Making money on the forex market—or any other exchange, for that matter—can certainly be tricky. But thanks to a number of chart patterns, you can learn to anticipate price movements and act accordingly. Making money doesn’t have to be impossible.

Unfortunately, with so many different patterns out there, it can be difficult to figure out which ones are best for determining where prices will go in the near future.

To make your job easier, we’ve outlined some of the more helpful continuation and reversal patterns below in a forex cheat sheet. Become familiar with each of them to make better trades.

When you choose to engage in forex trading, you’ll quickly come to understand that it pays dividends to make use of any and every tool that is available. These tools should help push forward your trading strategy, improve your output, and effectively help generate more profit. Looking at what could very well take your forex trading efforts to the next level, forex trading signals happen to be something that no active trader can really afford to ignore.

Signals are electronically transferred titbits of information that you can receive via email, SMS, text, and—in some circumstances—even via social media platforms. This information often represents critical need-to-know data related to the market. In many ways, a signal is an on-the-fly update that you can incorporate into the forex trading decisions that you make.

Technical analysis is the study of actual movements in the price of a financial product.  However, in my opinion, technical analysis is less about trading and more about the study of mass psychology. We study the way people react in certain situations in the market, which is quite prevalent when identifying and trading using chart patterns.

Both the moving average convergence divergence (MACD) and the relative strength index (RSI) rank among the most popular momentum indicators used in forex trading. When used in combination with other technical indicators, both MACD and RSI can offer value in validating trade opportunities and timing trades to optimize your risk management practices.

Of the many different chart patterns used to predict price behavior for forex currency pairs, wedge patterns are one of the most commonly used patterns.

Wedge patterns are popular for their ease in analyzing on a chart as well as their proven value over time in predicting future price breakouts on the forex market. But while these patterns are easy to identify on a chart, the best practices for trading around them can be a little more complicated and dependent on your overall trading strategy. 

Here’s an overview of how the wedge pattern can be used in your forex trading strategy as well as how to plan trades that minimize risk and maximize potential profit.

As you probably already know, the forex market is open and active 24 hours a day, seven days a week. Traders can log onto a trading platform at any time to move currency around, but this doesn’t necessarily mean that people should be trading around the clock. 

When trading forex, timing can often be everything, as there will always be good times to trade and not-so-good times to trade. To ensure that you only trade at the optimum moments, the following details the best times to trade forex, along with the times when it’s well worth staying away from the market.

The relative strength index, or RSI, is a price momentum indicator in the same family as the moving average convergence divergence (MACD) and stochastic oscillator. Like other momentum indicators, the RSI is charted on a separate graph adjacent to price and has an oscillator range between 0-100. Most traders use the RSI to identify overbought and oversold market conditions and locate trade entry and exit points, but it can also be used as a divergence indicator.

The moving average convergence divergence (MACD) is a popular indicator that can be used to confirm trend strength, direction, and momentum. Whereas other indicators are simply added to a price action chart, the MACD is charted on its own adjacent graph.

As its name suggests, the MACD leverages a moving average variation called an exponential moving average (EMA). As opposed to its close relative, the simple moving average (SMA), the EMA is a weighted average that places greater mathematical significance on the most recent data point in a given set. 

Due to this difference, EMAs tend to be more sensitive to small market changes than SMAs—though greater sensitivity often comes at the price of greater volatility.