Pattern Recognition in Forex Trading?

[moonchild]

As the late Mark Douglas stated, Trading is a pattern recognition numbers game, so your work as a trader is to recognize patterns in the market and take advantage of them, as easy as that, but it's kind of a pain to implement, I mean it's very easy to open a chart and observe patterns after they've been formed.

You know what's hard? Recognizing them in real time, to be profitable long term you have to pay attention on the chart and sit there, put in the time and understand the relationship between time and price and from there you can begin to decode real time patterns and trade them effectively.

You can also pick up candlestick patterns and relate them to time and backtest them.

 

[FinTrader]

I would add that it is better to look for such models or patterns on higher timeframes. There they are worked out much better and the potential for price movement after the formation of such a model is much greater, which can significantly increase profits compared to trading on small time frames.