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Analyzing the Rising Wedge (Bearish) Pattern in Stock Trading
Dive into the intricacies of the Rising Wedge (Bearish) Pattern in our latest analysis. Uncover how this key formation signals bearish reversals in the stock market, learn effective trading strategies, and explore the psychological aspects of pattern recognition. Essential for traders seeking to navigate the complexities of bearish trends with confidence and strategic acumen Continue reading...
Analyzing the Triple Tops (Bearish) Pattern in Stock Trading
Explore the nuances of the Triple Tops (Bearish) Pattern in our comprehensive guide. Uncover how this critical pattern signals a shift in market trends, learn effective trading strategies, and delve into the psychological aspects of trading, from pattern recognition to emotional management. Continue reading...
Exploring the Symmetrical Triangle Top (Bearish) Pattern in Stock Trading
Dive into the world of stock trading with our insightful analysis of the Symmetrical Triangle Top (Bearish) Pattern. Learn how this key pattern forms in directionless markets and signals significant price movements. Discover effective breakout strategies, how to calculate pattern height for exits, and the crucial role of psychology in pattern trading. Continue reading...
Understanding the Symmetrical Triangle Bottom (Bearish) Pattern in Stock Trading
Delve into the intricacies of the Symmetrical Triangle Bottom Pattern in bearish stock trading. This comprehensive guide explores how this pattern forms in directionless markets, signaling potential downtrends. Learn about effective breakout strategies, calculating target prices, and the critical role of psychology in pattern trading, from cognitive processes to managing emotional responses and risk assessment. Continue reading...
Decoding the Descending Triangle (Bearish) Pattern in Stock Trading
Unlock the secrets of bearish stock trading with our in-depth exploration of the Descending Triangle Pattern. Discover how this pattern forms in directionless markets, its implications for trading strategies, and the crucial role it plays in predicting market movements. Continue reading...
Analyzing the Ascending Triangle (Bearish) Pattern in Stock Trading
Dive into the intricate world of stock trading with our comprehensive analysis of the Ascending Triangle (Bearish) Pattern and the innovative Real-Time Patterns (RTP) tool by Tickeron. Learn how this pattern signals potential market shifts and discover effective trading strategies for bearish trends. Understand the psychological aspects of pattern trading, from cognitive recognition to emotional management. Continue reading...
Three Falling Peaks Pattern: Bearish Market Analysis
Delve into the world of stock trading with our in-depth analysis of the Three Falling Peaks (Bearish) Pattern. Uncover how this distinctive pattern forms, signals potential market reversals, and guides effective trading strategies. Gain insights into the psychological underpinnings of pattern trading, from cognitive recognition to managing emotional responses, and master the art of balancing risk and reward. Continue reading...
Analyzing the Rectangle Top (Bearish) Pattern in Stock Trading
Navigate the complexities of bearish stock trading with our in-depth analysis of the Rectangle Top Pattern. Learn how this crucial pattern forms in range-bound markets, signaling potential downtrends, and discover effective trading strategies to capitalize on these movements. Uncover the psychological underpinnings of pattern trading, from cognitive pattern recognition to emotional responses, and master the art of balancing risk and reward in the volatile stock market. Continue reading...
Demystifying the Rectangle Bottom (Bearish) Pattern in Stock Trading
Unlock the secrets of the Rectangle Bottom (Bearish) Pattern in stock trading with our comprehensive guide. Explore how this key pattern forms, its significance in a directionless market, and effective trading strategies for capitalizing on bearish trends. Delve into the psychological aspects of pattern trading, from anticipation and cognitive processes to managing emotional responses and risk. This article is an essential read for traders looking to enhance their understanding of market dynamics and refine their trading decisions in volatile markets Continue reading...
Unraveling the Falling Pennant (Bearish) Pattern in Stock Trading
Dive into the world of technical stock trading with our comprehensive analysis of the Falling Pennant (Bearish) Pattern. Discover how this key pattern signals impending market trends and learn to leverage it for successful trading strategies. Gain insights into the psychological aspects of pattern trading, including cognitive recognition, emotional responses, and risk management. Continue reading...
Understanding the Head-and-Shoulders Top (Bearish) Pattern: A Comprehensive Guide
Unlock the secrets of the Head-and-Shoulders Top pattern, a pivotal bearish market reversal signal. Dive into our comprehensive analysis of this key trading indicator, its psychological underpinnings, and its practical implications. Learn how to leverage Tickeron's advanced AI technology for superior pattern recognition and strategic trading insights in fluctuating stock markets Continue reading...
Deciphering the Falling Flag (Bearish) Pattern in Stock Trading
This pattern often forms when there's a strong anticipation of a continued downtrend in the market. It indicates a growing concern among investors about an impending downtrend, reflecting a pause in the selling pressure before the bearish trend resumes. Continue reading...
