Different Pattern Types (Continued)

Chart Patterns:

With completed chart patterns (above) the idea is that price will reach the target level, indicated in bright red or green, after the pattern was identified. This happens about 70% of the time.

Emerging chart pattens (below) are patterns where price is still trading between support and resistance. Swing traders expect price to move towards support or resistance. When price moves past the expected level of support or resistance we say a “breakout” has occurred. Then it forms a completed pattern with a new price target.



Click here for a short introductory video on chart patterns.

Fibonacci Patterns:


Completed Fibonacci (Fib) patterns form when the price graph moves up and down in a particular price ratios. These Fib ratios are abundant in nature and are believed to have some “natural order” effect in the markets. The expectation is that after a Fib pattern completes, the price will find support or resistance again close to another Fib ratio.

There are also emerging Fibonacci patterns, which are slightly more convoluted. They say that IF the price reaches and turns around at the price level of the pink dot, then the pattern would be complete and the expected levels of support or resistance would apply.


Click here for a short introductory video on Fibonacci patterns.

Key Levels:


The two types of Key Levels are breakouts and approaches. Key Levels are nothing more than horizontal support and resistance levels. As with all support and resistance, the expectation is that price will either bounce off the level and retrace, or it will break through the level and be carried away from it by price momentum.

We offer target levels with breakout patterns indicating where price is expected to go (this happens 72% of the time) and with approaches the price is expected to reach the key level (this happens 78% of the time).



Click here for a short introductory video on Key Levels.
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