Hammer Candlestick Pattern Explained
The hammer is the name used for a single candlestick chart pattern that is a bullish reversal signal. Its name comes from the fact that it visually looks like a hammer.
What Is A 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
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 Pennant
Chart Facts: Bear Pennant Example Here is an example of a bear pennant that formed on the Bitcoin chart during a downtrend in price. After the clear downtrend in the first half of January a bear pennant formed in the second half of January before the downtrend continued in the first week of February. Price … Read more
Bear Flag Pattern Explained
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
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.
Rounding Top
Rounding top pattern typically appears at the end of extended upward trends and may signify a significant reversal in long-term price movements. Traders often observe this formation after a prolonged period of rising prices, which leads to increased bullish sentiment. However, as the pattern develops, it indicates that this bullish momentum is waning. The pattern … Read more
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