Understanding the Dead Cat Bounce (Bearish) Pattern in Stock Trading: A Psychological and Strategic Perspective
Venture into the realm of stock market strategies with our deep dive into the Dead Cat Bounce pattern – a crucial bearish indicator in trading. Uncover the secrets behind its formation, how to spot its confirmation moves, and what it signifies for market trends. Delve into the psychological aspects influencing traders' decisions, from pattern recognition to emotional responses, and learn how to effectively balance risk and reward in the volatile world of stock trading. This article is a must-read for traders seeking to enhance their understanding and navigate the complexities of bearish market trends with confidence Continue reading...
Understanding the Inverted Cup-and-Handle Pattern: A Guide for Traders
Unlock the secrets of the Inverted Cup-and-Handle pattern in trading! Delve into our insightful article that explores this bearish signal, offering strategic approaches and psychological insights. Learn how to leverage this pattern for informed trading decisions and risk management. Perfect for traders looking to understand market dynamics and capitalize on trends. Powered by Tickeron's advanced AI analysis. Continue reading...
Deciphering the Broadening Wedge Descending (Bearish) Pattern: A Blend of Market Psychology and Strategic Trading
Dive into the world of stock trading with our insightful article on the Broadening Wedge Descending (Bearish) Pattern. Discover the intricacies of this unique pattern, how it shapes market trends, and the strategic trading approaches it entails. Unravel the psychology behind pattern trading, and learn how to leverage this knowledge for better risk management and informed decision-making. Perfect for both novice and seasoned traders, this article is your key to mastering one of the most intriguing aspects of the stock market! Continue reading...
Understanding the Broadening Wedge Ascending (Bearish) Pattern in the Context of Psychological Dynamics in Pattern Trading
Unlock the Secrets of Trading Psychology: Dive into the world of the Broadening Wedge Ascending (Bearish) Pattern in stock trading. Discover how psychological factors like anticipation, cognitive abilities, and emotional responses play a crucial role in shaping trading strategies and outcomes in the ever-changing stock market landscape. A must-read for traders aiming to master the art of pattern trading! Continue reading...
Mastering the Broadening Top (Bearish) Pattern in Stock Trading
Unlock the secrets of the Broadening Top (Bearish) Pattern in stock trading. Dive into our detailed guide to understand this complex pattern, its significance in volatile markets, and effective trading strategies to harness its potential for your investment success. Continue reading...
Understanding the Broadening Bottom (Bearish) Pattern in Stock Trading
Unlock the secrets of the Broadening Bottom (Bearish) Pattern in stock trading. Get ahead with essential strategies, expert insights, and the cutting-edge technology of Tickeron's RTP tool. Dive into the world of pattern trading and elevate your market understanding today! Continue reading...
The Rising Wedge Pattern: A Bullish Signal in a Directionless Market
Unlock the secrets of the stock market with Tickeron's Real Time Patterns (RTP). Experience the power of AI in identifying lucrative trading patterns and making data-driven decisions. Discover a tool that adapts to your trading style and empowers you with confidence ratings and backtesting insights. Join the new era of AI-backed stock trading and redefine your investing strategy with Tickeron's innovative platform. Continue reading...
The Falling Wedge Pattern: A Bullish Signal in a Seemingly Bearish Formation
Unlock the Power of AI in Stock Trading: Explore how Tickeron's Real Time Patterns (RTP) transforms your trading strategy with advanced AI analysis, customizable features, and real-time market insights. Elevate your trading experience with RTP's innovative pattern discovery and confidence ratings Continue reading...
Understanding the Triple Bottom (Bullish) Pattern in Stock Trading
Discover the game-changing tool for stock traders: Tickeron's Real Time Patterns (RTP). Dive into a world of AI-driven analysis, effortless pattern discovery, and personalized trading experiences. Whether you're a beginner or a pro, RTP is your key to unlocking stock market success with confidence and ease. Continue reading...
Understanding the Symmetrical Triangle Top (Bullish) Pattern in Stock Trading
Unlock the power of AI in stock trading with Tickeron's Real Time Patterns (RTP). Dive into the world of advanced pattern recognition, customizable strategies, and insightful confidence ratings to elevate your trading game. Join the era of informed, data-driven investment decisions Continue reading...
The Symmetrical Triangle Bottom (Bullish) Pattern in Stock Trading
Explore the cutting-edge of stock trading with Tickeron's Real Time Patterns. Dive into AI-driven insights, effortless pattern identification, and customizable trading strategies. Uncover the power of confidence ratings and backtesting, redefining the way you trade in today's dynamic market. Continue reading...
