A\ THE FOREX TRADING GUIDE TECHNICAL ANALYSIS SERIES IN THIS BOOK SYMMERTRICAL TRIANGLE ASCENDING TRIANGLE DESCENDING TRIANGLE HEAD AND SHOULDERS + INVERSE CUP AND HANDLE + INVERSE] [FALLING WEDGE / RISING WEDGE RECTANGLE FLAG a SL DOUBLE TOP / DOUBLE BOTTOM! [TRIPLE TOP / TRIPLE BOTTOMine THE FOREX TRADING GUIDE © TECHNICAL ANALYSIS — CHART PATTERNS Copyright © 2016 TradingSpine All rights reserved by TradingSpine. No parts of this work may be reproduced in any form or by any means - graphic, electronic, or mechanical, including photocopying, recording, taping, or information storage and retrieval systems - without the written permission of the author. The information provided within this eBook is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the information, products, services, or related graphics contained in this eBook for any Purpose. Any use of this information is at your own risk.ine THE FOREX TRADING GUIDE © TECHNICAL ANALYSIS — CHART PATTERNS TABLE OF CONTENTS 1. WHAT THIS BOOK PROVIDES TO YOU. 2. SYMMETRICAL TRIANGLE. 2.1 bullish symmetrical triangle illustration and structure 2.2 notes... 2.3 trading the patter 2.4 pattern's reward:risk. 2.5 bullish symmetrical triangle real example. 2.6 bearish symmetrical triangle illustration and structure. 2.7 bearish symmetrical triangle real example. 3, ASCENDING TRIANGLE. 3.1 illustration and structure (bullish] 3.2 notes... 3.3 trading the pattern... 3.4 pattern's reward:ris 3.5 real example (bull 4, DESCENDING TRIANGLE. 4.1 illustration and structure (bearish). 4.2 notes. 4.3 trading the pattern. 4.4 pattern's reward:risk 45 real example (bearish)... 5. HEAD AND SHOULDERS... 5.1 illustration and structure... 5.2 notes... 5.3 trading the pattern... 5.4 pattern's reward:risk. 5.5 head and shoulders real example. 5.6 inverse head and shoulders illustration and structure. 5.7 inverse head and shoulders real example. ee | aDine THE FOREX TRADING GUIDE © TECHNICAL ANALYSIS — CHART PATTERNS 6. CUP AND HANDLE. .ssssesen steineentninsnsne 6.1 cup and handle illustration and structure...» 6.2 notes. 6.3 trading the patteri 6.4 pattern's reward:risk.... 6.5 cup and handle real example... . 6.6 inverse cup and handle illustration and structure... 6.7 inverse cup and handle real example 7. WEDGE 7.1 falling wedge illustration and structUre....neesenmne wsiniinicaecnencncciais DD 7.2 notes 7.3 trading the pattern. 7.4 pattern's reward:risk... 7.5 falling wedge real example... 7.6 rising wedge illustration and structure,..smmenninnnensnnsenn 7.7 rising wedge real example.... 8. RECTANGLE... 8.1 bullish rectangle illustration and structure. 8.2 notes... 8.3 trading the pattern 8.4 pattern's reward:rist 8.5 bullish rectangle real exampl 8.6 bearish rectangle illustration and structure. 8.7 bearish rectangle real example....o:es- 9. FLAG. 9.1 bullish flag illustration and structure. 37 9.2 notes. 9.3 trading the patter 9.4 pattern's reward:risk. 95 bullish flag real example. 9.6 bearish flag illustration and structure. 9,7 bearish flag real example... ee | aDine THE FOREX TRADING GUIDE © TECHNICAL ANALYSIS — CHART PATTERNS 10. PENNANT.. 10.1 bullish pennant illustration and structure, 10.2 notes. 10.3 trading the pattern.. 10.4 pattern's reward:risk...... 10.5 bullish pennant real example...... 10.6 bearish pennant illustration and structure. 10.7 bearish pennant real example. 11. DOUBLE TOP / DOUBLE BOTTOM. 11.1 double top illustration and structure (bearish) : eT 11.2 notes... 11.3 trading the pattern 11.4 pattern's reward:risk.. 1.5 double top real example (bearish)... 11.6 double bottom illustration and structure (bearish)... 11.7 double bottom real example (bearish). 12, TRIPLE TOP / TRIPLE BOTTOM... 12.1 triple top illustration and structure (bullish).. 12.2 notes. 12.3 trading the pattern, 12.4 pattern's reward:risk.. 12.5 triple top real example (bullish). 12.6 triple bottom illustration and structure (bullish 12.7 triple bottom real example (bullish) .1sssnssnsennneee 13, DIFFERENTIATING CHART PATTERNS. 13.1 table of patterns’ (direction, type, occurrence, term). 57 13.2 table of patterns' (target, failure) measurements. 13.3 differentiating patterns. 14, USING THIS BOOK TO YOUR ADVANTAG! 14.1 how to proceed from here. 14.2 why and when do we use (7%, 14%, 21%) for stop loss safety.. 