MinorChant
I recommend not getting diverted by trading multiple pairs when learning forex. Choose one and stick with it. Currency pairs are like children... they may have the very same parents but their characters are unique. I like EUR/JPY because it moves 100-180 pips each day, generally trends nicely and matches with my trading plans. AUD/JPY and GBP/JPY tend to mirror the behaviour of EUR/JPY and each other but have their own traits. Discover one, then diversify.
With currency pairs (EUR/JPY), the initial currency (EUR) is that the commodity and the second currency is that the money (JPY). In case you've got a forex account in USD and you buy EUR/JPY, then your broker converts your USD to JPY, subsequently purchases(or sells) EUR with all the converted JPY. When you exit your position, your broker subsequently converts the JPY back to USD. Confused?
Fractals
in summary, fractals inform you when the behaviour of this currency is changing on a period by period basis.
There's a lot of debate on this forum about fractals so perform a search. Here's an interesting debate on the topic: https://www.forexsoutheast.asia/fore...133-forex.html
Patterns
Yes, you're correct. I mean reversals and continuations. Tops, double tops, head and shoulders, dead bounce, ascending triangle, descending triangle, channels etc. Look for the forum for this because it is worth more than gold to find out. These patterns occur daily and increase trading success. For instance
Support and Resistance
Here's a fantastic thread on the topic- https://www.forexsoutheast.asia/gene...ws-source.html
I really like to use pivot points. Of all of the technical indiors this is the best because it is used by institutional traders around the world daily. It sets the tone for the day and you understand if the day will be bullish or bearish. For instance, if the day opens beneath the pivot price/point then generally speaking, the day will be bearish. If it opens over the pivot price/point then the day will be bullish. They are really great to watch in action because you may see prices bounce of support and resistance lines since the day advances. You can see the way the price acts when it hits a high or low for the day.
Require EUR/JPY today (18 Oct 2007) from the M15 chart. The price opened on the pivot (165.61), headed down to the .5 support line, turned and led by means of the pivot and bounced of the top .5 resistance line... pretty cool huh? When it struck the .5 resistance line, the bulls attempted two to break through and failed... a double top pattern example. After neglecting the second time that the bulls gave up and the bears took on dropping the price by 82 basis points in 1hour 15min.
Weakness and Power
Open EUR/JPY 17 Oct 2007, change to M15, time 15:30 into 19:45. This is an ideal example of pull back and fatigue. Notice how the price pulls back at 17:30? The bears are taking a little break and the bulls take over. After a short time, the downward trend persists. This pullback is an chance to short even further. I exchanged this tendency from top to pullback and shut the position only because I had to stop trading for the day. These opportunities present themselves with good frequency. You'll see that at the base of the downward tendency, another fractal formed round the 1st support line that took the price back up. Trading this specific pattern through to conclusion would have yielded 150 points in 6 hours of trading.... Absolutely awesome!
Weakness and Power timeframes
All timeframes display this fractal pattern.
Hope this helps