Understanding the Descending Triangle (Bullish) Pattern in Trading
Unlock the secrets of the Ascending Triangle (Bullish) Pattern in stock trading. Dive into a detailed exploration of its formation, the psychology behind pattern trading, and strategies for maximizing profits. Learn how Tickeron's RTP tool revolutionizes trading with AI insights and customizable options, empowering investors to navigate the dynamic stock market confidently. Continue reading...
The Three Rising Valleys (Bullish) Pattern: A Signal for Uptrend in Trading
Uncover the secrets of the Three Rising Valleys (Bullish) Pattern in our comprehensive article. Delve into the intricacies of this bullish signal, its psychological impacts on trading, and effective strategies for capitalizing on market trends. Plus, explore Tickeron's RTP tool for advanced, AI-driven market insights. Continue reading...
The Rectangle Top (Bullish) Pattern in Trading: A Comprehensive Analysis
Unlock the secrets of the Rectangle Top (Bullish) Pattern in stock trading! Explore how this pattern, formed in range-bound markets, guides traders towards profitable breakout strategies. Dive into the psychological aspects, from anticipation to decision-making, and learn how Tickeron's RTP tool transforms pattern trading with AI-driven analysis and confidence ratings. Perfect for both new and seasoned traders, this article is your key to mastering the Rectangle Top Pattern and navigating stock market volatility with expertise. Continue reading...
The Rectangle Bottom (Bullish) Pattern: A Guide for Traders
Unlock the secrets of the Rectangle Bottom (Bullish) Pattern in stock trading! Dive into our in-depth article exploring this key pattern, its strategic applications, and how Tickeron's Real Time Patterns (RTP) tool transforms your trading experience with AI-driven analysis, real-time market insights, and customizable options. Perfect for both novice and seasoned traders seeking to elevate their market strategies. Continue reading...
Decoding the Rising Pennant (Bullish) Pattern: A Strategic Guide for Traders
Explore the world of bullish trading with our in-depth analysis of the Rising Pennant Pattern. Unravel the dynamics of this key pattern and learn how to capitalize on its potential for explosive uptrends. Get ready to elevate your trading strategies with expert insights and psychological perspectives! Continue reading...
Decoding the Head-and-Shoulders Bottom Pattern: A Bullish Indicator in Trading
Discover the power of the Head-and-Shoulders Bottom pattern in transforming bearish trends into bullish opportunities. Unravel the intricacies of this pivotal reversal signal in our latest guide, where we delve into identifying, trading, and mastering this pattern for effective market strategy. Stay ahead in the trading game with our expert insights on this key bullish indicator! Continue reading...
Understanding the Rising Flag (Bullish) Pattern in Stock Trading
Discover the art of trading with the Rising Flag (Bullish) Pattern in our latest article. Learn how this pattern signals a continuation of bullish trends, delve into effective trading strategies, and explore the cognitive and emotional aspects of pattern recognition in the stock market. Essential reading for traders aiming to harness the power of technical analysis for successful investments Continue reading...
The Cup-and-Handle Pattern: A Beacon for Bullish Traders
Discover the secrets of the Cup-and-Handle pattern in stock trading! Unveil how this powerful bullish indicator can transform your trading strategy, enhanced by Tickeron's Real Time Patterns (RTP) tool for smarter, data-driven investment decisions. Dive into a world where psychology, technology, and market trends converge to create profitable trading opportunities Continue reading...
Navigating the Bullish Prospects with the Broadening Wedge Descending Pattern in Trading
Unlock the secrets of the Broadening Wedge Descending Pattern in trading! Dive into this comprehensive guide to master bullish trend strategies, understand the psychological aspects of pattern trading, and discover how Tickeron’s Real Time Patterns (RTP) tool can transform your trading experience with AI-driven insights and advanced analysis. Continue reading...
Decoding the Broadening Wedge Ascending (Bullish) Pattern in Stock Trading
Unlock the secrets of the Broadening Wedge Ascending (Bullish) pattern in stock trading! Dive into our comprehensive guide to master this key chart pattern, from identifying breakout points to making informed trading decisions. Explore the psychological interplay and strategic approaches that can enhance your market success. Get ready to elevate your trading skills by understanding and capitalizing on this significant bullish signal. Continue reading...
Harnessing the Power of the Broadening Top (Bullish) Pattern in Stock Trading
Step into the world of strategic trading with our insightful guide on the Broadening Top (Bullish) pattern! Discover how to navigate this key pattern in high-volatility stock markets, from identifying breakouts to effectively managing risks. Enhance your trading acumen with our blend of technical analysis and psychological insights, and prepare to make informed, profitable decisions in the ever-changing world of stock trading. Get ready to unlock the secrets of successful pattern trading! Continue reading...
