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Head And Shoulders Chart Pattern The Head and Shoulders pattern is very easy to spot and can be a caution for traders especially when the pattern occurs at the top end of a rally or its bearish counterpart, the inverse head, and shoulders that occurs at the trough of a downtrend. In the chart above, you can see the basic structure and the setup of the head and...

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Rectangle Pattern Up Trend The price is constrained by support and resistance levels in the Rectangle pattern. This means observing the pattern on a chart, and traders need to look for a price between the two horizontal lines. The Rectangle marks several highs and lows. These highs and lows indicate a period of consolidation. Also, there is indecision in the...

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Descending Triangle Pattern The descending triangle is a bearish pattern that is characterized by a descending upper trendline and a flat lower trendline that acts as support. This pattern indicates that sellers are more aggressive than buyers as the price continues to make lower highs. The pattern completes itself when the price breaks out of the triangle in the...

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Broadening Bottom Chart The Broadening Bottom chart contains a broadening pattern, in this case, a broadening bottom pattern because prices enter the pattern from above. There are three higher highs and four or five lower lows. Prices break below support and move downward enough to complete a profitable trade using either price target method.

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(Trend Line) As the name implies, trend lines are levels used in technical analysis that can be drawn along a trend to represent either support or resistance, depending on the direction of the trend. Think of them as the diagonal equivalent of horizontal support and resistance. Notice how shortly after breaking trend line resistance, the market came back to...

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Inverse Head and Shoulders Chart Pattern Inverse head and shoulders is a trend reversal chart pattern and are the opposite of the Head and Shoulders one. Theoretically, the height of the two shoulders must be the same, and the neckline – be horizontal. However, the shoulders are often not of the same height, or the neckline ascends or descends. The price...

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(Rising Wedge Pattern) The rising wedge (also known as the ascending wedge) pattern is a powerful consolidation price pattern formed when the price is bound between two rising trend lines. It is considered a bearish chart formation that can indicate reversal and continuation patterns – depending on location and trend bias. Regardless of where the rising wedge...

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Falling Wedge A falling wedge is always a bullish pattern. By definition, a falling wedge always follows a major rising trend and has 3 stages: major rising trend, correction, and continuation of a rising trend. This pattern is appropriate in denoting a bullish momentum in the market in the future.

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Descending Broadening Wedge Descending broadening wedge is a type of wedge pattern. A wedge is a structure or pattern with one thick end and one thin end. In the case of descending broadening wedge, the starting point will be a narrow end, and the ending point will be a thick end because it shows the expansion of the price wave.

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Falling Wedge Formation in 1H timeframe..!! In the case of an Upside Breakout, I am expecting a +10% Bullish Wave. Falling Wedge Formation The falling wedge is a graphic pattern of reversal of a downtrend in 68% of cases and continuation in 32% of cases. When the Falling Wedge occurs in a downtrend it is considered a reversal Falling Wedge or falling reversal...

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Bearish Flag Pattern Strategy, The bearish flag is a continuation chart pattern that resembles the shape of a flag and it consists of two basic price waves in technical analysis. The bearish flag pattern is the most widely used chart pattern in forex and Crypto trading. As the name suggests it forecasts a downtrend in price. Due to the characteristic of trend...

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The symmetrical triangle pattern is a continuation chart pattern like Ascending and Descending Triangle patterns. This pattern is characterized by two converging trend lines that connect a series of troughs and peaks. The trend lines should be converging to make an equal slope. This pattern indicates a phase of consolidation before the price breakout.

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This pattern is important because it helps to indicate the continuation of a bullish or bearish market. When the direction of the price channel is in the upward direction it is considered the Bullish Price Channel and when the face of the price channel is in the downward direction it is called Bearish Price Channel. Traders could buy a stock when its price breaks...

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in the previous educational post, I posted about Rising Wedge patterns and in this post, I have explained Falling Wedge Patterns. ( Falling Wedge is the opposite of Rising Wedge pattern; for every chart pattern there are opposite patterns excluding some.) Falling Wedges are Bullish Patterns and it generates a bullish signal, Falling wedge patterns forms with...

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An Adam and Eve (AE) double top consists of the first peak being a sharp pointed top "A" and the second peak being a soft and rounded top "n". Bulkowski (2005) considers the Adam and Eve double top to be a "poor performer" with an average maximum decline from the sell signal of 18%

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In the previous educational post, I posted about Rising Wedge patterns and in this post, I have explained Falling Wedge Patterns. ( Falling Wedge is the opposite of Rising Wedge pattern; for every chart pattern there are opposite patterns excluding some.) Falling Wedges are Bullish Patterns and it generates a bullish signal, Falling wedge patterns forms with...

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The rising wedge (also known as the ascending wedge) pattern is a powerful consolidation price pattern formed when the price is bound between two rising trend lines. It is considered a bearish chart formation that can indicate reversal and continuation patterns – depending on location and trend bias. Regardless of where the rising wedge appears, traders should...

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A falling wedge is always a bullish pattern. By definition, a falling wedge always follows a major rising trend and has 3 stages: major rising trend, correction, and continuation of a rising trend. This pattern is appropriate in denoting a bullish momentum in the market in the future.