Chart patterns are unique formations formed by changes in the price of securities on the price chart. They are the basis of technical analysis.
There are several types of patterns: classic patterns, candlestick patterns and harmonic patterns. Each type have its own specificities. Identify patterns by lines that connect common price points (such as closing prices or high or low points) within a specific time period.
Technical analysts and chart experts seek to identify patterns to predict the future direction of security prices. These patterns can be as simple as a trend line or as complex as a double head and shoulder pattern.
The Long Line candlestick pattern is a 1-bar pattern. It simply consists of a long body candle. It can be bearish or bullish. What is a long line candle? Candlesticks provide different visual hints on the trading charts for a better and easy understanding of the price action. The candlestick chart patterns are far more […]
The channel pattern is a technical analysis pattern that capitalizes on the trending tendencies of the market. It is also known as price channel. This pattern appears in the market when price oscillates between two lines with the same slope. It can be a rising channel or a falling channel. What is the channel pattern? […]
The Flag pattern is a continuation pattern. Its formation is a strong sign of consolidation (price stops to trend for a while to build back momentum). It is identifiable with 3 components: the flagpole, the flag (the consolidation part) and the continuation. The flag pattern is a powerful pattern used in technical analysis. It is […]
The Alternate Bat pattern is popular for incorporating the 1.13XA retracement. Firstly, an important factor is the B point retracement that must be 0.382 retracements or it must be less of the XA leg. Furthermore, it only utilizes a 2 or more BC projections. The AB = CD pattern within the alternate bat pattern always […]
The stalled candlestick pattern is a three-bar pattern that predicts an upcoming reversal of the trend in the market. Although it is usually a bearish reversal pattern, yet there are strong possibilities that a bullish variant of the stalled pattern may also appear during a downtrend in the market. The stalled candlestick pattern is a […]
The modified Hikkake candlestick pattern is the more specific and upgraded version of the basic Hikkake pattern. The difference with the normal pattern is that the “context bar” is used prior to the inside price bar. It consists of a context bar, an inside bar, a fake move, followed by a move above or below […]
The Short Line candlestick pattern is a 1-bar very simple to understand pattern. It simply consists in a candle with a short body. There are various kind of specific variations of the short line pattern (doji, hammer, hanging man, shooting star). Let’s go in-depth about what the short line candlestick pattern is. What is a […]
High wave is a 1-bar candlestick pattern that has very long upper and lower shadows and a small real body. It shows indecision in the market. Statistics to prove if the High Wave pattern really works A lot of candlestick traders don’t fully realize that each candlestick pattern tells a story about the market. This […]
A stick sandwich is a 3-bar pattern. The closing prices of the two candlesticks that surround the opposite colored candlestick have to be the same. Statistics to prove if the Stick Sandwich pattern really works What is the Stick Sandwich candlestick pattern? A stick sandwich is a technical trading candlestick pattern where three candlesticks appear […]
The on-neck candlestick pattern is a 2-bar continuation pattern. Closing prices of the second candle is nearly the same than first candle high/low forming a horizontal neckline. Statistics to prove if the On-neck pattern really works The on-neck candlestick pattern is a bearish continuation pattern that appears during a downtrend in the market. It consists […]