Exploring the Broadening Bottom (Bullish) Pattern in Stock Trading
Unlock the potential of the Broadening Bottom (Bullish) pattern in your trading strategy! Dive into our detailed exploration of this key reversal indicator, understanding its unique characteristics and the pivotal role it plays in forecasting market movements. Discover how Tickeron’s AI technology empowers traders with in-depth analysis, pattern recognition, and insightful statistics. Get ready to transform your trading approach with advanced insights into the psychological dynamics and strategic applications of this essential market pattern. Continue reading...
Navigating the Bullish Terrain: The Channel Up (Bullish) Pattern in Stock Trading
Step into the world of bullish market trends with our deep dive into the Channel Up (Bullish) pattern! Uncover the secrets of leveraging this key pattern for strategic trading success. From psychological insights to practical strategies, learn how to navigate the stock market's upward trajectories and make informed decisions in a volatile trading environment. Get ready to transform your approach to pattern trading and ride the wave of bullish trends! Continue reading...
Understanding the Channel Down (Bearish) Pattern in Stock Trading
Dive into the intricacies of the Channel Down (Bearish) pattern in stock trading! Uncover expert insights on how to identify, interpret, and strategically leverage this crucial pattern for informed trading decisions. Explore the psychological dynamics and risk management techniques essential for navigating the volatile stock market. Perfect for traders looking to enhance their technical analysis skills and gain an edge in predicting market downtrends. Get ready to transform your trading approach with this comprehensive guide! Continue reading...
How Do Stock Chart Patterns Decode the Market's Signals?
Unlock the secrets of stock chart patterns and understand their role in predicting market movements. Dive into trendlines, reversal and continuation patterns, and the principle that history repeats itself. Enhance your trading strategies with these technical analysis tools Continue reading...
Channel Down (Bearish)
A Channel Down pattern shows a clearly defined downtrend and describes the behavior of the price contained between downward sloping parallel lines. Lower lows and lower highs characterize this price pattern. This pattern is created via a lower trendline connecting the swing lows (1, 3, 5), and an upper channel line that joins the swing highs (2, 4, 6). A breakdown below a descending channel’s resistance line points to a continuation of the decline momentum, while a break out above the channel’s resistance line can show a possible trend change. Continue reading...
Channel Up (Bullish)
A Channel Up pattern shows a clearly defined uptrend and describes the behavior of the price contained between upward sloping parallel lines. Higher highs and higher lows characterize this price pattern. This pattern is created via a lower trendline connecting the swing lows (1, 3, 5), and an upper channel line that joins the swing highs (2, 4, 6). A breakout above a Channel Up’s resistance line points to a continuation of the growth momentum, while a breakdown below the pattern’s support line can demonstrate a possible trend change. Continue reading...
What is a "Breakpoint"?
A breakpoint generally refers to a level of investment at which the fee structure changes. For mutual funds, it can mean a level that triggers a reduced sales load. An investor can either hit the breakpoint at the time of original investment or in some cases can sign a letter of intent to reach a certain investment level and qualify for the reduced fee that way. There may be multiple breakpoints for an investment, with the fee falling at each one. Continue reading...
Top Stock Chart Patterns
Chart patterns are shapes that sometimes appear in the charts of securities prices. Some of them may prove useful to you. Some frequently discussed chart patterns include Head and Shoulders, Double/Triple Bottom/Top, Cups and Saucers, Flags and Pennants, and others. Generally, it can be useful to compare and connect the troughs to each other and the peaks to each other to see if there is a trend confirmation if the breadth is narrowing, or if a reversal might be imminent. Continue reading...
What is the Elliott Wave Theory?
Elliot Wave Theory incorporates the natural cycles of nature and waves with market movements in an attempt to explain and predict the historical and future prices of stocks. Penned by Ralph Elliott in the early 20th century, the Elliott Wave Theory attempts to organize the seemingly random behavior of the market into cycles. The theory visualizes a series of waves cycles, each representing a different length of time or magnitude of a trend or cycle. Continue reading...
What Kinds of Overlays are Used in Chart Patterns?
Overlays are technical supplements which help to interpret the data of a normal price chart. Often a chart program will allow the user to pick a few different overlays at a time, to help him or her get a better idea of what is going on with the price. Some common overlays include moving average lines, Bollinger Bands, Ichimoku clouds, and channel lines. An overlay or series of overlays will appear as additional lines, shading, or other graphics on a price chart. An overlay helps a trader or analyst interpret the price data in the context of other data, by putting the other data right on top of it. Continue reading...
What are Breakouts?
Breakouts are events where a stock or index suddenly changes the magnitude and direction of its trading range and a new level of support and resistance is defined. A stock or index might bump up against the same support or resistance level for some time, or experience a time of consolidation and horizontal movement before the price breaks the upper limit of resistance and a new high is attained. Sometimes prices consolidate or hit resistance levels as the markets and investors wait to see what some news will be about the condition of the economy and so forth. Once there is good news, investors might take it as the “go-ahead” sign, and the price will breakout from the previous range. Continue reading...
