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- Ascending and descending staircase. Ascending and descending staircases are probably the most basic chart patterns. But they’re still important to know if you’re interested in identifying and trading trends.
- Ascending triangle. The ascending triangle is a chart pattern that’s created when a horizontal set of highs is met by an ascending set of lows. The upper horizontal line is the resistance level, and the lower upward sloping line is support.
- Descending triangle. The descending triangle is the opposite of an ascending one. It usually occurs after a downtrend, and is formed when a horizontal set of lows (the support level) is met by a descending set of highs (resistance).
- Symmetrical triangle. Symmetrical triangle patterns occur when two trend lines approach one another. Essentially, it’s like if you overlaid an ascending triangle onto a descending one – and got rid of both of the horizontal lines.
- Bullish Reversal Candlestick Patterns
- Bearish Reversal Candlestick Patterns
- Bullish Continuation Candlestick Patterns
- Bearish Continuation Candlestick Patterns
Bullish reversal candlestick patterns show that buyers are in control, or regaining control of a movement. They are often used to go long, but can also be a warning signal to close short positions. Here’s an extensive list of them:
Bearish reversal candlestick patterns show that sellers are in control, or regaining control of a movement. They are often used to short, but can also be a warning signal to close long positions. Here’s an extensive list of them:
Bullish continuation candlestick patterns show that buyers are still in control after an upward movement. They are often used to go long or to add more to long positions. Here’s an extensive list of them:
Bearish continuation candlestick patterns show that sellers are still in control after a downward movement. They are often used to go short or to add more to short positions. Here’s an extensive list of them:
Сhart Patterns Cheat Sheet. Chart patterns are visual representations of price movements in financial markets that traders use to identify potential trends and make informed trading decisions. These patterns can be found on various charts, such as line charts, bar charts, and candlestick charts. Chart patterns that will be shown in the chart ...
- Ascending and descending staircase. Ascending and descending staircases are probably the most basic chart patterns. But they’re still important to know if you’re interested in identifying and trading trends.
- Ascending triangle. The ascending triangle is a chart pattern that’s created when a horizontal set of highs is met by an ascending set of lows. The upper horizontal line is the resistance level, and the lower upward sloping line is support.
- Descending triangle. The descending triangle is the opposite of an ascending one. It usually occurs after a downtrend, and is formed when a horizontal set of lows (the support level) is met by a descending set of highs (resistance).
- Symmetrical triangle. Symmetrical triangle patterns occur when two trend lines approach one another. Essentially, it’s like if you overlaid an ascending triangle onto a descending one – and got rid of both of the horizontal lines.
Here’s an example of what that trade might look like: Shooting star candlestick pattern trading example. Just as you’d expect, the shooting star occurs at the end of an uptrend, giving you an opportunity to short the stock, expecting a reversal. After the shooting star candle is formed, you initiate a short position on the break lower ...
Jun 7, 2024 · Bullish Patterns: These suggest that prices are likely to rise and are typically seen in settings where buyers are gaining strength. Examples include the Ascending Triangle and the Bullish Engulfing pattern. Bearish Patterns: These suggest a potential decline in prices, reflecting increasing selling pressure.
People also ask
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Sep 26, 2024 · Chart patterns are visual representations of market psychology, not guaranteed predictions. Common patterns include Cup and Handle, Head and Shoulders, Bull and Bear Flags, and Double Tops. Volume is crucial in confirming the validity and strength of chart patterns. No pattern is fool proof - always use stop losses and manage your risk.
