Forex Dance patterns is what we refer to as chart patterns analysis in the Forex Coffee Break Education Course, to make it fun and easier to learn!
As naughty as the currency pairs may be, they often give us signals before they break out. The forex dance floor (chart) records each and every move they make. Just as you would memorize a dance pattern, memorizing the possible forex patterns and analyzing the currency pair’s movements on the chart can help you get a better idea of the market, which will eventually lead to a better investment decision.Real Life Dance Patterns – Forex Pairs Have Patterns Too!
Forex Dance Patterns – Invest Diva Metaphor
Will the currency pair’s price continue dropping, or will its trend shift? One way to figure this out is to study the patterns.
Identifying forex dance patterns on the charts (the forex dance floor) makes it easier for us to make short-term or long-term forecasts.
Our ancestors (trading grandpas) have already created cool and catchy names for different patterns. So the road has already been paved for us. Now all we have to do is to get comfortable with the patterns and use them in our analysis.
Steps to Take When Analyzing Forex Dance Patterns
Here are a few steps that you need to take in order to become comfortable with chart pattern analysis:
– Memorize the forex dance patterns.
– Memorize the interpretation of the patterns.
– Practice identifying the patterns in different charts over and over again.
– Follow up with the patterns that you identified, and see whether the interpretation came true.
– Hang a copy of the Chart Patterns Cheat Sheet provided to you at the end of this Coffee Break session on your fridge, and review it every day.
As we said previously, you can’t rely on only one method of forex analysis, let alone one method of technical analysis. Identifying chart patterns and recognizing what they forecast can become biased even at the best of times. We should always use other types of analysis and tools of technical analysis to confirm a pattern. In other words, we should always use the Invest Diva Diamond analysis.
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