What are Pivot Points?
Pivot points are quick-reference tools used in intra-day trading that give the trader benchmarks and perspective while short-term price movements happen. Pivot points are set by taking the high, low, and close price levels of a stock market index or individual security for the previous day or week and basing support and resistance levels from there by multiplying those numbers by simple factors. These multiple might be very simple, such as 2x or 3x, or using Fibonacci numbers, which is still a simple calculation if you have the Fibonacci numbers. These are meant to be very quickly generated on a piece of scratch paper, and because of their simplicity, they were a favorite among floor traders. Continue reading...
How to use the Broadening Bottom (Bullish) Pattern
A broadening bottom can be characterized as a bullish reversal pattern. It consists of two divergent lines that form a triangle. The movements between the two triangle sides increase as the pattern continues. Each side must be touched at least twice to be validated. The Broadening Bottom pattern is formed when the price of a security progressively makes higher highs (2, 4) and lower lows (1, 3, 5) following two widening trend lines. The price is expected to move up or down past the pattern depending on which line is broken first. What distinguishes a Broadening Bottom from a Broadening Top is that the price of the security is declining prior to entering the pattern formation. Continue reading...
How to use the Broadening Top (Bullish) Pattern in trading
Once the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the upward breakout price/entry point. To identify an exit, compute the target price by adding the pattern height (H on the chart) to the breakout price. The pattern height is the difference between the pattern’s highest high and its lowest low. Continue reading...
How to use the Broadening Wedge Ascending (Bullish) Pattern in trading
Once the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the upward breakout price/entry point. To identify an exit, compute the target price for this formation by adding the height of the pattern to the upward breakout level. Pattern height is the difference between the breakout price (the highest high within the pattern) and the highest low. Continue reading...
How to use the Broadening Wedge Descending (Bullish) Pattern in trading
Once the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the upward breakout price level. To identify an exit, compute the target price for by adding the height of the pattern to the upward Breakout level. Pattern height is the difference between the highest high and the lowest low. The upward Breakout level is the highest high. Continue reading...
How to use the Cup-and-Handle (Bullish) Pattern in trading
Once the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the upward breakout price/entry point. To identify an exit, compute the target price for the Cup-and-Handle pattern by adding the pattern’s height (the difference between the highest high and the bottom of the cup) to the price at the right cup lip. The confirmation move is when the security moves past the breakout price above the right cup lip. Continue reading...
What is the Rising Flag (Bullish) Pattern?
The Rising Flag (or Bullish Flag) pattern looks like a flag with a mast. It forms when rising prices experience a consolidation period, and the price moves within a narrow range defined by the parallel lines through points (2, 4) and (3, 5). After the consolidation, the previous trend resumes. This type of formation happens when the price of a security is expected to move in a rising trend line, but some volatility along the way creates a consolidation period. Continue reading...
What is the Profit Rate for the Head-and-Shoulders Bottom (Bullish) Pattern?
The bullish head and shoulders is the opposite image of a bearish head and shoulders. It has all the same parts—two shoulders, a neckline, and the head. Only instead of the shoulders and head being formed at high points for the stock, they are formed at low points. The investor psychology is the opposite of the bearish pattern. The stock is falling and hits a temporary low to form the left shoulder before a bounce occurs and forms the left side of the neck. The upward momentum is temporary and the next down leg takes the stock lower than the left shoulder and forms the head. Continue reading...
What is the Rising Pennant (Bullish) Pattern?
The Rising Pennant (or Bullish Pennant) pattern looks like a pennant with a mast. It forms when rising prices experience a consolidation period, and the price moves within a narrow range defined by the converging lines through points (2, 4) and (3, 5). After the consolidation, the previous trend resumes. This type of formation happens when anticipation of an uptrend is high, and when the price of a security consolidates within a range. It indicates growing investor interest in a potentially explosive uptrend. Continue reading...
What is the Rectangle Bottom (Bullish) Pattern?
The Rectangle Bottom pattern forms when the price of a security is stuck in a range bound motion. Two horizontal lines (1, 3, 5) and (2, 4) form the pattern as the security bounces up and down between support and resistance levels. Depending on who gives up first buyers or sellers the price can breakout in either direction. This pattern is commonly associated with directionless markets. Usually, the pattern performs better when there is a strong downtrend leading into the formation. Continue reading...
What is the Rectangle Top (Bullish) Pattern?
The Rectangle Top pattern forms when the price of a security is stuck in a range bound motion. Two horizontal lines (top: 1, 3, 5) and (bottom: 2, 4) form the pattern as the security bounces up and down between support and resistance levels. Depending on who gives up first buyers or sellers the price can breakout in either direction. This pattern is commonly associated with directionless markets. Usually the pattern performs better when there is a strong uptrend leading into the formation. Continue reading...
