Forex is a market that is driven by demand and supply, and traders often use different indicators and signals to make informed trading decisions. One of the signals that traders use to determine the trend of a currency pair is the i + shs bullish found pattern. This pattern is a bullish reversal pattern that can indicate a potential uptrend in the market.
The i + shs bullish found pattern is a combination of three patterns: the head and shoulders pattern, the inverted head and shoulders pattern, and the “i” pattern. These patterns are chart patterns that traders use to identify potential trend reversals in the forex market.
The head and shoulders pattern is a bearish reversal pattern that consists of three peaks. The first and third peaks are of similar height, and the second peak is the highest. The neckline is drawn by connecting the lows between the first and second peaks and the second and third peaks. The pattern is complete when the price breaks below the neckline.
The inverted head and shoulders pattern is the opposite of the head and shoulders pattern. It is a bullish reversal pattern that consists of three troughs. The first and third troughs are of similar depth, and the second trough is the lowest. The neckline is drawn by connecting the highs between the first and second troughs and the second and third troughs. The pattern is complete when the price breaks above the neckline.
The “i” pattern is a chart pattern that is formed when the price makes a sharp move up, followed by a sideways consolidation, and then another sharp move up. The pattern is named after the shape it forms on the chart, which looks like the letter “i.”
The i + shs bullish found pattern is formed when the price forms an inverted head and shoulders pattern, followed by an “i” pattern. The pattern is complete when the price breaks above the neckline of the inverted head and shoulders pattern, followed by a breakout above the consolidation of the “i” pattern.
When traders see the i + shs bullish found pattern on the chart, they interpret it as a bullish signal. The pattern suggests that the market has reached a bottom and is ready to reverse higher. Traders often use this pattern to enter long positions and ride the trend higher.
However, it is important to note that the i + shs bullish found pattern is not a foolproof signal. Like any other technical indicator, it can produce false signals, and traders should always use other indicators and analysis to confirm their trading decisions.
In conclusion, the i + shs bullish found pattern is a bullish reversal pattern that can indicate a potential uptrend in the forex market. Traders often use this pattern to enter long positions and ride the trend higher. However, traders should always use other indicators and analysis to confirm their trading decisions and manage their risk.
