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.
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.
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.
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.
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.
The "Pipe Formation" pattern in forex is a reversal pattern that signals a potential change in the market trend after a strong uptrend or downtrend. This pattern, which consists of two significant candlesticks, can mark the beginning of a new trend direction, either upward or downward. The Pipe Formation pattern is often associated with turning points in the market and is used by traders to identify a potential reversal.
The "Island Reversal" pattern in forex is a chart formation that indicates a potential trend reversal, often seen as a bullish or bearish signal. It occurs when a price gap appears on both sides of a group of bars (candlesticks), which isolates or “strands” them, creating an “island” of prices. This pattern typically signals a strong change in market sentiment, as it represents a sudden price shift that can leave traders "stranded" in their previous positions.
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