Summary chart Patterns

Summary chart Patterns

As we have seen in this lesson from our forex course, graphics patterns can allow us to discover important changes in currency tagging before they occur. These are the formations that we have commented:

Symmetrical triangles

• The slope of the high peaks of prices and the slope of the low peaks converge to a point where they simulate a triangle.


• Pending orders can be placed (see Order types) above the low peaks and below the high peaks.

Ascending triangles

• It consists of ascending low peaks (higher lows) and a resistance line.


• They usually mean that the price will break the resistance line and go upward, but you should place orders on both sides in case the resistance is too strong.


• Place your orders above the resistance line and below the low peaks.

Descending triangles

• They consist of lower high peaks and a support line.


• They usually indicate that the price will break the support line and go downward, but you must place orders on both sides in case the support line is too strong.


• Place your orders above the high peaks and below the support line.

Double roof

• It happens after a long upward trend.


• They are formed with two peaks that cannot surpass a certain level. This level becomes a resistance line.


• You can open a sales position under the lowest point of the valley in the middle of the two peaks.

Double floor

• It happens after a long bearish trend.


• It is formed with two valleys that cannot break a certain level. That level becomes a support line.


• You can open a shopping position above the highest point of the peak in the middle of the two valleys.

Shoulder shoulder

• It happens after a long upward trend.


• It is formed with a beak (shoulder), followed by a higher peak (head), and then another low peak (shoulder). The support is formed by connecting the low points of the two valleys.


• You can open a sales position under the support.


• The price objective is calculated by measuring the distance between the highest peak of the head and the support. This is the approximate distance that will travel the price after breaking the stand.

Shoulder inverted shoulder

• It happens after a long bearish trend.


• It forms with a valley, a lower valley and then another higher valley than the latter. A resistance is formed by joining the highest points of the two peaks.


• You can open a purchase position above the resistance.


• The price objective is calculated by measuring the distance between the lowest point of the head and the resistance. This is the approximate distance that the price will travel after passing the resistance.

NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.