Classic patterns

Patterns help you better predict and understand what the markets will do. Learn about classic patterns so you can get and edge in the market and profit from your trading.

Channel Pattern: What is it? How to trade it?

Channel Pattern: What is it? How to trade it?

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...

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Flag Pattern: What is it? How to trade it?

Flag Pattern: What is it? How to trade it?

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...

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Broadening Top Pattern: Full Guide

Broadening Top Pattern: Full Guide

The broadening top pattern is a bearish reversal pattern.It's tougher to trade than other classical patterns as lows and highs get taken out one by one.It can also be called the "megaphone pattern". What is the broadening top pattern?  The broadening top pattern...

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Triple Top Pattern: What is it? How to trade it?

Triple Top Pattern: What is it? How to trade it?

The triple top pattern is a bearish reversal pattern.It's created when price bounces off resistance 3 time at similar levels.It's a sign the sellers are coming in the market to avoid the security price to shoot higher. What is a Triple Top pattern? Triple top is a...

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Rectangle Pattern: What is it? How to trade it?

Rectangle Pattern: What is it? How to trade it?

The Rectangle pattern is bullish or bearish depending on the direction of the breakoutIt forms when price oscillates between a horizontal support and resistance. What is the Rectangle pattern? The rectangle formation is a classical technical analysis pattern shown by...

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Triple Bottom Pattern: Definition & Strategy

Triple Bottom Pattern: Definition & Strategy

The triple bottom pattern is a bullish reversal pattern. It's created when price bounces off support 3 time at similar levels.It's a sign the buyers are coming in the market to avoid the security price to drop lower. What is the Triple Bottom pattern? The Triple...

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Head and Shoulders Pattern: Full Guide [2020]

Head and Shoulders Pattern: Full Guide [2020]

Recognizing chart patterns is one of the most reliable techniques for trading the market. There are various chart formations that traders can observe and apply to their arsenal. Today, we will go through one of the most dependable chart patterns: the head and...

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Bullish & Bearish Pennant Pattern: Definition

Bullish & Bearish Pennant Pattern: Definition

The pennant pattern is a continuation pattern.The pennant shows a time of consolidation before to (likely) continue of the same trend with a breakout.The consolidation period should have lower volume and the breakouts should occur on higher volume. What is the Pennant...

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Falling Wedge Pattern: Ultimate Guide [2020]

Falling Wedge Pattern: Ultimate Guide [2020]

Out of all the chart patterns that exist in a bullish market, the falling wedge is an important pattern for new traders. It is a very extreme bullish pattern for all instruments in any market in any trend. Depending on the educator and educational material you’ve read...

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Inverse Head and Shoulders Pattern: Full Guide

Inverse Head and Shoulders Pattern: Full Guide

Traders apply charts when studying various patterns in market trends, including the inverse head and shoulders pattern. This pattern is characterized by three troughs (both the upward head and shoulders have peaks), with the middle trough being the deepest. An inverse...

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Cup and Handle Pattern: Definition & Strategy

Cup and Handle Pattern: Definition & Strategy

Chart patterns usually occur when the cost of an asset goes towards a direction that a common shape, like a rectangle, triangle, head and shoulders, or in this case, a cup and handle pattern. These patterns are great ways to trade visually. They offer a logical point...

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How to trade a Rising Wedge classical pattern?

How to trade a Rising Wedge classical pattern?

A rising wedge forms when two converging upward slope trendlines encapsulate the priceIt is a bearish pattern What is a Rising Wedge? Rising wedge is a popular reversal pattern that can easily be predicted in nature. It offers clues to traders on the direction and...

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Ascending Triangle Pattern: Full Guide [2020]

Ascending Triangle Pattern: Full Guide [2020]

The ascending triangle pattern is a continuation pattern. Price typically breakout in the direction of the prevailing trend.It forms between a horizontal resistance and an upward slope trendlineIt helps traders frame their trade, giving an entry, stop and target What...

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How to trade a Double Top pattern?

How to trade a Double Top pattern?

The double top looks like the letter "M"Price touches twice a resistance levelThe double top pattern follows an uptrendIt signals the reversal and the beginning of a potential downtrend What is the Double Top pattern? A double top is a very bearish technical reversal...

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How to trade a Symmetrical Triangle pattern?

How to trade a Symmetrical Triangle pattern?

A symmetrical triangles forms when the price of a security consolidates between two trend lines with similar slopesIt can break in both directions, up or downThe symmetrical triangle helps frame your entry, stop and target What is the Symmetrical Triangle pattern?...

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How to trade the Double Bottom pattern?

How to trade the Double Bottom pattern?

The double bottom looks like the letter "W"Price touches twice a support levelThe double bottom pattern follows a downtrendIt signals the reversal and the beginning of a potential uptrend What is a Double Bottom classical pattern? A double bottom pattern is a classic...

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How to trade the Descending Triangle pattern?

How to trade the Descending Triangle pattern?

A descending triangle forms with an horizontal resistance and a descending trendline from the swing highsTraders can use the descending triangle pattern as a signal to enter a short position at breakdownThe opposite technical pattern is the ascending triangle What is...

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