This week the Forex markets had a very predictable chart pattern that played out during the presidential election results. This same pattern played out during the Brexit vote back in June. Is this a fluke? I think not; this happens all the time during major
news events especially when there is a chance for an upset. The greater the upset, the greater the possible move in the markets. I personally have screen shots saved, not only of the chart pattern but also of the betting odds and polls that tracked these events. I want to make sure I capture what my screen looked like and the emotions of people and traders that effect the outcome of the major news release.
Trading Chart Pattern More, Than The Eye Can See
Most traders including myself always talk about could haves or should haves, and often speak of chart patterns that they saw in the market. These same traders fail to understand the emotion behind these chart patterns. Everything traders see on their price charts are caused by other traders emotions. Some have a hard time dealing with the fear emotion. Fear could be a fear of missing a trade or a fear of losing on one. Greed, on the other hand, is attempting to make more money than the market typically hands out on typical moves. To become a better trader one must master both of these emotions and learn how to spot these in the marketplace. Even if you do not plan to place trades around news events this technique can help you lock in profits and manage risk a bit better.
Predictable Chart Patterns Video
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