A gravestone doji can be a sign that an uptrend has moved too high, too quickly. This can mean some retracement is necessary before new highs can be made.
A morning star strategy is used for trading on short swings in a downward trending market. The pattern usually shows up where the market has reached an oversold level.
A harami pattern marks a sudden break in a trend where there’s indecision. At this point the buyers and sellers are closely matched leading the price to hover.
When trading an uptrend we always want to be alert to changes in bullish sentiment even on a small scale. The dark cloud is one such pattern that we can look for as an early sign of a bearish reversal.
Heikin Ashi is most useful for visually identifying places where the market is trending. This makes them suited to scalpers, swing traders, and day traders.
The following cheat sheet will help you to identify the most common technical patterns that appear in forex charts. Click each heading for more information.
The descending broadening wedge is easily spotted on a chart. It looks like a megaphone with a downwards tilt. It’s equally likely to appear in downtrends as well as uptrends.