Forex Chart Patterns

For my money the most profitable chart pattern and the easiest to trade is the 2b reversal chart pattern.

I have learned loads about trading forex in many live forex trading rooms, see links at the bottom of this post to see where.

However I have found for me the holy grail of trading that suits my stress levels and trading mentality perfectly. It isn’t scalping but it is short term trading (5 minute charts) where you never risk more than 1% of your capital per trade and you can often get two or three trades a day and grow your account 2 – 10% per day, 20 days a month.

Vantages entries combined with 2b reversals is becoming the safest and most consistently profitable way to trade forex I have found to date. It is also the simplest by far. No indis, no moving averages just pure candlestick analysis, trend analysis and price action at support and resistance.

Every evening now I just take a quick flick through a number of hourly charts looking for potential reversal setups, or areas that might act as support or resistance the following morning.

Then another quick flick through in the morning to see if we have an H1 reversal, if we do just drop down to the m15 and then m5 and wait for the lower high or higher low. Use the vantage entry and the low or high of the 2b reversal swing one for the target. SIMPLES.

This mornings EJ trade,

confirmed on the m15 chart below

and the H1 chart below

this is a perfect example of a counter trend trade confirmed in two higher timeframes (trading the retracement in the uptrend). We may get a decent long entry off this if we get a similar set of signals for an H1 reversal north. NFP so care needed.

Just under 2% profit with 1% risk. Cool.

I also learned how to trade forex and would wholeheartedly recommend the fantastic team at the www.fx500club.com They have a live forex chat room and share their charts so that you can watch them find potential trades in real time.

They also have a school for learning how to trade longer term charts at www.fxmonkeyschool.com.

The fx500club and fxmonkeyschool, forex trading school don’t just trade charts and indicators alone, they teach us to use correlation of the whole market before entering a trade. It truly is the best place to learn how to trade forex properly, safely and profitably. It’s all about the pips and about protecting your capital.

Click Here to get a FREE days entry into the fx500 club live trading room

Always Remember.

Keep your risk as a percentage of your capital low (1%), equals stress free trading.

Always work out potential losses before potential profits.

We are paid to take risks, if you aren’t in a trade you cannot win a trade!!

Buy off support and sell off resistance.

Bank partial profits early and move your stop loss to break even as soon as you can.

CLICK HERE To join my mailing list where I will be sharing my extensive result from trading with the fx500club and Zulutrade automated trading and other Expert Advisors automated trading systems

Click Here to get a FREE days entry into the fx500 club live trading room

2b reversal and 123 reversal trading instructions

Managed forex accounts with no fees  Zulutrade

I have now managed to find a few Zulutrader signal providers that are trading for me profitably, sign up for a demo account using my link above then contact me at info @ forex-experts.co.uk so that I can verify your email, I will then contact you with the traders details.

Strats free guide to Stress Free Trading the very best free place to learn to trade forex

Strat will teach you how to trade candlestick patterns at support and resistance, STEVE NISON also has some brilliant products that will help you become a protitable home day trader.

Click here to vist Steve Nisons website or

Click here to signup to his Free Newsletter Signup

Learn how to trade forex chart patterns in a live online  forex trading school, the fx500 club live trading academy.

Wow what a day today has turned out to be so far, quality trend trades within h4 swings all over the place, I wanted to take all of them but money management and common sense only allows me to risk 2% of my relatively small account per trade. I traded gbp/jpy and swissy (usd/chf) but there were valid trades on almost all the currency pairs I trade.  Most are retracements on the H4 charts against the daily trends, I am loving those H4 charts more and more these days.

I called these swing trades because they are high probability , mostly counter trend trades against the daily trends. I learned to trade forex like this in a live forex trading school.

gj trade below. Nearly 200 full fat pips on that one.

Update on gbp/jpy 300 pips from my entry and still falling. see below

Swissy trade below. banked 50 pips so far hoping to add on a pullback.

Today was one of those days where trades jumped out and screamed trade me please lol.

Watch that Aussie dollar though and don’t get caught into shorting it, buy on these pullbacks if PASR looks good.

