Candlestick Chart Patterns - How to Spot a Forex Winner

To the beginner a candlestick chart can lookSymmetrical triangles are formed when the highs and
confusing but every trader knows that they are anthe lows are descending and ascending at roughly the
invaluable tool. Candlestick charts are there forsame rate. At some point the two lines are going to
convenience. They are a great way of visualizingmeet. It is this point where there is going to be a
what is going on in a market without actually havingbreakout. Eventually there has to be a breakout
to look at any figures.because the buyers and sellers can't possibly keep
There is a right way and a wrong way to usefighting equally. Eventually one side of the trade will
candlestick charts. The wrong way is to sit looking athave to give way and the market will go one way or
the charts and just try and guess what is going tothe other.
happen next. The right way is to use the charts andTops and bottoms
try and spot the right patterns.Double tops and double bottoms occur all the time on
Look for the trianglesa chart and they can be quite difficult to spot. Double
Asymmetrical Triangles are created on the chart bytops occur after an extended up trend and double
either having a steady upper level and a rising,bottoms occur after an extended down trend.
highest lows level or having a steady highest lowsDouble tops consist of two peaks that can not break
level and a descending lower highs level. These twoa certain level and double bottoms consist of two
are known as the ascending and descending trianglesvalleys, each cant break a certain level.
respectively and are used all the time by traders.Both will result in a trend reversal so you should look
Where the two lines of the triangle meet is wherefor these and try and monetize as much as possible
there is usually a breakout in the market.by getting in early.