14.3 a few points to consider. ee | apTradingSpine THE FOREX TRADING GUIDE © TECHNICAL ANALYSIS — CHART PATTERNS Unlike most sources of information available for Forex chart patterns, this book won't stop at the technical analysis characteristics of the different patterns. The chart patterns are a part of a whole, and our goal here is to show and explain the whole picture so you can trade profitably using the knowledge gathered from this book, To reach that goal we will go through three main topics throughout the book + The first topics the technical aspect of the chart patterns covered in the book, this includes detailed illustration for the patterns' price action structure as well as target (take profit) and failure (stop loss) measurements, before finalizing each chart pattern with a full real trading setup as a usage example for the pattern in real trading. + The second topic will be tabular data for all the chart patterns, which can be helpful when choosing patterns that suits your trading style the most, followed by an explanation of how to differentiate similar looking patterns using price action highs and lows. + The third and most important topic is how to use that technical knowledge gathered for the different chart patterns in a real Forex money management plan for a trading cycle, to achieve that we will use our own strategy to show the the whole thought process before starting a trading cycle. Before we dive right into the interesting content, remember that Forex trading -and trading in general- is not only about the analysis of charts or financial news, it heavily relies on both money management and trading management for consistency reasons, therefore trading a chart pattern must be a part of bigger plan.THE FOREX TRADING GUIDE TECHNICAL ANALYSIS — CHART PATTERNS MMETRICAL TRIANGLE 2.1 BULLISH SYMMETRICAL TRIANGLE ILLUSTRATION AND STRUCTURE COST ET Direction: Continuation ae ee Type: Bullish Occurrence: High ‘Common term: Medium - Long Ree ued) PRICE ACTION: + In.an uptrend, price action finds first resistance (1), which will be the highest high in the pattern, where it reverses direction and goes downwards till finding first support (2), which will be the lowest low in the pattern. * Price action reverse direction from support (2) going upwards, tll finding the second resistance (3), which must to be lower than the first resistance (1). * Price action reverse direction from resistance (3) going downwards, till finding the second support (4), which must to be higher than the first support (2). * The pattern is completed when price action reverse direction from (4) and goes upwards till it breaks the triangle's upper border at point (5)ine THE FOREX TRADING GUIDE © TECHNICAL ANALYSIS — CHART PATTERNS 2.2 NOTES * Before the breakout, 4 touches to the triangle's borders are the minimum for a valid pattern, more touches are acceptable. * Although named symmetrical, the upper and lower borders don't have to be actually symmetrical, as long as lower highs (1 - 3 - ..) and higher lows (2-4 -...) are being formed, the pattern is considered valid. + The breakout of the pattern is expected at around (half / two third) the triangle's formation, measured from first touch (1) to the intersection point of upper and lower borders. * The more common direction for the pattern is continuation, but that doesn’t rule out the existence of reversal symmetrical triangles. * Volume usually decreases as the pattern is being formed, and increases when breaking or retesting the triangle's border (5). + This pattern is commonly found on medium and long-term time-frames 2.3 TRADING THE PATTERN * Trade entry: after breaking the triangle's border at point (5), either with an entry after confirming the breakout, or after a -possible- retest to the breakout rate. * Take profit: identified by measuring the vertical distance from the first touch (1) to the second touch (2), that measurement is then applied from the breakout point (5). + Stop loss: can either be the breakout rate (5), or the last touch to the triangle's border (4) before the breakout. 2.4 PATTERN'S REWARD:RISK + When using the last touch before the breakout as stop loss, the pattern's R:R improves when that touch is near the end of the triangle. * When using the breakout rate as stop loss, R:R will depend on the (entry rate - break rate) distance, compared to the target measurement (1 - 2), * Always remember that both stop loss levels explained above are absolute, the actual stop loss rate for your trade setup should be a bit beyond those levels to give the trade setup some room to breathe, and of-course calculations for position size and R:R should be done with respect to those rates. Feel free to leave us a comment and discuss this pattern directly on our website at: https://www.tradingspine.com/articles/chart-patterns/symmetrical-triangle.php ee | aD