Click here for a free weeks trial in Anders Larsens live Trading room

I also learned how to trade forex and would wholeheartedly recommend the fantastic team at the www.fx500club.com They have a live forex chat room and share their charts so that you can watch them find potential trades in real time.

They also have a school for learning how to trade longer term charts at www.fxmonkeyschool.com.

The fx500club and fxmonkeyschool, forex trading school don’t just trade charts and indicators alone, they teach us to use correlation of the whole market before entering a trade. It truly is the best place to learn how to trade forex properly, safely and profitably. It’s all about the pips and about protecting your capital.

Click Here to get a FREE days entry into the fx500 club live trading room

Always Remember.

Keep your risk as a percentage of your capital low (1%), equals stress free trading.

Always work out potential losses before potential profits.

We are paid to take risks, if you aren’t in a trade you cannot win a trade!!

Buy off support and sell off resistance.

Bank partial profits early and move your stop loss to break even as soon as you can.

CLICK HERE To join my mailing list where I will be sharing my extensive result from trading with the fx500club and Zulutrade automated trading and other Expert Advisors automated trading systems

Click Here to get a FREE days entry into the fx500 club live trading room

2b reversal and 123 reversal trading instructions

Managed forex accounts with no fees  Zulutrade

I have now managed to find a few Zulutrader signal providers that are trading for me profitably, sign up for a demo account using my link above then contact me at info @ forex-experts.co.uk so that I can verify your email, I will then contact you with the traders details.

Strats free guide to Stress Free Trading the very best free place to learn to trade forex

Strat will teach you how to trade candlestick patterns at support and resistance, STEVE NISON also has some brilliant products that will help you become a protitable home day trader.

Click here to vist Steve Nisons website or

Click here to signup to his Free Newsletter Signup

Connecting confirmed points of support and resistance allows us to draw trendlines which in turn allows us to create forex chart patterns that can be traded profitably.

Time and time again I see the importance of trendlines for use as support and resistance on the higher timeframes, especially now I am spending my days listening to a trader that discounts technical trading as total balderdash, don’t get me wrong fundamental trading is absolutely brilliant but combined with technical analysis it it utterly astonishing.

I just had to post this incident almost caught me out and that will have caught so many other traders out. The h4 buob ( bullish outside bar ) marked by the white question mark is the point I considered going long.

However the solid red sr line was old resistance that had the potential to become new support which led me to believe the price would return to that as a test, as mentioned in previous posts, the ascending trendline and the dotted red daily 20 moving average represented another support level that had the potential to be tested.

Profit taking was rife and buyers piled in after they had allowed sellers to test those levels; all fascinating stuff for me as always. The daily charts show that whole move as a hammer candle.

It just all goes to  show the power of candlestick charts, trendlines, and the daily charts.

Click here for a free weeks trial in Anders Larsens live Trading room

I also learned how to trade forex and would wholeheartedly recommend the fantastic team at the www.fx500club.com They have a live forex chat room and share their charts so that you can watch them find potential trades in real time.

They also have a school for learning how to trade longer term charts at www.fxmonkeyschool.com.

The fx500club and fxmonkeyschool, forex trading school don’t just trade charts and indicators alone, they teach us to use correlation of the whole market before entering a trade. It truly is the best place to learn how to trade forex properly, safely and profitably. It’s all about the pips and about protecting your capital.

Click Here to get a FREE days entry into the fx500 club live trading room

Always Remember.

Keep your risk as a percentage of your capital low (1%), equals stress free trading.

Always work out potential losses before potential profits.

We are paid to take risks, if you aren’t in a trade you cannot win a trade!!

Buy off support and sell off resistance.

Bank partial profits early and move your stop loss to break even as soon as you can.

CLICK HERE To join my mailing list where I will be sharing my extensive result from trading with the fx500club and Zulutrade automated trading and other Expert Advisors automated trading systems

Click Here to get a FREE days entry into the fx500 club live trading room

2b reversal and 123 reversal trading instructions

Managed forex accounts with no fees  Zulutrade

I have now managed to find a few Zulutrader signal providers that are trading for me profitably, sign up for a demo account using my link above then contact me at info @ forex-experts.co.uk so that I can verify your email, I will then contact you with the traders details.

