A forex chart graphically depicts the historical behavior, across varying time frames, of the relative price movement between currency pairs. Technical analysts and day traders will look at such charts in order to identify trends and various patterns that can signal reversals, continuations, entry points, and exits.
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
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
Bull flag pattern chart facts: The bull flag is a continuation pattern of the previous uptrend. A bull flag chart pattern occurs after an uptrend out of a previous price base. The ‘pole’ is represented by the previous uptrend in price before a price consolidation. The ‘flag’ is a rectangular descending price range after the uptrend … Read more
The diamond pattern is a price action formation that is created on a chart by buyers and sellers. It is a lesser-known chart pattern to technical traders than many of the more popular patterns. This formation is a less frequent and more uncommon reversal pattern on a chart than pennants and flags. It can happen … Read more
In technical analysis the triple bottom pattern can be a possible signal for a reversal higher in price. This pattern is formed when price action finds support inside a price zone three consecutive and separate times. This type of price behavior can give clues that there are no sellers at lower prices below that support zone to … Read more
The inverted hammer pattern is a type of candlestick located at the end of downtrend and is used by technical analysts as a bullish reversal signal from the lows. The inverted hammer candle visually looks like a hammer turned upside down with its handle pointing up. It is defined as a one-day bullish reversal pattern. … Read more
Chart Facts: The Double Bottom Chart pattern is a reversal pattern that is bullish. This pattern is created when a key price support level on a chart is tested twice with a rally between the two support level tests. A double bottom chart pattern happens at the end of a downtrend that has likely gone on … Read more
How many types of chart patterns are there? There are three main types of chart patterns which are used in technical analysis: traditional chart patterns, harmonic patterns, and candlestick patterns. Traditional Chart Patterns Traditional chart patterns identify the behavior of traders and investors on a chart based on support and resistance trend lines. The purpose of … Read more
A wedge pattern generally forms and moves in the opposite direction of the longer-term trend on a chart and shows a short-term reversal that usually fails and the previous trend resumes.