The market is working a range pattern the majority of the time. This is good news if you know what to look for.
Forex range patterns are full of information that will help you anticipate what comes next, so you can trade. Here are 3 examples that will make you chart smarter!
This first chart is an example of past performance predicting future price movement. During a range pattern, look back 15 bars from the middle of the range, and anticipate the market moving that far in the opposite direction. In this example, the solid arrow is predictive of the dashed arrow:
The next chart is one of my personal favorite Forex range patterns. When you see a well established range, watch for price to “overshoot” your expected high or low. When that happens, get ready! As soon as it goes past the expected high or low, place pending orders to sell from the top or buy from the bottom. If price comes back to the range, it will come back fast!
The last chart is an example of how the typical slow or no momentum you would expect is happening in the middle third, shaded in yellow. To and from the outer edges of the range, momentum shows up. Check it out this range pattern:
After having read this, I hope you will see and use Forex range patterns better than before! If you’d like to get up-to-the-minute trade alerts delivered to your phone as text messages and emails, subscribe to Trade Alerts+ and start trading with me!