Price action trading creates chart patterns in the financial markets through the buying and selling of positions by traders and investors. A chart pattern is a visual record of the votes by bears and bulls around different price levels. There are different types of chart patterns. Continuation chart patterns that confirm a trend is going to continue in the current direction and also reversal patterns that signal a trend is likely to reverse. Chart patterns can be considered in a bullish trend when there are higher highs and higher lows or bearish trend when there are lower highs and lower lows being made on the … (full story)
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