Usuario:Forex Millennium Review
Do chart patterns work in trading Forex? Bar Forex Millennium and Candle formations? Triangles, etc? Here is a better question. If a chart pattern appears on your chart or an automated system finds a chart pattern, what are the chances it will reverse? One of the major problems with chart patterns is that traders locate them and discuss them as if they materially existed. Many devise important sounding terminology to describe what the particular pattern is saying about the current market conditions. Or that the pattern describes a certain market behavior at that particular moment. Most of this is nonsense.
With all the traders in the world trading a currency pair such as the EURUSD anyone who can find their head to put on a hat should realize that bars on a chart can represent very little about market psychology.
The Hammer or Pin Bar One particular pattern that price action traders like to point to, is the pin bar or hammer. This is a reversal signal. When it works it is found at the bottom of a downtrending price trend. The next bar is up and the trend reverses. You can scroll through your chart and find these and many do occur at the bottom of a downtrend. However, just as many of these can be found within a trend where the signal failed.
