Remember that a trading system alone does not make a good trader. Ed emphasizes this in the book. You could have the best trading system in the world and still lose money. With that PSA out of the way, if you do have room in your trading quiver for a new strategy, then there are two reasons why you should read this book and start testing his strategies. First, the systems that he gives you in this book are complete systems. Some books are simply lead generators to upsell a more expensive course. That is not the case with this book, you get the complete systems.

Second, the methods are simple and explained very clearly. This may seem like it is easy to do, but you will be surprised how much some authors can complicate even the simplest trading system.

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So to come back to the question at the beginning of this section, these methods are only going to be as good as you make them. Ed lays out everything you need to get started.

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He uses standard indicators and measuring tools. It is up to you learn them, test them and figure out if they work with your personality. One interesting thing that I learned about Ed from this book is that he used to be a rockstar…literally. But once I learned that fact, things started to make sense. It may have even contributed to making me like the book more. His humor and his more conversational tone was refreshing, compared to other trading books that I read.

Forex Patterns and Probabilities is one of those books that you will probably keep in your library for a long time.

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I have the book which I like a lot because of which I decided to buy the kindle edition so that when going to work or travelling far from home I do not have to carry around extra weight. There are some issues with the kindle edition, like incomplete sentences, incomplete paragraphs and repeated parts of a sentence in a sentence. The book itself deserves a 5-star rating. Report abuse. Just by looking at the title of this book, I would never of picked it up, but now that I have finished it I'm glad.

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There are a lot of great strategies in this book that still work today. I will be reading this book again and again. Thank you and highly recommend it. The book is clearly written from someone who trades fx. It does not contain any magic formulae or tricks but rather it centers on experienced technical analysis and knowhow about how the market works.

Forex Patterns and Probabilities: Trading Strategies for Trending and Range-Bound Markets

Would have given it 5 stars if it were fully up to date. One person found this helpful. Very enlightened and details. Back to top. Get to Know Us. Make Money with Us. Amazon Payment Products. Let Us Help You. Amazon Advertising Find, attract, and engage customers Audible Audio books read aloud for you. Amazon Second Chance Pass it on, trade it in, give it a second life.

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A plan before entering a trade includes defining a "stop loss" level where if the stock falls to a certain price point, you automatically sell, take a small loss, and move on to the next trading opportunity. A plan would also include a price objective where the trader would look to unload some if not all of the position to take profits.

Read more: Bank of America says a new bubble may be forming in the stock market - and shares a cheap strategy for protection that is 'significantly' more profitable than during the past 10 years. A double bottom is a bullish reversal pattern that describes the fall, then rebound, then fall, and then second rebound of a stock. It's generally accepted that the first and second bottom should be within a couple percent near each other, if not at the same level.

A double bottom typically takes two to three months to form, and the farther apart the two bottoms, the more likely the pattern will be successful.

An ascending triangle is a bullish continuation pattern and one of three triangle patterns used in technical analysis. The trading setup is usually found in an uptrend, formed when a stock makes higher lows, and meets resistance at the same price level. This pattern creates a well-defined setup for traders. If the stock breaks above horizontal resistance, traders will buy the stock, and set a stop loss order usually just below the prior resistance level.

But if the stock breaks below the rising support level, a short trade signal would be generated. An ascending triangle is a high probability setup if the breakout occurs on high volume, and is more reliable than a symmetrical triangle pattern. A cup and handle is a bullish pattern that resembles a cup, formed by a basing pattern that typically looks like a "U," followed by a handle that is formed by a short-term down trend.

A trader could generate a measured move price target by measuring the depth of the cup in price, and add that amount to the lid of the cup. A bullish flag pattern occurs when a stock is in a strong uptrend, and resembles a flag with two main components: the pole and the flag. This pattern is a bullish continuation pattern. Typically traders would buy the stock after it breaks above the short-term downtrend, or flag.

A measured-move price target can be obtained by measuring the distance of the pole, and adding it to the top right corner of the flag. Bullish flags are short-term patterns that ideally last one to four weeks, typically don't last longer than eight weeks, and usually follow an sharp uptrend. Similar to a bull flag, a bullish pennant is a continuation pattern that consists of a pole and a symmetrical triangle, usually following an uptrend in price.

Rather than a period of sideways consolidation in the shape of a rectangle, price consolidates in the shape of a symmetrical triangle, making a series of higher lows and lower highs. The uptrend in the security will likely continue on if the stock breaks out above the pennant.