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Chart Patterns

Chart Patterns

What is chart pattern in stock market?

A chart pattern or price pattern is a pattern within a chart when prices are graphed. In stock and commodity markets trading, chart pattern studies play a large role during technical analysis. Chart patterns are used as either reversal or continuation signals.

Chart pattern are divided into 3 categories , reversal , continuation and Triangle pattern.

Reversal Pattern

Reversal Pattern any pattern on a chart that indicates a previous trend is changing to a new trend.

  1. Double top
  2. Double bottom
  3. Head and shoulder
  4. Inverse Head and shoulder
  5. Falling Wedge
  6. Rising Wedge

Continuation Pattern

Continuation Pattern a trend in a security price series chart is expected to continue. There are several continuation patterns that technical analysts will identify as an indicator of an extended price trend.

  1. Falling Wedge Continuation Pattern
  2. Rising Wedge Continuation Pattern
  3. Bullish Rectangle
  4. Bearish rectangle
  5. Bullish Pennant
  6. Bearish Pennant

Triangle Chart pattern

A triangle is a technical chart pattern created by drawing trend lines along a converging price range. Variations of a triangle include ascending, descending and symmetrical triangles. Triangles are similar to wedges and pennants and can be powerful continuation or reversal patterns.

  1. Ascending Triangle
  2. Descending Triangle
  3. Symmetrical Triangle
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