This Hidden Forex Chart Pattern Made Traders 3X Returns – Here's How

Anurag Kumar

29/04/2025

15Min read

Traders are constantly chasing the next big signal, the next breakthrough strategy, or the next magic indicator in this ever evolving world of forex trading. But the real profits are hidden right inside the charts.
A simple forex chart pattern has made traders 3X returns with minimal risk. This pattern is not flashy as candlestick hacks or algorithmic bots rather it relies on what has worked consistently for decades that is the price action and technical analysis.
Why it works, and how you can apply it to both forex and binary trading using the best trading platforms in 2025, let's deep dive into the secret.

The Power of Pattern Recognition in Forex Trading

Let’s quickly recap why trading chart patterns matter so much, before we get to the star of the show.
Markets, though influenced by news and macro trends, generally move in predictable ways because human behavior is predictable. Greed, fear, FOMO, panic these emotions show up on the charts. Technical analysis isn’t magic, it’s about reading chart emotions and acting before the crowd does.
That’s why patterns repeat and that is why those who recognize them early, consistently beat those who don’t.

The Hidden Pattern: The “Coiled Breakout”

You won't find this pattern in every trading book but pros know it well. It is called as coiled breakout or volatility squeeze. It occurs when price consolidates tightly over time, forming a spring shape.
How It Looks:
- The chart shows lower highs and higher lows, squeezing into a tight wedge.
- Volatility dries up. Candles get smaller.
- Indicators like Bollinger Bands contract heavily.
- Suddenly, volume spikes and the price breaks out aggressively often giving a 2x or 3x risk to reward ratio.
This is where smart money concept enters into.

Why It Works: The Psychology Behind It

Most traders lose not because they get impatient or panic, it's not like they can't analyze charts. This pattern preys on that.
In a coiled breakout, the market looks boring as volume is low. New traders exit soon. But what’s really happening is accumulation or distribution by large players. Once their orders are filled, the price bursts leaving behind those who weren’t paying attention.
Think of it like this:
- Retail traders avoid boring setups.
- Experienced traders wait for the calm before the storm.
- Those who master patience and enter right at the breakout point ride the wave that others miss.
This is how 3x returns are made in quiet, not in chaos.

How to Trade It Using Binary or Forex Trading Platforms

This setup works both ways, whether you're into binary trading or traditional forex trading.
Step by Step Strategy:
1. Identify the Pattern
  Use the 1 hr or 4 hr timeframe. Look for a tight triangle or wedge with decreasing volume.
2. Use Technical Indicators Wisely
  Apply Bollinger Bands or the ATR (Average True Range) to spot low volatility zones. Better squeeze can be identified by narrower bands.
3. Mark Key Breakout Zones
  Set alerts slightly above and below the consolidation range.
4. Wait for the Breakout
  Let the price close outside the range with volume confirmation, then only jump in.
5. Enter With Risk Control
  Use a tight stop just below (or above) the squeeze. If the breakout is valid, price should not return inside.
6. Set Targets Based on Range
  Measure the height of the squeeze range and project that from the breakout point. This gives you your 2x to 3x target.

Best Trading Platforms to Spot and Trade the Pattern

To consistently catch this pattern, you need a platform that offers:
- Real time charting tools
- Custom indicators like Bollinger Bands or ATR
- Mobile access for on the go alerts
- Fast execution for breakout trades
- Support for both binary and forex trading
Some of the best trading platforms in 2025 for this strategy include Exness, TradingView (for analysis), and regulated brokers like Binary Funding Account for binary setups.

Real Life Example: EUR/USD Breakout in March 2025

In March 2025, EUR/USD entered a tight consolidation near a psychological level of 1.0900. The pattern continued for days. Bollinger Bands squeezed. Retail traders got bored and left.
But on March 18th, during low volume Asian hours, price spiked with volume and broke out. Traders who entered right at the 1.0910 breakout saw a clean run to 1.0975 in under 12 hours which is 3.2x risk to reward setup.
The key is simple, it's patience, pattern recognition, and a reliable platform.

Mistakes to Avoid When Trading This Pattern

This pattern is only profitable if traded with discipline, even though it’s powerful..
Common Pitfalls:
- Jumping too early: Wait for a confirmed breakout candle.
- Forgetting stop loss: It’s still a probability game. Always manage risk.
- Ignoring news events: A Fed announcement or major data release can invalidate setups instantly.
- Trading too large: Stick to proper position sizing, especially in binary trading, where outcomes are fixed.

The Takeaway: Simple Still Wins

It’s easy to forget that the most reliable strategies are often the simplest, in a world filled with AI bots, signal groups, and hype. This hidden chart pattern doesn’t require complex algorithms or insider tips. Just a sharp eye, a steady hand, and a solid technical analysis is what it demands.
By mastering this setup and practicing it across demo and real accounts, you’ll train your brain to recognize what most traders misses out.

Final Thoughts

Human behavior doesn’t evolve but markets will always. As long as fear and greed exist, chart patterns like the coiled breakout will continue to deliver results. If you combine patience, discipline, and the right trading platform, 3x returns won’t be a dream they’ll be a system.
Also Read: Fed Meeting Shockwaves: What Every Forex Trader Must Know Before the Next US Market Open

Frequently Asked Questions

Disclaimer

-- It is advised that engaging in financial exchanges carries high risks, and investments and trading activities are subject to market fluctuations. We strongly recommend thoroughly reviewing all information on our website before making any decisions. It is important to note that past performance does not guarantee future results. Please be aware that consulting fees are nonrefundable. Our recommendations are based on technical analysis charts. However, it is essential to understand that our services do not provide a guarantee of profitability or loss.

This Hidden Forex Chart Pattern Made Traders 3X Returns – Here's How

The Power of Pattern Recognition in Forex Trading

The Hidden Pattern: The “Coiled Breakout”

How It Looks:

Why It Works: The Psychology Behind It

Think of it like this:

How to Trade It Using Binary or Forex Trading Platforms

Step by Step Strategy:

Identify the Pattern

Use Technical Indicators Wisely

Mark Key Breakout Zones

Wait for the Breakout

Enter With Risk Control