Multiple Forex Trading Wave Patterns

In my previous post, you learned about the single price movement for online forex trading, fibonacci waves. This post is the continuation of my previous posts on the Forex Sailing trading method. Please go back to the Forex Sailing Introduction to begin learning how to use this style of forex trading.

On a small scale, forex trading prices move in a single fibonacci wave. If the price is going to continue in an uptrend, there will be several forex candy-canes moving up. For a downtrend, several forex umbrella-handles will link together to form the downtrend.

Double Forex Trading Price Waves

Online forex trading fibonacci waves happen in a few wave configurations. Although single wave patterns are common, the double wave pattern is the most common of the multiple wave patterns. The double fibonacci wave is simply two fibonacci waves in a row:

Triple Forex Trading Price Waves

Triple fibonacci waves are also common in online forex trading. Instead of two waves combining to form an uptrend or downtrend, three waves combine to form a fibonacci wave pattern:

Multiple Forex Trading Waves

Occasionally more than 3 fibonacci waves will combine into a 4 or 5 wave pattern. For our purposes, we'll consider multiple wave patterns too rare for online forex trading. Since these wave patterns are rare, we can't expect more than 3 waves before the trend ends. When forex trading, get off after the third wave. It's too risky to stay on after the third wave!

Trading Forex Sailing Waves

In the upcoming Forex Sailing video webinar, I'll show you exactly how to use this concept for Forex Sailing. Before getting technical with numbers and rules, understand what we're trying to do.

The SINGLE FACT of Forex Trading

So far, I'VE SHARED A VERY IMPORTANT FACT WITH YOU:

FACT: Forex prices move in 1, 2 or 3 wave patterns

This is the one simple fact that you'll be using to become an expert at online forex trading. Everything else we do with forex trading is just an application of this FACT. Memorize this FACT because all you need to do is get good at this one FACT and you'll become a skilled forex trading genius!

Beginning of a New Trend

A common question that I've had for years from forex traders is:

Question: How do you know when a trend is over and a new one has begun?

Answer: Wait for a single fibonacci wave to form AFTER:

• A trendline break
• A Japanese Candlestick Reversal Pattern – (see more candle reversal patterns here).
• A Double-bottom, Double-top or a head & shoulders pattern.
• A consolidation pattern such as a triangle or a channel (check out the free trial of this software).
• ANY technical indicator signals that you like to use (Moving Average Crossovers, MACD signals, Stochastics, etc…) You can also pick your favorite
• An automated forex trading robot (yes, they can be useful if you use them to provide trading signals, not to trade for you)

You can use ANY of the signals above (there are more that I haven't covered).

Here's how to use our FACT above:

AFTER a trend reversal signal (or consolidation breakout), wait for a fibonacci wave to form. You now have the beginning of a new trend that you can ride for a 2nd or a 3rd wave.

What To Do NOW

Open up your forex trading account & look at your forex charts:

• Use candlestick charts
• Look at several different currency pairs
• Look at several different timeframes
• Look for TWO & THREE Wave patterns (like in the images below)

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