Reviewing the trend is our best friend in the Forex trading

Looking at the graphs and the trend of price movements in the past gives you a very good overview to predict the price move in future.
Although it looks pretty trivial, it does help you get profitably.

Once you understand the price trends, you can identify the best time to buy the currency pair.
It is best to follow the trend. Typically, moving upwards will give you more buying chances and downward more selling chances.

But, how to identify the type of price movement? What are its characteristics?

The most convenient way of figuring this out is by looking at the charts. This way you can see the up or down movement.

Detect type of movement in Forex.
The price movements in the chart form the peak and concave points that are easily recognizable.
In an upward trend, the movement of prices forms higher peaks and higher valleys.
A graph values thousands of words. Let's take a look at the chart below:

This chart shows a downward trend, and this chart suggests that the trader should sell.


It is important to note that it is difficult to detect the type of movement on some days, there is not much change in prices for some days.
And sometimes price changes outline a price range that creates very uncertain conditions. The following figure shows an example of this state.

The forecast is much simpler when you can see a trend that when the price is in a range. You must take caution.

The unpredictable movement in this case is the reason that many traders avoid trading in the range and wait for the renewing signal of the uptrend or downtrend.

Bat Pattern

The bat pattern is a 5-point correction structure developed by Scott Carney in 2001. This template has specific Fibonacci measurements for each point in its structure.
 It's important to note that D is not a point, but an area in which the price trend is likely to be reversed (PRZ). PRZ containing 3 coordinate levels of convergence:

1.  0.886 Modification from base XA,
2.  Stretch CD = N * AB, usually 1.27 AB = CD And 
3. The Stop Loss forecast is BC to 1.618.

The point B from the initial XA base should be less than 0.618 Fibonacci, preferably 0.50 or 0.382 and the

The first goal is to point 0.382 of the AD and the second target is 0.618 AD correction. A common point to choose a stop loss or is behind the X-Point. Conservative traders may seek additional approval by other indicators. Bat pattern can be downward and upward.
All patterns may fall into a wider range of trends or ranges, and traders should be aware of it (refer to Elliot Wave Theory for relevant information).

Here is step by step guide;

• The first return from point A, which is the end point of the first wave, is 0.382 or 50% Fibonacci. Point B.
• Point C can be anywhere between points A and B.

To get the area D.

• Draw line 0.886.
•  Calculate CD length to 1.27 * AB.
• Draw Fibonacci Line 1.618.
• In the bullish market, buy at Point D.
• In the bearish market, sell at Point D.

                                            Uptrend                                        Downtrend



See the following example of a Bat pattern on GBPUSD which I posted on eToro.

And the following photo is the day after:

You can see the price jumped from 1.2770 to 1.3026. Yes, it feels good when your technical analysis works.

Here is the video!