Forex On Demand

Foreign Currency Trading

Professional Currency Trading Accounts
  • Home
  • Currency Trading
  • ForexTerminology
  • Market Order Types
  • Technical Analysis
  • Reading Charts
  • Fundamental Analysis
The forex market Why currency trading Opening an Account Calculating Profit & Loss Currency trading articles Selecting Broker
Pips and Ticks Currency Trading Quotes Leveraged trading and margin
Placing Orders Market Orders Limit Orders Stop loss orders Take profit orders Trailing stop orders Entry Orders
Technical Analysis Understanding charts Line charts Bar charts Candlestick charts Point & Figure Charts Long & short positions
Trend types Uptrends Downtrends Sideways Support resistance Triangles Head shoulders Tops bottoms Flags pennants rectangles
Fundamental Analysis Major Indicators
Trader Application
The leading independent currency trading platform.
Get it now for free


Goverment Policies

  • Fiscal policies
  • Monetary policies
  • Reserve requirements
  • Discount rates
  • Open market operations
  • Exchange rates
  • Intervention
Currency trading articles

Currency Trading Trend Types - Flag, Pennant and Rectangle Patterns

In this section we teach you how to use certain currency trading patterns to know how to further invest in the market. Reading currency trading charts is perhaps the most important skill for technical analysis, and all it takes is to learn to recognize the right currency trading patterns. In this section we cover three of these trend types - Flags, Pennants and Continuation Rectangles.

Flag Trend Patterns

Flag patterns are continuation patterns that occur quite frequently in currency trading. Flag patterns are seen as a long currency trend, followed by a short turn in the opposite direction, and finally a continuation of the previous direction. Flag patterns are named that because of the flag shape that is created by the currency price regression.

Online Trading Foreign Currency requires trader to be aware of how charts are analyzed, not only in general and through guessing, but by a true recognition of the different trend patterns that the charts are built on. This is what we will describe next.

Pennant Trend Patterns

Pennant patterns are similar to flag patterns, when the difference is that the trend line during the phase of regression is narrowing instead of parallel. They are viewed as a long price move, followed by a regression period with a narrowing price line. This narrowing price line gives the pennant pattern the appearance of a pennant.

Rectangle Trend Patterns

This pattern is seen with a preliminary trend, followed by a horizontal prize move and finally with the continuation of the previous trend.

Posted by Greg Paster


News

20/07/11
State Street Cuts 850 Jobs After Earnings Miss Estimates
http://www.businessweek.com/
20/07/11
Caixin Online: South China Sea energy riches beckon
http://www.marketwatch.com/
20/07/11
Earnings Preview: Philip Morris Int'l
http://news.yahoo.com/
20/07/11
Coca-Cola’s Results Are Lifted by Overseas Business
http://www.nytimes.com/
Getting Started?

Getting Started?


Download our forex trading software - Receive a FREE Demo account by Easy-Forex.com
Apply Now
Forex Pro Account

Forex Pro Account


Get your pro account with exclusive benefits such as instant deposits, fixed spreads, continuous quoting and more!
Apply Now

Free Tools

Forex Currency Converter Forex Currency Converter
Forex Pivot Point Calculator Forex Pivot Point Calculator
Forex Margin Calculator Forex Margin
Calculator

ICTS Currency Trading Presentation


Forex Video Presentation

Watch our step by step video presentation. An introduction to the ICTS foreign currency trading platform.

Watch Presentation

Home  |   Contact   |  Catalogue   |  Content Finder
Privacy declaration  |   Copyright information  |   Disclaimer  |   Terms of use
Copyright © 2014 ForexOnDemand.com. Foreign Currency Trading. All rights reserved.