Chart patterns are great ways to anticipate reversals of trends. Other indicators like MACD and RSI can help you figure out more exactly when but identifying chart patterns are a great way to see a reversal coming. The first step is knowing how to draw trend lines. With these you can more easily see how the range of a certain move is changing. If the range is...
IBB formed a rising wedge. Both lines are uptrend. The angle of ascent is steeper on the support line. The pattern form highs higher than previous and each low is successively higher as well. After a few attempts, the prices finally break through support. To confirm the breakout, the price should close below the support line, if so, make a short. The profit...
EURUSD formed a falling wedge, both lines are downtrend. The angle of descent is steeper on the resistance line. The pattern form highs lower than previous and lows lower as well. After a few attempts, the prices finally break through resistance. To confirm the breakout, the price should close above the resistance line, if so, make a long. The profit target is...
This is a breakout out of the book! look how nicely it formed! we see a highest high to start from. And then it all goes according to what the textbook says: "Price will form higher lows and lower highs, until it all collapses and just breaks out." This is a pattern you should always keep in mind! It is sooo likely to happen, and more important, if you trade...
Hello traders! Hope everyone is having a profitable week. I have published my idea few months ago about how the bulls were returning to euraud. After the simple 3 signs that this pair has gave me, I started trading with the trend and went long! Total Profit: $4878.83 Trading Diary: goo.gl/WOi6yU Please like and comment for more of my educational...
Hey guys this is a very short educational post on two of the most commonly found chart patterns in the market. These are often mistaken and confused even by experienced traders. Here we have a rising wedge and a bearish triangle both are bearish in nature. However one is a reversal pattern and the other is a trend continuation pattern Example of a wedge ...
Hello everyone these are some of the most commonly found classical reversal patterns that you would come across on a daily basis. You can read more about them from the Encyclopedia of Classical Chart Patterns By Thomas N. Bulkowski which is a must read. Cheers
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Double Top: The double top is a reversal pattern of an upward trend in a stock's price. The double top marks an uptrend in the process of becoming a downtrend. Sometimes called an "M" formation because of the pattern it creates on the chart, the double top is one of the most frequently seen and common of the patterns. Because they seem to be so easy to identify,...