Strats free guide to Stress Free Trading the very best free place to learn to trade forex

Strat will teach you how to trade candlestick patterns at support and resistance, STEVE NISON also has some brilliant products that will help you become a protitable home day trader.

Click here to vist Steve Nisons website or

Click here to signup to his Free Newsletter Signup

Due to the fractal nature of the forex chart patterns and candles you will notice that a single candle like an inside bar on a daily chart is in fact a coil or triangle chart pattern on the h4 or h1 chart.

This oil trade was worth 280 pips profit and it was a very simple trade taken using the break of a hammer candle.

All I had to do was draw a resistance line at the top of the daily hammer and a support line at the bottom of the hammer then trade the price break of either level.

Hammer candles on a daily chart are very strong trading signals, you can place orders, place your take profits and stop losses and close your trading platform for the rest of the day. 

Trade long to the previous high or short to the previous low. It really is that simple.

I personally learned how to trade across all time frames with the help of the fantastic team at the www.fx500club.com They have a live forex chat room and share their charts so that you can watch them find potential trades in real time.

They also have a school for learning how to trade longer term charts at www.fxmonkeyschool.com.

The fx500club and fxmonkeyschool, forex trading school don’t just trade charts and indicators alone, they teach us to use correlation of the whole market before entering a trade. It truly is the best place to learn how to trade forex properly, safely and profitably. It’s all about the pips and about protecting your capital.

Click Here to get a FREE days entry into the fx500 club live trading room

Always Remember.

Keep your risk as a percentage of your capital low (1%), equals stress free trading.

Always work out potential losses before potential profits.

We are paid to take risks, if you aren’t in a trade you cannot win a trade!!

Buy off support and sell off resistance.

Bank partial profits early and move your stop loss to break even as soon as you can.

CLICK HERE To join my mailing list where I will be sharing my extensive result from trading with the fx500club and Zulutrade automated trading and other Expert Advisors automated trading systems

Click Here to get a FREE days entry into the fx500 club live trading room

2b reversal and 123 reversal trading instructions

Managed forex accounts with no fees  Zulutrade

For 700 pips in a few days from just one trade.

 I apologise for not having posted anything recently, this is because I have been learning to trade a much more profitable method, taking far less of my time and producing much better profits.

 I now trade using the daily and weekly charts for major price movements. This is such a relaxed way to trade, you already have all the old major levels of support and resistance drawn on your charts, a few hours work a week amending daily charts and the same at the weekend studying the weekly charts is all the work you need to do.

The added bonus for me is that I don’t get anxious about missing trades like I used to on the lower timeframes. In addition I am often taking cheeky trades using the lower timeframes and using the directional bias / knowledge gleaned from daily tf analysis, win win.

Here is a very basic example of how a chart may look, I didn’t take this eur/cad long trade but my notes were made and left on my chart on the 18th of october. This note for example “18th 1.5449 long to 1.6000″ means the price was at 1.5449 at the close of that weekly bar and I assessed it would go to next resistance / significant number 1.6000 at least.

The long tailed weekly candle resembles a hammer with the long tail signaling that sellers moved in but buyers entered the market to push the close of the bar back up to old support of 15360. At this point I would move to the daily chart to look for candlestick price action to indicate a long trade.

To confirm a possible long trade I needed a close above the high of the red candle marked with the red x, this makes that a confirmed low at support and validates the ascending trendline. Notice also that the huge green candle of the 15th is a buob and bueb, bullish outside bar and bullish engulfing bar. This indicated that buyers had moved in in strength at old confirmed support. As often happens with these larger daily candles you get a 50% ish retrace, patience and discipline would get you in with a safe and profitable trade at 1.5360 stop below 1.5200 target 700 pips away at old major res 1.6100.

Notice also that after that buob/bueb of the 15th we had two indescision bars, the green doji 16th and the red inside bar of the 17th a close below would have invalidated the long, a close above would be a signal that buyers had won the battle and the price would continue up.

The hourly chart below clearly shows how 1.5360 was a significant level of old support August 24th , became new resistance and then support again.

There is no easy way to learn to trade forex, no substitute for 1000′s of hours of studying price action at old levels of support and resistance. The only holy grail of trading is your eyes and Price Action at Support and Resistance. Learn it and prosper. Good Luck.

