Stock Chart Patterns All Traders Should Know

 

Technical analysis is one of the best tools traders can use to spot shifts within the stock market patterns , allowing them to predict support and resistance levels within a predictable timeframe.

There are many different continuation and reversal patterns to look out for when reading the stock charts. Stock chart patterns are essential, and knowing them will give an investor a trading edge, so it pays to keep these close. Looking for these chart patterns every day, studying the charts will allow the trader to learn and recognize technical trading strategies in the data and the implications that these patterns imply.

Click the desired chart to get full details on how technical traders use them.

·         Ascending Triangle

·         Symmetrical Triangles

·         Descending Triangle

·         Bump and Run

·         Cup and Handle

·         Double Bottom

·         Double Top

·         Flag

·         Falling Wedge

·         Pennant

·         Inverse Head and Shoulders

·         Head and Shoulders Top

·         Rounding Bottom

·         Triple Top Reversal

·         Price Channel

·         Triple Bottom Reversal

 

Traders who use technical analysis study chart patterns to analyze stocks or indexes price action in accordance with the shape chart creates. By understanding the trends, a trader can confirm an accurate short-term price movement. For example, if the chart represents an ascending triangle, the price will continue to bounce off the trendlines until the convergence, where the price breaks out to the upside. Each pattern has its own set of rules and strategies to interpret. The 17 chart patterns listed in this resource are one’s technical traders can turn to over and over again, allowing them to take advantage trend reversals and future price movement.


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