PATTERNS

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TRADING CHART EBOOK

DOUBLE BOTTOM PATTERN

A double bottom is an extremely bullish technical reversal pattern that


forms after an asset reaches a low price two consecutive times with a
DOUBLE TOP PATTERN moderate support between the two lows. It is confirmed once the asset
price go above a resistance level equal to the high between the two
prior lows.

A double top is an extremely bearish technical reversal pattern that


forms after an asset reaches a high price two consecutive times with a
moderate decline between the two highs. It is confirmed once the
asset price falls below a support level equal to the low between the
two prior highs.
TRIPPLE TOP PATTERN
TRIPPLE BOTTOM PATTERN

A triple top is an extremely bearish technical reversal pattern that


forms after an asset reaches a high price three consecutive times with a A triple bottom is a bullish technical reversal pattern that forms after an
moderate decline between the three highs. It is confirmed once the asset reaches a low price three consecutive times with a moderate support
asset price falls below a support level equal to the low between the between the three lows. It is confirmed once the asset price go above a
three prior highs. resistance level equal to the high between the three prior lows
INVERSE HEAD & SHOULDER
HEAD & SHOULDER PATTERN

A head & shoulder pattern is a chart formation that appears as a An inverse head and shoulder is similar to the standard head and
baseline with three peaks, where the outside two are similar in height shoulder pattern, but inverted: with the head and shoulders top used to
and the middle is highest & breakout confirmed once asset breaks predict reversals in downtrends. the price falls to a trough and then
support level & it resembles with human head and shoulder shape rises; the price falls below the previous trough and then rises again;
that’s why it is called as head &shoulder finally, the price falls again but not as far as the second trough. Once the
final trough is made, the price heads upward & breaks resistance
Retest

FALLING WEDGE PATTERN


RISING WEDGE PATTERN

The falling wedge pattern is characterized by a chart pattern which


The rising wedge is a technical chart pattern used to identify possible
forms when the market makes lower lows and lower highs with a
trend reversals. The pattern appears as an upward sloping price chart
contracting range. When this pattern is found in a downward trend, it is
featuring two converging trend lines. It is usually accompanied by
considered a reversal pattern, breakout confirmed once it breaks
decreasing trading volume breakout confirmed once it break support
resistance trend line and goes upward direction
trend line goes downward
Rete

Th
is a continuation pattern that occurs when a price pauses
during a strong downtrend and temporarily bounces between
two parallel levels before the trend continues, breakout
confirmed once it break its support & goes in downward
direction.

BULLISH RECTANGLE

The bullish rectangle is a continuation patterns that occur when a price pauses
during a strong trend and temporarily bounces between two parallel levels
before the trend continues, breakout confirmed once it break its resistance &
goes in upward direction

BEARISH RECTANGLE
BULLISH FLAG

TRADING PSYCHOLOGICAL TIPS


The bullish flag formations are found in stocks with strong up trends and
 AVOID FEAR OF MISSING OUT
considered good continuation patterns. They are called bull flags because the
 MOVE ON FROM BAD DAYS
pattern resembles a flag on a pole. The pole is the result of a vertical rise in a
 DO NOT CARRY YESTERDAY’S BAGGAGE
chart & the flag results from a period of consolidation, breakout confirmed
 DON’T DO OVER-TRADING
once it breaks from upper side of flag
Breakout

Retest
Rete
st

BULLISH SYMMETRICAL TRIANGLE

BEARISH FLAG PATTERN


A bullish symmetrical triangle is a bullish continuation chart pattern.
The bearish flag is an upside down version of the bull flag. It has The pattern is formed by two converging trend lines that are
the same structure as the bull flag but inverted. The flag pole symmetrical in relation to the horizontal line. The top line is a bearish
forms on an almost vertical panic price drop as bulls get trend line creating the resistance, breakout confirmed once chart
blindsided from the sellers, then a bounce that has parallel upper break resistance & goes upward direction
and lower trend lines, which form the flag, breakout confirmed
once chart break from lower trend line.
Retest

BEARISH SYMMETRICAL TRIANGLE

A bearish symmetrical triangle is bearish continuation chart pattern.


The pattern is formed by two converging trend lines that are
symmetrical in relation to the horizontal line, lower support line is
bullish trend line, breakout confirmed once it break support & goes in
downward direction

ASCENDING TRIANGLE Rete


Breakout
It is formed as a right-angled triangle with a resistance and a trend DESCENDING TRIANGLE
line of higher lows, resistance does not allow the chart to move more
upward, higher lows show that the buying pressure has increased
pattern clearly indicates that the market moves higher as the higher It is formed in the downtrend and indicates the continuation of the
lows are formed heading toward the resistance line. it can break downtrend. formed as a downward sloping triangle with support and
from any direction a slope of lower highs support does not allow the chart to move more
downward, lower highs show that the selling pressure has increased
pattern clearly indicates that the market moving lower as the lower
highs are formed heading toward the support line. It can break from
any direction.

Rete

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