Webinar : Trading Consolidation Patterns in the Forex Market

Online, May 25, 2010 (Newswire.com) - Varengold Bank, the award winning German investment bank, today announced a new webinar on consolidation patterns in the forex market on this Wednesday, 26 May at 7 PM Dubai time, This webinar will introduce traders to six consolidation patterns. It will discuss the formation of the patterns and how to use them to find trade entry points and stop placement.

"Consolidation patterns occur across all markets," says Christopher Swindell, Head of Research, Dubai, "by identifying these patterns traders are able to find high probability trades with well defined risk and profit targets."

There are 6 major consolidation patterns: rectangle, pennant, bull flag, bear flag, descending triangle, and ascending triangle.

As the name suggests, the rectangle consolidation is a pattern in which the market trades between two approximately parallel lines that form support at the bottom and resistance at the top.

A pennant is a triangular pattern that angles down from the top of the chart and up from the bottom of the chart, tapering to a central point.

Bull flags are retracement patterns within an uptrend, while bear flags are retracement patterns within a down trend. They indicate a continuation of the trend.

Descending triangles generally have a consistent support level with the market finding resistance at progressively lower levels. A descending triangle indicates that the market will move lower once the major support level is broken.

In contrast, an ascending triangle generally has a consistent resistance level with the market finding support at progressively higher levels. An ascending triangle indicates that the market will move higher once the major resistance level is broken.

Since these patterns are based on geometric shapes, more visually attuned traders may find them easier to identify.

The webinars are interactive so guests may ask questions during the presentation. In addition, participants who want more details about specific features or strategies will have the opportunity to ask questions and view live demonstrations of the strategies discussed at the end of each webinar.

For further information about free admission to the webinars, please contact Christopher Swindell at [email protected] or +971 4 70.50.470. To view the webinar go to http://vyew.com/room#/890028/consolidationpatterns.