Author: Editorial Team

ForexPromos Editorial Team is comprised of a selection of hand picked editors that bring you the latest breaking news from the financial markets. We also provide forex educative articles as well as comprehensive fx broker reviews.
Trading with Ascending and Descending triangles

Trading with Ascending and Descending triangles

Trading Strategies
In our previous articles on chart patterns, we covered the Head and Shoulders pattern, the flags pattern (bullish and bearish flags). In this article, we explain the ascending and descending triangle chart patterns. These patterns work on the basis of breakouts. A break out is defined as price trading in a range and consolidating. When enough momentum is built, price tends to break out or break down with force. Break out trading is one of the many ways to trade although traders tend to get caught more than often. One of the most typical price action with trading break outs is that price often makes false moves before carrying on in the intended direction. When such a move occurs, most of the traders who went in early often get stopped out. While one might argue to wait for a break out t...
A simple Fibonacci Swing trading strategy

A simple Fibonacci Swing trading strategy

Trading Strategies
Some of the most profitable and consistent trading strategies are often those that are simple. The simplicity of the trading system is what puts off many traders. But of course this is a general tendency where traders think that the more complicated a trading system is, the better it performs. The Fibonacci swing trading strategy is perhaps the most simplest of trading strategies that uses the most minimal of indicators (2 Moving averages) and the Fibonacci retracement tool. The strategy works best on the 4-hour timeframe and is ideal for swing trading with an average trading hold period lasting for atleast a week. Fibonacci Swing Trading - Chart Set Up For the chart set up, we make use of the H4 time frame with two moving averages plotted. 100 MA (which replicates a 20 period weekly...
Hikkake Pattern – Bollinger Band trading strategy

Hikkake Pattern – Bollinger Band trading strategy

Trading Strategies
Price action trading can be a rewarding trading strategy for traders who truly understand how the markets work. While there are many stand alone price action trading patterns and strategies such as shorting a bearish engulfing pattern or going long on a Piercing Line pattern, the problem is that these patterns which are based off just two price bars do not have a good success rate. Of course, any trader worth his salt would know not to trade purely based on candlestick patterns. With the Hikkake pattern, which comprises of 3 bars, the odds of having a successful trades are much higher, especially when combined with Bollinger Bands. The bands, as we know are used to measure volatility and is based on the concept of mean reversion. Combining price action with a pattern such as Hikkake ...
Trading the Hikkake Pattern

Trading the Hikkake Pattern

Trading Strategies
The Hikkake pattern is a Japanese terminology and refers to 'trick'. It was discovered by Daniel Chesler, CMT and has become a popular trading pattern for traders. The hikkake pattern can be identified most easily on a bar chart as well as on Point and Figure charts. It is purely based on price action and is used as a reversal to the trend as well as a continuation pattern, depending on where it appears on a chart. One of the simplicity of trading the Hikkake pattern is that it takes three price bars to identify the pattern and thus makes for a robust trading strategy. However, trading purely based off the Hikkake pattern isn't profitable in itself. But when combined with existing methods, it can prove to be very valuable. Understanding the Hikkake Pattern The Hikkake pattern is made up ...
Trading the Flag patterns the right way

Trading the Flag patterns the right way

Trading Strategies
In the realm of the many different types of chart patterns, the flag patterns presumably fall into the category of one of the most safest chart patterns to trade. The reasoning behind this statement comes from the very definition of flags (and pennants). Definition of the Flag Pattern A flag (Bullish or Bearish) is indicative of a continuation of the prevailing (underlying or the main) trend. When a flag pattern is identified on the chart, it usually points to a pause in a rally creating a tight range type of price action. This pause usually results in a break out as price tends to resume its previous trend. Unlike other chart patterns such as the famous Head & Shoulders, which generally points to a reversal of trend (or in some cases as a continuation pattern), it is relatively d...