In the fast world of forex trading, timing is key. What if you had a tool to scan markets, find high-probability patterns, and give you an edge? That’s where Forex Trendy comes in. It’s a software that finds the best chart patterns across many currency pairs and timeframes.
We’ll look at Forex Trendy signals on the H1 timeframe. We’ll see how it found great setups like triangle breakouts, flags, and wedges. Whether you’re experienced or new, these examples will show you how to use pattern recognition to make more money and take less risk. Ready to trade smarter? Let’s see how these trades were successful!
Knowing how to spot market trends is key to making money in forex trading.
DISCLAIMER
Trading is a high risk activity, protect your capital through the use of stop loss, making intelligent use of leverage and not investing more than you are willing to lose. The author of the post declines any responsibility for any losses incurred as a result of decisions made after reading this article. The information contained below is for informational purposes only. CFDs are complex instruments, therefore adequate knowledge is required before making any investment. Thank you for your kind attention!
Review of the EUR/JPY Trade
This trade on EUR/JPY is a great example of a flag pattern and how it works as a continuation trade. Here’s a detailed look:
Trade Setup
The trade started with a strong bearish move. This led to the flag pattern, a classic sign of a continuation. The pause in the market, marked by the parallel trendlines, helped traders spot a breakout.
The sell signal was triggered at 163.34 when the price broke below the flag’s lower trendline. This confirmed the bearish trend would continue.
Pros of the Setup:
- The pattern was clear and easy to spot.
- The breakout was strong, reducing uncertainty.
- The timing was perfect, matching the market’s momentum.
Execution of the Trade
The breakout led to immediate action, as expected. The price moved down efficiently, with no big pullbacks or false breaks.
Those who sold at 163.34 saw a steady drop to 159.67 over days. This big drop offered a great chance for profit.
Pros of the Execution:
- The market moved fast, reducing risk.
- The trade offered a big profit, improving the risk-reward ratio.
- The price hit its target, meeting the pattern’s expectations.
Cons:
- There was no second chance to enter after the breakout.
- The trade needed patience for days, not ideal for short-term traders.
Overall Trade Review
This trade was very effective, a perfect example of a flag pattern in a trending market. The entry at 163.34 was a great chance to ride the bearish trend. The market’s efficiency was clear in the price action.
The lack of a retracement after the breakout showed strong selling pressure. This was a sign the market was following the technical pattern. The profit was significant, making it a good trade for disciplined traders.
Rating: 9/10
This trade was almost perfect, with a great setup and execution. The only drawback was no second chance to enter. But for those who got in early, it was a clear win.
Review of the EUR/TRY Trade
This EUR/TRY trade showed a rising wedge pattern, a bearish reversal setup. Here’s a detailed review:
Trade Setup
The trade began with a rising wedge, a bearish pattern. The price moved in narrowing trendlines, showing weakening bullish momentum.
The sell signal was at 36.4775, when the price broke below the wedge’s lower trendline. This marked the end of the upward move and the start of a reversal.
Pros of the Setup:
- The rising wedge pattern was clear and easy to spot for technical traders.
- The breakout point was clean, reducing uncertainty about entry timing.
- The sell signal matched the pattern’s bearish implication.
Execution of the Trade
The breakout at 36.4775 started a bearish move. The price initially moved lower. But, unlike the flag pattern before, this trade saw limited follow-through.
The price dropped below the breakout level but soon consolidated. It failed to show a significant downward move.
Pros of the Execution:
- The trade confirmed the pattern’s validity with an initial bearish move.
- The entry point at the breakout was well-timed.
Cons:
- The downside momentum after the breakout was weak.
- The price action post-breakout was choppy, making it hard to get a big profit without patience.
- Traders expecting strong follow-through might have been disappointed.
Overall Trade Review
This trade aimed to profit from a bearish reversal, thanks to the rising wedge pattern. But, the limited follow-through and consolidation cut down profit chances.
The pattern worked well at first, but the lack of momentum showed the need for managing expectations and using good risk-reward strategies.
Rating: 6.5/10
This trade had a good technical entry but was limited by weak bearish follow-through. Traders could have managed risk better by tightening stops or taking partial profits early.
Review of the EUR/CHF Trade
This EUR/CHF trade is a great example of a flag pattern. It shows a bearish continuation setup. Here’s a detailed review:
Trade Setup
The trade started with a sharp bearish move, known as the flagpole. Then, the price formed an upward-sloping channel during a consolidation phase. This is a classic flag pattern, indicating a temporary pause before the bearish trend continues.
The sell signal was triggered at 0.9404. This happened when the price broke below the flag’s lower trendline. It confirmed the continuation pattern.
Pros of the Setup:
- The flag pattern was clearly defined, with parallel trendlines and a sharp preceding move.
