Course Content
Module 1
What is forex?Forex is Foreign exchange.It is the opportunity to trade two currencies against each other. If you think one currency will be stronger versus the other, and you end up correct, then you can make a profit. If you’ve ever traveled to another country, you usually had to find a currency exchange booth at the airport, and then exchange the money you have in your wallet into the currency of the country you are visiting.The foreign exchange market, which is usually known as “forex” or “FX,” is the largest financial market in the world. The Forex market is a global, decentralized market where the world’s currencies change hands. Exchange rates change every second so the market is constantly moving. Most of the currency transactions that occur in the global foreign exchange market are bought (and sold) for speculative reasons. Currency traders (also known as currency speculators) buy currencies hoping that they will be able to sell them at a higher price in the future.
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Forex Trading Basics Level 1 (Free)
    About Lesson

    Triangle Chart Patterns

    A triangle chart pattern involves price moving into a tighter range as time passes and visually displays a battle between bulls and bears. The triangle pattern is generally categorized as a “continuation pattern,” meaning that after the pattern completes, it’s assumed that the price will continue in the trend direction it was moving before the pattern appeared. A triangle pattern is generally considered forming when it includes at least five touches of support and resistance. For example, three touches of the support line and two for the resistance line. Or vice versa. Just like there are three little pigs, there are three types of triangle chart formations: symmetrical, ascending, and descending.

    Symmetrical Triangle

    Symmetrical Triangle

    A symmetrical triangle is a chart formation where the slope of the price’s highs and the slope of the price’s lows converge to a point where it looks like a triangle. What’s happening during this formation is that the market is making lower highs and higher lows. This means that neither the buyers nor sellers push the price far enough to make a clear trend. This would be a draw if this were a battle between the buyers and sellers. This is also a type of consolidation.

    Ascending Triangle

     

    Ascending Triangle

    An ascending triangle is a type of triangle chart pattern that occurs when there is a resistance level and a slope of higher lows. What happens during this time is that there is a certain level that the buyers cannot seem to exceed. However, they are gradually pushing the price up, as evidenced by the higher lows. In the chart above, you can see that the buyers are starting to gain strength because they are making higher lows. They keep putting pressure on that resistance level, so a breakout is bound to happen.

    Many charting books will tell you that, in most cases, the buyers will win this battle, and the price will break out past the resistance. However, our experience has been that this is not always the case. Sometimes, the resistance level is too strong, and there is insufficient buying power to push it through. Most of the time, the price will go up. The point we are trying to make is that you should not be obsessed with which direction the price goes, but you should be ready for movement in EITHER direction.

    Descending Triangle

    Descending Triangle

    As you probably guessed, descending triangles are the opposite of ascending triangles (we knew you were brilliant!). A string of lower highs forms the upper line in descending triangle chart patterns. The lower line is a support level in which the price cannot seem to break. In the chart above, you can see that the price is gradually making lower highs, which tells us that the sellers are starting to gain some ground against the buyers. Most of the time, and we say MOST, the price will eventually break the support line and continue to fall. However, in some cases, the support line will be too strong, and the price will bounce off it and make a strong move up. The good news is that we don’t care where the price goes. We know that it’s about to go somewhere. In this case, we would place entry orders above the upper line (the lower highs) and below the support line.