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    Chart Patterns

    Uploaded by

    op gamer

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    © All Rights Reserved
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    Chart Patterns

    Uploaded by

    op gamer
    14 views11 pages

    Original Title

    Chart patterns

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
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    14 views11 pages

    Chart Patterns

    Uploaded by

    op gamer

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 11

    1.

    Ascending triangle

    The ascending triangle is a bullish ‘continuation’ pattern that signifies a


    breakout is likely where the triangle lines converge. To draw this
    pattern, you need to place a horizontal line (the resistance line) on the
    resistance points and draw an ascending line (the uptrend line) along
    the support points.
    2. Descending triangle

    Unlike ascending triangles, the descending triangle represents a bearish


    market downtrend. The support line is horizontal, and the resistance
    line is descending, signifying the possibility of a downward breakout.
    3. Symmetrical triangle

    For symmetrical triangles, two trend lines start to meet which signifies a
    breakout in either direction. The support line is drawn with an upward
    trend, and the resistance line is drawn with a downward trend. Even
    though the breakout can happen in either direction, it often follows
    the general trend of the market.

    Ascending triangle VS Descending triangle VS Symmetrical triangle


    4. Pennant: Pennants are represented by two lines that meet at a set point.
    They are often formed after strong upward or downward moves
    where traders pause and the price consolidates, before the trend
    continues in the same direction.

    5. Flag: The flag chart pattern is shaped as a sloping rectangle, where the
    support and resistance lines run parallel until there is a breakout. The
    breakout is usually the opposite direction of the trendlines, meaning
    this is a reversal pattern.
    6. Wedge

    A wedge represents a tightening price movement between the support and


    resistance lines, this can be either a rising wedge or a falling wedge.
    Unlike the triangle, the wedge doesn’t have a horizontal trend line and
    is characterised by either two upward trend lines or two downward
    trend lines.

    For a downward wedge it is thought that the price will break through the
    resistance and for an upward wedge, the price is hypothesised to
    break through the support. This means the wedge is a reversal pattern
    as the breakout is opposite to the general trend.
    7. Double bottom

    A double bottom looks similar to the letter W and indicates when the price
    has made two unsuccessful attempts at breaking through the support
    level. It is a reversal pattern as it highlights a trend reversal. After
    unsuccessfully breaking through the support twice, the market price
    shifts towards an uptrend.
    8. Double top

    Opposite to a double bottom, a double top looks much like the letter M.
    The trend enters a reversal phase after failing to break through the
    resistance level twice. The trend then follows back to the support
    threshold and starts a downward trend breaking through the support
    line.
    9. Head and shoulders

    The head and shoulders pattern tries to predict a bull to bear market
    reversal. Characterised by a large peak with two smaller peaks either
    side, all three levels fall back to the same support level. The trend is
    then likely to breakout in a downward motion.
    10. Rounding bottom

    A rounding bottom or cup usually indicates a bullish upward trend. Traders


    can buy at the middle of the U shape, capitalising on the bullish trend
    that follows as it breaks through the resistance levels.
    11. Cup and handle

    The cup and handle is a well-known continuation pattern that signals a


    bullish market trend. It is the same as the above rounding bottom, but
    features a handle after the rounding bottom. The handle resembles a
    flag or pennant, and once completed can see the market breakout in a
    bullish upwards trend.
    Some extra cheat sheets for your trading!

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