
    Trader Russel2012's Avatar
    Join Date
    Aug 2013
    yes pattern in market is really t very essential for every trader... Perfect planning can makes a perfect to be successful trader... If any trader can follow the market patter then he will get the better chance to make perfect trade... Even candle patter is the most essential theme to get the market sentiment.. So every trader should take proper knowledge about market movement...

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