One last note, have a look at how clearly resistance became support at 1.5360 on the four hour timeframe. Notice also how the salmon 20 ema crossing up through the pale blue 50 sma helped confirm the safe long entry. This happens alot, they are a very important moving average crossover to observe. See the earlier crossovers at point 1 and 2, remember these red supp/res levels are on the charts well before the price gets there, all you need to do is watch and learn how to interpret the price action at these levels to trade them profitably.

Hindsight is a brilliant thing I know but with practice and study confidence grows. It may take you a year or five years to crack it. Winners never quit. The charts don’t lie, these patterns have been occuring and working like clockwork for hundreds of years. That’s more than enough data to give me the confidence to realise I was on the right track.

I am not trying to teach you how to trade the daily timeframe rather I am trying to alert you to what I believe to be the best  and least stressful way to trade.

You can learn how to trade classic support and resistance with price action at support and resistance FOR FREE by searching for all the forex forums online.

I personally learned how to trade across all time frames with the help of the fantastic team at the www.fx500club.com They have a live forex chat room and share their charts so that you can watch them find potential trades in real time.

They also have a school for learning how to trade longer term charts at www.fxmonkeyschool.com.

The fx500club and fxmonkeyschool, forex trading school don’t just trade charts and indicators alone, they teach us to use correlation of the whole market before entering a trade. It truly is the best place to learn how to trade forex properly, safely and profitably. It’s all about the pips and about protecting your capital.

Click Here to get a FREE days entry into the fx500 club live trading room

Always Remember.

Keep your risk as a percentage of your capital low (1%), equals stress free trading.

Always work out potential losses before potential profits.

We are paid to take risks, if you aren’t in a trade you cannot win a trade!!

Buy off support and sell off resistance.

Bank partial profits early and move your stop loss to break even as soon as you can.

CLICK HERE To join my mailing list where I will be sharing my extensive result from trading with the fx500club and Zulutrade automated trading and other Expert Advisors automated trading systems

Click Here to get a FREE days entry into the fx500 club live trading room

2b reversal and 123 reversal trading instructions

Managed forex accounts with no fees  Zulutrade

Today has been yet another amazing day trading with the www.fx500club.com live online trading school. Having spent years learning to trade forex and now having joined the fx500club to sharpen my trading game I find the benefits of being in the fx500club are many fold. I used to just scalp forex for a few pips here and there, making a consistent living trading forex but I always wanted to understand how the financial markets really worked, hence joining the fabulous fx 500 team. The other good thing about all the forex research and learning that I have done over the years is that I can spot a good trader quite easily now and as such pick up a few good trades by knowing where to get the best information.

Well yesterday I posted a link to a thread in a forex forum by a guy called Strat, well I make a habit of checking his thread every day now because I am very keen to make “stress free” trades on the daily charts, like the method he is teaching on his thread. Check out the usd/jpy daily chart below.

If you look at yesterday post you will see Strat traded 10 or so pairs based on the daily candles on the 12th and 13th of july, he went long of usd/jpy after the hammer candle which is also a bullish outside bar, I have no idea where he entered but it could easily have been from 92.70 ish and as you can see it went to 94.80 over 200 pips. Strat is a god.

Well as you know we trade away from support and resistance so the obvious thing to do was to sell once the price had tested that descending trendline on that daily chart. Strat only trades the daily charts so my cheeky trade shown on the 15 minute chart below is taken using methode learned from the www.fx500club.com

Having done my daily check of all the daily charts as per Strats teachings on his thread I liked the look of this usd / jpy trade for a short, however my cci indicators were not looking correct for a short trade at this level, I could see it needed to test the level of 94.38 which was a significant level because on the hourly chart it had been a resistance level that had become a support level so it was very probable that it would be tested as resistance again. When a significant level is broken the price almost always goes back to test it. Study your charts and see how often it happens.

So in short I went long at 93.95 and grabbed 30 pips on the way up to 94.38 then I immediately went short at 94.30 I closed half at the previous low 93.40 and will ad back to this trade when it retraces hopefully to the 93.75 area. The ultimate target is 92.00 ish, the dollar is looking pretty weak, who knows. Below is the short trade chart.

