Variety of Chart Pattern
Have you heard the term Triangle? Or Head & Shoulder? Or has it never been at all? Indeed, the understanding of Pattern Charts varies. To be easy to remember, Chart Patterns are generally categorized into two types:
A. Reversal Pattern
This price pattern signals that prices have a high probability of reversing from the previous major trend. That is, the price patterns in this category can provide an initial signal when you can sell at the highest price point or buy at the lowest price level. Very profitable, right?
Double Top and Double Bottom
This price pattern includes one price pattern with the highest occurrence frequency, because the formation is easily recognizable. The Double Top Formation indicates that prices tend to slow down when they reach their peak.
Double Top is the Bearish version, while the Bullish version is Double Bottom.
chart pattern, double top
Triple Top and Triple Bottom
This price pattern is a variant of the previous price pattern. The difference is, the accuracy of this pattern is slightly higher because the price shows a strong reaction at the point of Resistance or Support.
chart pattern, triple bottom
Head and Shoulder
The first and second shoulders are smaller than the head as an indication of the weakening of the momentum to keep the price to its highest point (Head). Once the price starts to break through the neckline, you can execute Sell orders.
The Head And Shoulder pattern also has a Bullish version, namely Inverted Head And Shoulder.
chart pattern, head and shoulder
Falling Wedge
Understanding the Chart Pattern is quite simple; if prices have begun to appear to converge down, there is a potential that prices will turn up. The Falling Wedge also often appears on the price chart.
chart pattern, falling wedge
Rising Wedge
Simply put, this price pattern is a Bearish version of the Falling Wedge. If prices converge upwards, there is potential if later the market will retaliate with a sell-off action.
chart pattern, falling wedge
Rounding Bottom
Compared to other reversal patterns, this one pattern is quite rare. The reason is, the Rounding Bottom formation requires a lot of candlesticks, so we can be sure this price pattern is designed for long-term trading.
chart pattern, rounding bottom
Bump And Run
This chart pattern is actually also quite often popping up on the chart. It's just that, still not many people recognize this pattern. In fact, the formation is simple and quite promising.
chart pattern, bump and run
B. Continuation Pattern
Unlike the Chart Pattern Reversal patterns, this time the price pattern gives the signal that the trend will still continue even though it has reversed direction. This is quite common especially because market movements often experience retracement.
Flag
At first glance, the price formation of this pattern is similar to the Trendline Channel tool. It's true, Flag and Channel Trend patterns are often used by traders to keep an eye on the potential breakout of the Resistance or Support limits (diagonal lines).
chart pattern, flag
Pennant
The Pennant pattern highlights the potential for price movements to break the price after the consolidation period. At first glance this pattern is similar to the Wedges pattern, but the location of the difference is the degree of slope. The Wedge pattern will lean in one direction, while the Pennant Pattern is almost symmetrical.
chart pattern, pennant
Symmetrical Triangle
This pattern also looks almost similar to the Pennant pattern, so what's the difference? In comparison, this pattern usually requires more candlesticks to complete the formation. For example Pennant can be formed from just a few candles, then the Symmetrical Triangle pattern can take twice the total candle to complete the formation.
Second, compared to the Pennant pattern, this pattern can be said to be more "wishy-washy", because prices can breakout up or down.
chart pattern, symmetrical triangle
Ascending Triangle
Note the difference in this Chart Pattern with the previous equilateral triangle pattern. In the Ascending Triangle pattern, prices converge upwards, but continue to hit the same Resistance range. Once the price breaks the Resistance, a strong Buy signal appears.
chart pattern, ascending triangle
Descending Triangle
If the Ascending Triangle implies a Buy signal. Conversely, the Descending Triangle pattern indicates a selling opportunity after the price has broken through the Support.
chart pattern, descending triangle
Rectangle
Well, if prices bounce back and forth, it is unclear which Top and Bottom, you might be having a Rectangle price pattern.
chart pattern, rectangle
Cup With Handle
Are you thirsty for profit? Beat your thirst by drinking the benefits of the Pattern Chart with this cup-like shape. This price pattern is similar to Rounding Bottom, but the location of the difference is that there is con
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