Trading pattern. Long-range direction of a security or commodity futures price, charted by drawing one line connecting the highest prices the security has reached and another line connecting the lowest prices at which the security has traded over the same period.

How do you identify trade patterns?

Trading using price action​ can help you to identify shifts between rising and falling trends. Traders look for price patterns that signal changes in the market’s trend, and then execute trades based on these signals. Trading patterns can also be used to forecast market reversals and trend continuations.

What causes trade patterns?

Patterns of trade evolve over time as countries develop and build new comparative advantage in both goods and services. One key change in global trade is the rise in South-South trade.