Patterns are very widely used in trading. We will be discussing about various patterns used in trading in upcoming posts. In this post we will discuss why pattern is used in trading and which pattern you should use and which you should completely avoid.

How patterns work?

Patterns works because it shows the graphical representation of human psychology. For example, a round bottom pattern shows selling pressure is slowing down and buying pressure is increasing. We will be discussing how patterns works in special post for each pattern.

Most patterns are simple and easy to spot and use, if you have some practice. But if patterns are highly complected and and look like random drawings you should avoid it. Before using a pattern you should understand why the pattern should work else just relying on recent historical price action will not help.

Trading course series - #1 - Introduction

Trading course series - #2 - Risk management

Trading course series - #3 - Risk reward ratio