What is the Three Rising Valleys (Bullish) Pattern?
The Three Rising Valleys pattern forms when three minor Lows (1, 3, 5) arranged along an upward sloping trend line. It often appears at the end of a declining trend – an indication that buyers are overtaking sellers, which ultimately pushes the price higher. This type of formation happens when investors shift into buying mode following a consolidation period. Once the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the breakout price level. To identify an exit, compute the target price level by adding the pattern’s height (highest price minus the lowest price within the pattern) to the breakout level (the highest high). When trading, wait for the confirmation move, which is when the price rises above the breakout level. Continue reading...
What is the Profit Rate for the Ascending Triangle (Bullish) Pattern?
The Ascending Triangle pattern forms when the price of a security tests a resistance level and creates a horizontal top line (1, 3, 5), with an upward-sloping bottom line (2, 4) formed by a rising support level. The breakout can either be up or down, and it will determine whether the target price is higher or lower. This pattern is commonly associated with directionless markets, since the contraction (narrowing) of the market range signals that neither bulls nor bears are in control. When the price of a security consolidates around a certain level, it may indicate growing investor confidence for a significant uptrend. Continue reading...
What is the Descending Triangle (Bullish) Pattern?
The Descending Triangle pattern is formed when the price of a security establishes a support level (1, 3, 5) and bounces off that level to a declining resistance level, creating a down-sloping top line (2, 4). The breakout can either be up or down, depending if the resistance or highest support level is broken first. This pattern is commonly associated with directionless markets since the contraction (narrowing) of the market range signals that neither bulls nor bears are in control. Continue reading...
What is the Symmetrical Triangle Bottom (Bullish) Pattern?
The Symmetrical Triangle Bottom pattern forms when the price of a security fails to retest a high or a low and ultimately forms two narrowing trend lines. As the support and resistance levels consolidate, it forms a triangle (15). Symmetrical Triangles are characterized by the upper line sloping downward and lower line sloping upward. The price movement inside the triangle should fill the shape with some uniformity, without leaving large blank areas. Continue reading...
What is the Symmetrical Triangle Top (Bullish) Pattern?
The Symmetrical Triangle Top pattern forms when the price of a security fails to retest a high or low and ultimately forms two narrowing trend lines. The price is expected to move up or down past the triangle depending on which line is broken first. The price movement inside the triangle should fill the shape with some uniformity, without leaving large blank areas. This pattern is commonly associated with directionless markets since the contraction (narrowing) of the market range signals that neither bulls nor bears are in control. However, there is a distinct possibility that market participants will either pour in or sell out, and the price can move up or down with big volumes (leading up to the breakout). Continue reading...
What is the Triple Bottom (Bullish) Pattern?
The Triple Bottom pattern appears when there are three distinct low points (1, 3, 5) that represent a consistent support level. The security tests the support level over time but eventually breaks resistance and makes a strong move to the upside. This type of formation happens when sellers can not break the support price, and market participants eventually pour in. Once the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the breakout price level. To identify an exit, compute the target price by adding the pattern’s height (highest price minus the bottom price support level) to the breakout level the highest high. When trading, wait for the confirmation move, which is when the price rises above the breakout level. Continue reading...
What is the Falling Wedge (Bullish) Pattern?
The Falling Wedge pattern forms when the price of a security appears to be spiraling downward, and two down-sloping lines are created with the price hitting lower lows (1, 3, 5) and lower highs (2, 4). The two pattern lines intersect to form a narrow triangle. Unlike Descending Triangle patterns, however, both lines need to have a distinct downward slope, with the top line having a steeper decline. Continue reading...
What is the Rising Wedge (Bullish) Pattern?
The Rising Wedge pattern forms when prices seem to be spiraling upward, and two upward sloping trend lines are created with the price hitting higher highs (1, 3, 5) and higher lows (2,4). The two pattern lines intersect to form an upward sloping triangle. Unlike Ascending Triangle patterns, however, both lines need to have a distinct upward slope, with the bottom line having a steeper slope. This pattern is commonly associated with directionless markets since the contraction (narrowing) of the market range signals that neither bulls nor bears are in control. However, there is a distinct possibility that market participants will either pour in or sell out, and the price can move up or down with big volumes (leading up to the breakout). Continue reading...
What is the Broadening Bottom (Bearish) Pattern?
The Broadening Bottom pattern forms when a security price makes higher highs (2, 4) and lower lows (1, 3, 5) following two widening trend lines. The price is expected to move up or down past the pattern depending on which line is broken first. What distinguishes a Broadening Bottom from a Broadening Top is that the price of the security is declining prior to entering the pattern formation. This type of formation happens when volatility is high or increasing, and when a security's price is moving with high volatility but or no direction. It potentially indicates growing investor nervousness and a little indecisiveness. Continue reading...
