Being able to identify and understand charts on TurboXBT will greatly improve your chances of being a successful trader. It’s a skill you’ll need to develop if you want to be consistently landing 90% profits from single short-term trades on the platform.
As a leader in short-term trading, TurboXBT offers favourable conditions to ensure you have the edge over other traders on other platforms. That is why we take the time to educate you on key concepts, such as chart formations, to help you understand how they work and what they can do for your trading strategy.
What are Chart Formations?
Chart formations are patterns that appear on charts that traders can use to predict future price movements.
When a pattern regularly appears, traders are able to identify them as chart formations and leverage this information to their advantage. For instance, if a trader is able to detect a downward trend, they can act accordingly in response and maximize their earning potential.
What can a Chart Formation Tell You?
Chart formations are used in technical analysis (TA), a process in which traders forecast future price movements of an asset by examining historical prices, volume changes, and other metrics.
There are a large number of chart formations traders can learn and use to spot profitable trading windows on TurboXBT. Some or more well known than others, common char formations include: the rising wedge, head and shoulders, double top and button, triangles, cup with handle, and price channel.
Chart formations have varying possibilities since the price does not always move as predicted when a certain formation develops. But, traders will still look for chart patterns and then monitor whether the price remains in formation or breaks out; either scenario presents possible trade opportunities, and so testing these predictions is a vital part of the learning process.
Traders should keep an eye out for fake breakouts. A false breakout occurs when the price comes out of a pattern, which leads traders to think that the price is now advancing in he line of the breakout, which then rapidly reverses and returns to the chart structure.
Mastering Chart Formations on TurboXBT
The best way to learn is to practice. The more you trader and make predictions based on your analysis, the better you’ll get at identifying chart formations, using them to your advantage, and avoid the risks of false breakouts.
To get starts, take advantage of the TurboXBT $1000 demo account today. This gives you access to all of our tools and lets you test out strategies without risking any real money.
