Chart Patterns Trading Gold Patterns

Chart patterns are graphical representations of repeating price action formations which are commonly and often used in the analyzing the online Gold market.

Chart patterns is one of the studies used in technical analysis to help the traders learn how to recognize the repeating chart setups.

These chart patterns are crucial in Gold trading because when the market is not heading in a particular direction it's forming a pattern. It's important to know these formations so as to have an idea of what might be the next move in the Gold price movement.

When gold price movements are plotted on a chart there are several formations that occur naturally & repeat themselves over and over again. These formations and setups are used by a lot of trading analysis traders to predict the next likely market movement.

Traders often study these patterns and formations and setups to gauge supply and demand forces which form the basis for XAUUSD Gold price fluctuations/oscillations. These chart patterns are classified in to 3 various different categories:

1. Reversal patternsDouble topsDouble bottomsHead and shouldersReverse head & shoulders

2. Continuation chart patternsAscending triangle vs Descending triangle - Bull flag/pennant vs Bear flag/pennant

3. Bilateral patternsSymmetric triangle - ConsolidationRectangle - Range-Bound Market

Reversal patterns - these reversal chart patterns confirm the reversal of the market trend once the chart pattern is confirmed. These patterns are formed after extended price trend either upwards or downward and they signal that the market is ready to reverse the direction.

Continuation patterns - these continuation chart patterns are formations that setup the market for a continuation move in the direction of the prior trend. These continuation patterns are formed when the market is taking a pause before continuing in the same direction of the previous XAUUSD prices trend.

Consolidation patterns - these consolidation chart patterns form when the market is taking a pause prior to deciding next direction to move. When these chart patterns are formed, the market is trying to determine what direction to trade.

Technical Analysis of the Charts

There are 2 types of chart analysis in trading, these 2 might seem similar but aren't: the 2 are:

Japanese Candlesticks Patterns - Study of a single candlestick - Read Japanese Candlesticks Chart Patterns - Study of a series of candlesticks formations

(This tutorial is about the second option above - chart patterns)

The different lessons for these 2 types of chart analysis are:

Japanese Candlesticks Patterns

1. Marubozu & Doji Candlesticks Patterns
2. Spinning Top Candlesticks Patterns
3. Reversal Candlesticks Patterns
4. Inverted Hammer & Shooting Star Candlesticks Patterns
5. Piercing Line & Dark Cloud Candles Patterns
6. Morning Star & Evening Star Candlesticks Patterns

Chart Patterns Tutorials

1. Double Tops & Double Bottoms Chart Setups
2. Continuation Patterns
3. Consolidation Chart Patterns
4. Head Shoulder & Reverse/Inverse Head Shoulders Patterns

The exemplifications shown below also display the difference of the formations and setups of these 2 trading analysis methods.

Candlesticks - Study of a single candle

Candles

Patterns - Study of a series of candlesticks formation

Consolidation Chart Pattern Setup - Trading Gold Using Patterns

More Lessons and Tutorials & Topics:

• What's the Minimum Deposit Required to Open Cent XAU USD Account?
• How to Start XAU USD with Cent XAU USD Account
• How Do You Read Ehlers MESA Adaptive Moving Average MA Indicator Buy and Sell Forex Trading Signal?
• How Can I Calculate XAU USD Price Action?
• Counter XAU USD Trend Trade Strategies