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

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

How To Trade A Symmetrical Triangle Pattern

Symmetrical Triangle Pattern Chart Facts: The symmetrical triangle is a neutral chart pattern that usually forms during a trend as a continuation pattern of the existing trend. Sometimes a symmetrical triangle pattern will form as a reversal pattern as a trend comes to an end, but they are usually continuation patterns of an existing trend … Read more

Ascending Triangle Pattern

Chart Facts: • The ascending triangle is a bullish chart pattern that usually forms during an uptrend as a continuation pattern.• Sometimes an ascending triangle pattern will form as a reversal pattern as a downtrend comes to an end, but they are usually continuation patterns in an uptrend.• Regardless of their location during a trend … Read more

Cup and Handle Pattern

The cup and handle pattern is a bullish continuation pattern and momentum buy signal as it breaks out of the ‘handle’ in the formation. It was originally intended to be used with high growth stocks within the ‘CAN SLIM’ system. I cup and handle chart pattern ideally takes place early in bull markets when the stock indexes are … Read more

Bullish Pennant Pattern

A bullish pennant chart pattern can be a powerful bullish chart pattern that is found during strong bull markets that is very similar to the bull flag. They are rarer than a bull flag. The price compression in the pennant can lead to explosive moves once there is a breakout. Many times, these patterns are formed in … Read more

error: Content is protected !!