The fx 500 club was good for me again as well today with James calling a long trade on euro japanese yen for 30 pips we had a small loser on cad but losers are very rare in the fx500club. After yesterdays 100 pip cable trade and this yen trade I can forgive them the odd loss lol. There are also plenty of other opportunities what with thier new email forex signals service and the regular videos that give numerous setups as well. It is pretty amazing that a months mebership to the fx500club is only

There were numerous profitable trade calls in the fx500club Live Trading Room today, swissy long, euro usd short, cable short and my trade the euro gbp long. Hundreds of pips available to those who took all of the potential fx500club trade setups.

I could have entered this trade using numerous chart patterns and setups that I have learned over time. This was a 2b reversal chart pattern, it was also a fast moving trend chart pattern on the 5 minute chart, that is when the price makes higher highs and higher lows but the lows don’t break back down through the high of the previous high, always a bearish sign. There was also the fanned moving average chart pattern.

I took this euro / pound trade because for me it looked to be the clearest setup and due to the lovely sunny weather we are having I like to be in and out of a trade with most of my profits banked and my stoploss moved to breakeven so that the trade is guaranteed profitable.

This was another trade based on the bunched up moving averages that I am so enjoying trading right now. As you can see from my chart the price crossed above the moving averages just after midnight during the Asian trading session. All the cci indicators had moved above zero and had turned green, all I was looking for then was the cci 21 to retrace below zero, turning red then wait for the moving averages along with the cci21 to start moving back up. My entry was at 0.8578 with my stop loss just 6 pips away at 0.8572, my first target was an old high 0.8627 I banked 75% there and moved my stoploss to my entry plus the spread (0.8580 = breakeven) so I cannot lose any of my profits on the final 25% of this trade now.

You can also see from my charts that my entry was a the level that was old resistance bocame new support, these levels are very powerful and very good places to enter trades giving you tight stop losses. You may also notice that we have a series of higher highs and higher lows creating a new trend on this 5 minute chart.

I have spent years analysing charts and many different methods of trading forex manually. It never ceases to amaze me how all the different manual trading methods and forex trading systems compliment each other. I cannot stress enough how important it is to thoroughly learn everything you can about technical analysis before trading with real money.

Join a Live online trading chatroom until you get enough forex trading knowledge and confidence to trade on your own.

Click Here to get a FREE days entry into the fx500 club live trading room

Always Remember.

Keep your risk as a percentage of your capital low (1%), equals stress free trading.

Always work out potential losses before potential profits.

We are paid to take risks, if you aren’t in a trade you cannot win a trade!!

Buy off support and sell off resistance.

Bank partial profits early and move your stop loss to break even as soon as you can.

I am learning how to trade these setups and indicators across all time frames with the help of the fantastic team at the www.fx500club.com They have a live forex chat room and share their charts so that you can watch them find potential trades in real time.

They also have a school for learning how to trade longer term charts at www.fxmonkeyschool.com.

The fx500club and fxmonkeyschool, forex trading school don’t just trade charts and indicators alone, they teach us to use correlation of the whole market before entering a trade. It truly is the best place to learn how to trade forex properly, safely and profitably. It’s all about the pips and about protecting your capital.

Click Here to get a FREE days entry into the fx500 club live trading room

Not so much using forex chart patterns today as using moving average crossovers and trading inside bar breakouts, but whatever you use you will be profitable if you follow the advice of the www.fx500club.com, live online trading school, costing just

Wow, I logged into the www.fx500club.com live online forex trading school at 6.10 am this morning and James Boord had posted possible setups already, class isn’t supposed to open until 6.30am. Anyway by the time I had read the announcements he had already entered the trade, we went short at 1.3970 with a first take profit target at the round number 1.3900.

Great call by James, there were plenty of other trades also today, short euro /jpy, short aud/usd, long usd/chf, in all I had banked 200 full pips from 4 trades by 8.00 am, moved my stops to break even and left the rest to run, free trades and a free day to go and play lol.

Trading is so much easier when done in a live online trading room, the www.fx500club.com share their charts so you can learn as you earn. All for just