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Classic patterns

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 a falling channel. What is the channel pattern? […]

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Classic patterns

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 pattern is a powerful pattern used in technical analysis. It is […]

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Classic patterns

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 is a bearish reversal pattern used in technical analysis. The […]

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Classic patterns

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 bearish pattern A triple top or […]

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Classic patterns

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

The Rectangle pattern is bullish or bearish depending on the direction of the breakout It 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 horizontal lines describing important support and resistance. Traders can successfully trade it by buying […]

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Classic patterns

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 Bottom chart pattern is used in technical analysis. […]

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Classic patterns

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 shoulders pattern. It is easy to spot the head and shoulders chart […]

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Classic patterns

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 pattern? Some traders use the pennant pattern as an entry pattern […]

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Classic patterns

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 on chart patterns, wedge patterns may or may […]

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Classic patterns

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 head and shoulders pattern can appear in all markets, all the time. It is […]