- The breakout occurred at a significant price level, providing a clear sell signal.
- The consolidation phase was not overly prolonged, maintaining the trade’s relevance.
Execution of the Trade
The breakout at 0.9404 led to an initial downward move. But, the price action after the breakout was choppy and lacked strong momentum. The price reached as low as 0.9340 but failed to develop a sustained trend lower.
Pros of the Execution:
- The initial move validated the breakout, giving an opportunity to secure some profits.
- The price reached a key support level around 0.9340, aligning with typical flag pattern targets.
Cons:
- After the initial drop, the price action became sideways and indecisive.
- Traders holding the position longer might have faced challenges due to the lack of sustained bearish momentum.
Overall Trade Review
This trade was a valid bearish continuation setup, and the flag pattern played out initially as expected. But, the limited follow-through and subsequent choppy price action highlighted a lack of strong market conviction.
The pattern worked well for short-term traders who took profits near the 0.9340 support level. For longer-term traders, the lack of further downward movement might have required active trade management, such as tightening stops or exiting early.
Rating: 6.5/10
The setup was technically sound, and the trade offered a decent short-term opportunity. But, the absence of strong momentum post-breakout slightly diminished the trade’s overall value. This trade shows the importance of adjusting expectations and taking partial profits when market conditions become less favorable.
Trade Review: CHF/JPY, Pattern Flag
This trade on the CHF/JPY currency pair shows a bearish flag pattern on the H1 timeframe. It led to a successful sell signal. Let’s dive into the details:
Pattern Analysis
- The flag pattern has a steep downtrend (flagpole) and a consolidative, upward-sloping channel (flag).
- The price stayed within the upper and lower trendlines, keeping the pattern’s integrity before the breakout.
- A breakout below the lower trendline at 173.63 confirmed the bearish continuation.
Trade Execution
- Sell Signal: The breakout at 173.63 was a clear signal to enter a short position.
- Target Achievement: The price fell as expected, reaching the target near 170.19. This offered a good chance for profit.
Strengths of the Trade
- Clear Pattern Recognition: The flag pattern was well-defined, making it a high-probability setup.
- Entry at Key Breakout Point: Entering at the breakout point minimized the risk of false signals.
- Timeframe Selection: The H1 timeframe offered a detailed view of the pattern without too much market noise.
Overall Review
This trade shows how technical analysis can be effective with a reliable pattern. The execution followed the breakout strategy, and the target was hit successfully. Good risk management and pattern recognition made this a solid trade.
Rating: 9/10 🚀
Review of the USD/CAD Trade
This USD/CAD trade shows a classic rising wedge pattern, a bearish reversal setup. Here’s the detailed review:
Trade Setup
The trade started with a rising wedge pattern. This pattern has converging trendlines as the price goes up. It’s a bearish sign, showing weakening momentum.
The price hit the upper wedge boundary and then sharply fell. The bearish breakout happened when the price broke below the lower trendline. This confirmed the pattern and triggered a sell signal.
Pros of the Setup:
- The rising wedge was clear and easy to spot, with obvious converging trendlines.
- The pattern showed a loss of bullish momentum, fitting its bearish nature.
- The sell signal matched the technical expectation of a reversal.
Execution of the Trade
The breakout led to a sharp bearish move, with the price falling significantly. The downward momentum was strong, and the price action was clear. This gave traders a good chance to profit from the setup.
Pros of the Execution:
- The price reacted sharply to the breakout, proving the pattern’s validity.
- Traders who entered on the breakout could have seen significant downside movement.
- The move was efficient, avoiding prolonged consolidation or choppiness.
Cons:
- the price bounced near the previous low, then went on to break out above the previous highs, putting at risk the positions of traders with tight stop losses
Overall Trade Review
Great trade for short term traders, but for those holding positions longer there may have been problems with stop losses.
Rating: 7/10
This trade performed quite well, with the rising wedge pattern delivering a high-probability bearish reversal. The price action post-breakout was unpredictable reminding us once again the importance of trading with strategies.
Review of the USD/NOK Trade
This USD/NOK trade shows a bullish flag pattern, a setup for more of the same. Here’s a detailed look:
Trade Setup
The pattern started with a quick, sharp move up (flagpole). Then, the price settled into a downward channel. This is a classic flag pattern, showing a brief pause before the trend continues.
The price broke out above the flag’s upper trendline, confirming the pattern. This breakout was the signal for a long entry, with a key level at 11.4858 as shown on the chart.
Pros of the Setup:
- The bullish flag pattern was clear, with parallel lines and a sharp initial move.
- The consolidation was orderly and brief, keeping the trade relevant.
- The breakout matched the pattern’s bullish signs.
Execution of the Trade
After the breakout, the price moved up, but then it got choppy. The price couldn’t stay above 11.4858, leading to a pullback.
