Charts are the collective representation of the personalities of all trading participants. They represent the hopes and dreams, fears and greed of all traders as they observe and react to currency moves.

It is human nature to react in similar methods and to repeat these reactions. Therefore it is no surprise that chart patterns tend to repeat themselves and can be used to provide an edge in trading.

The chart patterns listed below are very common and thus have the ability to assist in successful predictions of future price moves.

Reversal Patterns

Reversal patterns occur at the end of most every trend and thus dictate a change in direction. While viewing the reversal patterns listed below keep the following in mind:

• In order for any reversal pattern to be valid an established trend must be in place.
• Reversal patterns work for both up trends and down trends.