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Candlestick Patterns Explained

candlestick chart pattern

A Candlestick Patterns is a type of chart used in trading as a visual representation of past and current price action in specified timeframes. A candlestick consists of the body with an upper or lower wick or shadow. Candlesticks are created using the opening and closing prices along with the trading range of the candlestick period. How do you … Read more

What Is A Descending Triangle Pattern?

Descending Triangle Pattern

Descending triangle chart patterns The opposing of the ascending triangle is the descending triangle. The upper side of the falling triangle slopes downward as the price makes lower highs, with the bottom of the triangle typically being a flat level of support. This pattern may indicate that support is eroding and that a downward breakout … Read more

Inverted Cup and Handle Chart Pattern

Inverted Cup and Handle Chart Pattern

The inverted cup with handle is a reversal pattern and momentum sell short signal as it breaks down out of the ‘handle’ in the formation. It is usually a topping pattern after a strong move to the upside signaling the end of an uptrend on a chart. An inverted cup and handle chart pattern ideally … Read more

Bear Flag Pattern Explained

Bear Flag

Bear Flag Pattern Explained; Two drops separated by a brief period of consolidating retracement constitute a bear flag, a bearish chart pattern. The flagpole develops after an almost vertical panic price collapse when bulls are caught off guard by sellers, followed by a bounce with parallel upper and lower trendlines that creates the flag. The … Read more

Identifying The Head and Shoulders Pattern

The Head and Shoulders Chart Pattern is one of the most popular and bearish patterns in technical analysis. It defines three attempts to make highs and then trend but fail, it precedes many major corrections and bear markets. Chart Facts: The below $GS chart shows a Head and Shoulders pattern that was very fast to … Read more

Top 10 Chart Patterns Every Trader Should Know

Top 10 Chart Patterns Every Trader Should Know

Chart patterns are specific price formations on a chart that predict future price movements. As technical analysis is based on the assumption that history repeats itself, popular chart patterns have shown that a specific price movement is following a particular formation of price (chart pattern) with high probability. Therefore, chart patterns are grouped into (1) continuation patterns – that signal a continuation in the underlying trend, and (2) reversal patterns – that signal reversal of the underlying trend.

How To Trade The Double Top Pattern

The Double Top Chart pattern is a reversal pattern that is bearish. This pattern is created when a key price resistance level on a chart is tested twice with a pullback between the two high prices at resistance price level tests. Chart Facts: A double top chart pattern happens at the end of an uptrend that … Read more