What is the Broadening Top (Bearish) Pattern?
The Broadening Top pattern forms when a security price makes higher highs (1, 3, 5) and lower lows (2, 4) following two widening trend lines. The price is expected to move up or down past the pattern depending on which line is broken first. What distinguishes a Broadening Top from a Broadening Bottom is that the price of the security is rising prior to entering the pattern formation. This type of formation happens when volatility is high or increasing, and when a security’s price is moving with high volatility but little or no direction. It indicates growing investor nervousness and indecisiveness. Continue reading...
What is the Broadening Wedge Ascending (Bearish) Pattern?
The Broadening Wedge Ascending pattern forms when a security price progressively makes higher highs (1, 3, 5) and higher lows (2, 4), following two widening trend lines. This pattern may form when large investors spread their buying over a period of time. When initial buying occurs, other market participants react to rising price and jump on the bandwagon to participate. Then value investors begin to sell, believing the price has risen too much, which spurs the original large investor to resume buying again. Once these activities stop, the price may break out in either direction. Continue reading...
What is the Broadening Wedge Descending (Bearish) Pattern?
The Broadening Wedge Descending pattern forms when a security price makes lower lows (1, 3, 5) and lower highs (2, 4), forming two downward sloping lines that expand over time (kind of like a pointed down megaphone shape). This pattern may form when large investors spread out their selling over a period of time, and the Breakout can occur in either direction. When the initial selling occurs, other market participants react to falling price and jump on the bandwagon to participate. Then the value investors begin to sell, believing the price has not fallen enough, which spurs the original large investor to resume selling again. Continue reading...
What is the Inverted Cup-and-Handle (Bearish) Pattern?
The Inverted Cup-and-Handle (sometimes called Inverted Cup-and-Holder) pattern forms when prices rise then decline to create an upside-down “U”like shape (1, 2, 3, also known as the Cup), followed by a shorter relatively straight price increase that bounces from the right lip (from 3 to 4, creating the Handle). The rising handle forms as a result of mounting buying pressure created when the security retests a low at the right lip of the cup. Once the buyers give up, sellers take over and the security has the potential to decline rapidly. Continue reading...
What is the Dead Cat Bounce (Bearish) Pattern?
The Dead Cat Bounce pattern appears when a security's price falls quickly but has a temporary “v-shaped” recovery before resuming its downward trend. The temporary bounce (from point 2 to point 3) may be explained by shorters covering their positions or buying by investors who think the price has already reached a low point. It is important to wait for the confirmation move, which is when the price breaks below the low where the dead cat bounce occurred (point 2). Continue reading...
What is the Falling Flag (Bearish) Pattern?
The Falling Flag (or Bearish Flag) pattern looks like a flag with the mast turned upside down (the mast points up). The pattern forms when falling prices experience a consolidation period, and the price moves within a narrow range defined by the parallel lines through points 2-4 and 3-5. After the consolidation, the previous trend resumes. This type of formation happens when anticipation of a downtrend is high, and when a security’s price consolidates during a broader decline. It may indicate growing investor concern of an impending downtrend. Continue reading...
What is the Head-and-Shoulders Top (Bearish) Pattern?
The Head and Shoulders pattern has five points to it. There is the left shoulder, the left side visit to the neckline area, the head, the right side visit to the neckline, and the right shoulder. A head and shoulders pattern appears as a baseline with three peaks, the outside two are close in height and the middle is highest. The image below is an example of the bearish head and shoulders pattern: Continue reading...
What is the Falling Pennant (Bearish) Pattern?
The Falling Pennant (or Bearish Pennant) pattern looks like a pennant turned upside down (the mast points up). It forms when falling prices experience a consolidation period, and the price moves within a narrow range defined by the converging lines through points (2, 4) and (3, 5). After the consolidation, the previous trend resumes. This type of formation happens when anticipation of downtrend is high, and when the price of a security consolidates during a declining trend. It may indicate growing investor concern of an impending downtrend. Continue reading...
What is the Rectangle Bottom (Bearish) Pattern?
The Rectangle Bottom pattern forms when the price of a security is stuck in a rangebound motion, bouncing between support and resistance levels. Two horizontal lines (1, 3, 5) and (2, 4) form the pattern. Depending on who gives up first buyers or sellers the price can Breakout in either direction. This pattern is commonly associated with directionless markets. Usually the pattern performs better when there is a strong downtrend leading into the formation. Continue reading...
What is the Rectangle Top (Bearish) Pattern?
