stock patterns is similar with forex patterns?

Discussion in 'Technical Analysis' started by tradeforum, May 18, 2006.

  1. Hi all,

    I am studying foreign currency exchange patterns. I ordered a book: Encyclopedia of Chart Pattern ". however, it is talking about those patterns in stock. Can I use these stock pattern in forex? Is any difference between the patterns used in stock and forex? thanks
  2. Basically no, excepting stocks gap a lot more often than forex pairs, and fx volumes originate from the broker not an exchange unless you're trading futures.
  3. Thanks Wallace, I found this difference between them after you told me. :)
  4. They're not fully transferrable. FX trends more.
  5. They're fully transferable. Stocks trend more. Instead of being a master of all of the patterns, identify the few patterns that you believe are most important and be on the lookout for those in whatever you are trading. Don't let small losses grow into being big losses.
  6. ivob


    IMO there's more symetry in forex.
    There's not really a bull or bear market in forex just the value of one currency related to the other currency. Stocks go down in a different way than they go up. (faster). In currencies this is not the case. It's a very technical market.