Pros of the Execution:
- The breakout confirmed the bullish flag, opening a chance for quick gains.
- The initial move after the breakout was good for traders with tight targets.
Cons:
- The follow-through was weak, with the price failing to keep moving up.
- Traders holding for more might have been stopped out or seen smaller profits due to the pullback.
Overall Trade Review
This trade was a valid continuation setup with a strong technical basis. The breakout initially matched the bullish flag’s expectations. But, the lack of sustained follow-through limited the trade’s full promise.
For short-term traders, this trade offered a quick chance to make gains. But, for longer-term traders, the choppy price and pullback needed active management. This could include scaling out profits or adjusting stop-loss levels.
Rating: 6/10
This trade was a good example of a bullish flag pattern. But, the execution was limited by the lack of strong follow-through. The setup is solid, but market conditions limited the chance for a bigger move.
Review of the GBP/USD Trade
This GBP/USD trade showcases a bearish flag pattern, a continuation setup. Here’s a detailed review:
Trade Setup
The setup began with a strong bearish move (flagpole), followed by a consolidation phase where the price formed an upward-sloping channel. This upward correction is typical in a bearish flag pattern, signaling a temporary retracement before the resumption of the dominant downtrend.
The sell signal was anticipated upon the price breaking below the lower trendline of the flag, confirming the bearish continuation. The key level for confirmation appears near 1.2297, as seen in the chart.
Pros of the Setup:
- The bearish flag was well-defined, with clear parallel trendlines and a sharp prior decline.
- The consolidation phase adhered to the flag pattern, showing an orderly retracement.
- The pattern was forming within the context of a larger downtrend, reinforcing the bearish bias.
Execution of the Trade
The trade played out as expected initially, with the price breaking below the lower trendline of the flag. However, the breakout lacked strong momentum and follow-through, as the price remained choppy and hesitant to continue the downtrend decisively.
Pros of the Execution:
- The breakout confirmed the flag pattern, providing a clear sell entry point.
- The price attempted to move lower, offering opportunities for short-term profits.
Cons:
- The follow-through after the breakout was weak, leading to sideways price action.
- Traders holding for a more substantial move would have encountered challenges due to the lack of sustained bearish momentum.
Overall Trade Review
This trade was a textbook bearish flag setup but failed to deliver a strong follow-through after the breakout. While the initial move provided an opportunity for short-term profits, the choppy behavior post-breakout limited the trade’s overall potential.
For short-term traders, this setup might have yielded moderate gains. However, for longer-term trend followers, the lack of clear momentum would have necessitated active trade management, such as taking partial profits or adjusting stops.
Rating: 5/10
The trade had a solid technical basis with a clear bearish flag pattern. However, the weak momentum after the breakout reduced the overall profitability and risk-reward potential of the setup. This trade highlights the importance of monitoring momentum after breakout confirmations.
AUD/NZD Triangle Pattern
1. Identifying the Setup
Forex Trendy, spotted an ascending triangle on the H1 timeframe of the AUD/NZD pair. This pattern hinted at a bullish trend, as the price kept hitting higher lows near the 1.1084 level. The triangle showed growing interest from buyers, fitting with the overall upward trend.
2. Trade Entry
A strong bullish candlestick closing above 1.1084 confirmed the breakout.
3. Stop Loss & Risk Management
To manage risk, the trader set a stop loss below the last higher low, at 1.1021. This allowed for some price movement without early trade closure due to market noise.
4. Price Action & Confirmation
After the breakout, the price jumped up, confirming the ascending triangle. It moved towards 1.1143 and then consolidated, showing possible resistance.
5. Trade Exit & Take Profit
The trader set the take profit target at the triangle’s height plus the breakout point, aiming for 1.1130-1.1150. The price hit this zone, allowing the trader to close the position with a profit.
6. Trade Outcome & Lessons Learned
- The trade was a successful breakout with a good risk-reward ratio of about 1:2.
- Forex Trendy was key in spotting the pattern, helping the trader make a high-probability trade.
- Waiting for clear confirmation of the breakout was key, showing the value of patience and disciplined trading.
Conclusion: Lessons from the Winners and Losers with Forex Trendy on H1
Using Forex Trendy on the H1 timeframe taught us a lot. We saw how pattern recognition can lead to profits. This is true when you manage risks well and enter trades at the right time.
But, we also learned from our losses. They showed us the need for patience, confirmation, and adapting to market changes. This is key to success in forex trading.
Forex Trendy is great for finding good trading opportunities. Yet, making money in forex trading also depends on good judgment, risk management, and learning from each trade. By studying both wins and losses, traders can improve their strategies. This helps them succeed in the changing world of currency markets.
Check charts at tradingview.com