The Rectangle Top pattern forms when the price of a security is stuck in a rangebound motion, and it bounces between support and resistance levels. Two horizontal lines are formed (top: 1, 3, 5) and (bottom: 2, 4) as a result. Depending on who gives up first – buyers or sellers – the price can Breakout in either direction. This pattern is commonly associated with directionless markets. Usually the pattern performs better when there is a strong uptrend leading into the formation. Continue reading...
What is the Three Falling Peaks (Bearish) Pattern?
The Three Falling Peaks pattern forms when three minor Highs (1, 3, 5) arrange along a downward-sloping trend line. This pattern often emerges at the end of a rising trend, when a security slowly rolls over. It potentially indicates sellers moving in to replace buyers, which pushes the price lower. If the price breaks out from the bottom pattern boundary, day traders and swing traders should trade with the DOWN trend. Consider selling the security short or buying a put option at the downward breakout price level. To identify an exit, compute the target price by subtracting the pattern’s height (maximum price minus minimum price within the pattern) from the breakout level the lowest low. When trading, wait for the confirmation move, which is when the price moves below the breakout level. Continue reading...
What is the Ascending Triangle (Bearish) Pattern?
The Ascending Triangle pattern has a horizontal top line (1, 3, 5) representing a resistance level, and an upward-sloping bottom line (2, 4). The Breakout can either be up or down, and the direction of the Breakout will determine whether the Target Price is higher or lower. This pattern is commonly associated with directionless markets, since the contraction (narrowing) of the market range signals that neither bulls nor bears are in control. When the price of a security consolidates around highs it might indicate that a significant downtrend is ahead. Continue reading...
What is the Descending Triangle (Bearish) Pattern?
The Descending Triangle pattern has a horizontal bottom (1, 3, 5) which represents the support level, and a down-sloping top line (2, 4). The breakout can be either up or down and the direction of the breakout determines which corresponding price level is the target. This pattern is commonly associated with directionless markets since the contraction (narrowing) of the market range signals that neither bulls nor bears are in control. When the price of a security consolidates in a somewhat volatile fashion, it may indicate growing investor concern that the price is set to break out. Continue reading...
What is the Symmetrical Triangle Bottom (Bearish) Pattern?
The Symmetrical Triangle Bottom pattern forms when the price of a security fails to retest a high or a low and ultimately forms two narrowing trend lines. Points 1 5 form the triangle patterns. The price is expected to move up or down past the triangle depending on which line is broken first. This pattern is commonly associated with directionless markets since the contraction (narrowing) of the market range signals that neither bulls nor bears are in control. However, there is a distinct possibility that market participants will either pour in or sell out, and the price can move up or down with big volumes (leading up to the breakout). Continue reading...
What is the Symmetrical Triangle Top (Bearish) Pattern?
The Symmetrical Triangle Top pattern forms when the price of a security fails to retest a high or low and ultimately forms two narrowing trend lines. The price is expected to move up or down past the triangle depending on which line is broken first. This pattern is commonly associated with directionless markets since the contraction (narrowing) of the market range signals that neither bulls nor bears are in control. However, there is a distinct possibility that market participants will either pour in or sell out, and the price can move up or down with big volumes (leading up to the breakout). The price movement inside the triangle should fill the shape with some uniformity, without leaving large blank areas. Continue reading...
What is the Triple Tops (Bearish) Pattern?
The Triple Tops pattern appears when there are three distinct minor Highs (1, 3, 5) at about the same price level. The security is testing the upper resistance level (horizontal line formed by (1, 3, 5), but the price ultimately declines as buyers give up. This type of formation potentially happens when investors can not break the resistance price. There is a distinct possibility that market participants will sell out, and the price can move down with big volumes (leading up to the breakout). Continue reading...
What is the Falling Wedge (Bearish) Pattern?
The Falling Wedge pattern forms when prices appear to spiral downward, with lower lows (1, 3, 5) and lower highs (2, 4) creating two down-sloping trend lines that intersect to form a triangle. Unlike Descending Triangle patterns, however, both lines need to have a distinct downward slope, with the top line having a steeper decline. This pattern is commonly associated with directionless markets since the contraction (narrowing) of the market range signals that neither bulls nor bears are in control. However, there is a distinct possibility that market participants will either pour in or sell out, and the price can move up or down with big volumes (leading up to the breakout). Continue reading...
What is the Rising Wedge (Bearish) Pattern?
The Rising Wedge pattern forms when prices appear to spiral upward, with higher highs (1, 3, 5) and higher lows (2,4) creating two up-sloping trend lines that intersect to form a triangle. Unlike Ascending Triangle patterns, both lines need to have a distinct upward slope, with the bottom line having a steeper slope. This pattern is commonly associated with directionless markets since the contraction (narrowing) of the market range signals that neither bulls nor bears are in control. There is a distinct possibility that market participants will sell out, and the price can move down with big volumes (leading up to the breakout). Continue reading...