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03/11/2024
Spike as Support and Resistance (S&R) Pattern
The "Spike as Support and Resistance (S&R) Pattern" in forex is a technical pattern where a sudden, sharp price spike serves as a temporary or long-term support or resistance level on a price chart. This pattern typically forms after a significant price movement, such as a single large candlestick (spike) caused by market news, economic data, or high-volume orders. Traders interpret these spike levels as zones where price has shown a strong reaction and may react similarly in the future.
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03/11/2024
Spike Pattern
The "Spike Pattern" in forex is a technical pattern that indicates a sudden, sharp price movement, typically seen in volatile markets. A spike can occur in either direction, up or down, and often represents an extreme sentiment shift driven by major economic news, unexpected events, or significant orders from institutional traders. Spikes can signal the potential for a reversal or continuation depending on the context, and they provide insights into short-term price exhaustion or momentum.
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03/11/2024
Fair Value Gap Pattern
The "Fair Value Gap" (FVG) pattern in forex is a concept derived from institutional trading theory, often associated with the work of traders who analyze inefficiencies in the price movement on a chart. It describes a gap that occurs when there is an imbalance between buyers and sellers, leading to a swift movement in price that leaves an area on the chart where few or no trades have occurred. This gap often indicates that the price did not fully "trade" at fair value during the initial move, leaving room for potential retracement to that area as the market seeks to fill the imbalance and achieve equilibrium.
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03/11/2024
Inside Bar Pattern
The "Inside Bar pattern" in forex is a price action trading setup that signifies market consolidation and often indicates a period of indecision in the market. This pattern is characterized by a smaller candlestick (or bar) that is completely contained within the range (high and low) of the previous, larger candlestick. The inside bar pattern typically signals a potential breakout, allowing traders to anticipate when the market may resume its current trend or start a new one.
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03/11/2024
Hikkake Pattern
The "Hikkake pattern" in forex is a price action trading strategy used to identify potential reversals in the market. The term "Hikkake" is derived from a Japanese word that means "to hook" or "to catch," reflecting the pattern's nature of trapping traders into false moves before the market reverses direction. This pattern is often associated with false breakouts and is utilized by traders to capitalize on sudden price movements.
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03/11/2024
Outside Bar / Engulfing Bar
In forex trading, an "Outside Bar" (also known as an "Engulfing Bar") is a candlestick pattern that signals potential reversals in the market. This pattern consists of two consecutive candles where the second candle completely engulfs the body of the previous candle, indicating a change in market sentiment. Here are the key features and implications of the Outside Bar pattern:
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03/11/2024
Larry Williams' "Oops Pattern"
Larry Williams' "Oops Pattern" is a trading strategy developed by trader and author Larry Williams that identifies potential reversals in the market, particularly after a strong price movement. This pattern is primarily used in forex and other financial markets and is based on specific price action and candlestick formations. Here are the key features and implications of the Oops Pattern:
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03/11/2024
Shark Pattern
The "Shark Pattern" is a specific type of harmonic pattern used in forex and other financial markets for identifying potential reversal points in price movements. It is part of a broader set of trading strategies that utilize the Fibonacci sequence to analyze market trends. Here are the key features and implications of the Shark Pattern:
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03/11/2024
NR4 Pattern
The "NR4 Pattern" (Narrow Range 4) in forex is a technical trading strategy used to identify potential breakout points by looking at periods of reduced price volatility. This pattern, popularized by trader Toby Crabel, signifies a consolidation phase that can lead to a breakout. Here’s how the NR4 Pattern works in the context of forex trading:
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03/11/2024
One-Bar Reversal Pattern
The "One-Bar Reversal" pattern in forex is a candlestick pattern that suggests a potential reversal in the market's direction within a single bar (or candlestick). This pattern occurs when a bar has a higher high and a lower low than the previous bar, typically signaling a sudden shift in momentum and hinting at a potential reversal. The one-bar reversal pattern can represent either a bullish or bearish reversal, depending on where it appears in the trend.
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03/11/2024
Dead Cat Bounce Pattern
The "Dead Cat Bounce" pattern in forex refers to a temporary recovery or short-lived reversal in the price of a currency pair or other asset, which occurs after a significant decline. This pattern is named after the phrase, "Even a dead cat will bounce if it falls from a great height," and implies that a small rally might happen in a downtrend, but it doesn’t indicate a long-term reversal.
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03/11/2024
Opening Range Breakout (ORB) Pattern
The "Opening Range Breakout" (ORB) pattern in forex is a popular intraday trading strategy that focuses on price movements immediately following the market open. It is based on the idea that the initial price range established shortly after the open can indicate the potential direction and volatility of the trading day. Traders use the ORB pattern to capture potential breakouts and trends that may follow the opening period.
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03/11/2024
NR7 Pattern Pattern
The "NR7 Pattern" (Narrow Range 7) in forex is a technical trading pattern that identifies a period of consolidation and reduced volatility over a seven-candle sequence, which may signal an impending breakout. The pattern was popularized by trader Toby Crabel and is part of a broader strategy to capitalize on volatility contractions that often precede strong price movements.
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03/11/2024
Naked Bar Upward Reversal Pattern
The "Naked Bar Upward Reversal Pattern" in forex is a price action pattern indicating a potential upward reversal without relying on additional indicators or complex analysis tools—hence the term "naked." This pattern is based solely on candlestick formations and is often used by traders seeking clear signals of market reversals without added technical overlays.
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03/11/2024
Hook Pattern
The "Hook Pattern" in forex trading is a technical chart pattern that signals a possible trend continuation or reversal. It usually forms after a directional move and shows a temporary pullback or retracement that creates a "hook" shape on the chart, before potentially continuing in the initial direction. The hook pattern is generally interpreted as a sign of strength or weakness in the trend and is popular in both trend-following and counter-trend trading strategies.
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03/11/2024
Horn Formation Pattern
The "Horn Formation" pattern in forex is a reversal pattern that appears at the end of a trend, signaling a potential shift in market direction. It consists of three main candles and resembles a structure with two horns on either side of a central candle, hence the name "horn formation." This pattern is particularly used to spot reversals in a strong trend, either upward or downward.
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