| Who is the most beautiful woman in the world? | | | | stages. That can be somewhat corrected by waiting |
| Difficult to pin an exact answer to. It depends on | | | | for the market to begin to move in the original |
| who is looking. The same holds true of forex chart | | | | direction before entering the trade. |
| patterns. | | | | Yes, I believe that the simple pullback (retracement, |
| It really depends on the person trading it. | | | | whatever you want to call it) is the best chart |
| That said, there are some chart patterns that are | | | | pattern. It relates well to the psychology of the |
| better than others are. One has been around since | | | | market. Everyone is buying (or selling) in a mass |
| the beginning of time of traded markets. It has gone | | | | crowd. No thought is given to the fact that buyers |
| by many names. Without a doubt new names will be | | | | are limited. The market will reverse simply because |
| invented for it in the future. | | | | you will run out of traders will to trade that direction. |
| That chart pattern is the lowly pullback. It's also called | | | | You'll use them up eventually. |
| a flag, or pennant. Fibonacci trading totally revolves | | | | The market turns around. Now the smart traders |
| around trading the pullback. You can trade also with | | | | begin to plot their entry. Others who missed the |
| moving averages, or moving average envelopes. You | | | | move begin to jump in at this "cheaper" price. Again |
| can also you Bollinger bands to help identify pullbacks. | | | | the price resumes its original move. |
| Of course, this pattern is not foolproof. After all a | | | | It happens again and again and again. And it will |
| full-fledged reversal looks like a pullback in the early | | | | continue to do so until markets are no longer traded. |