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.
Reversal Pattern any pattern on a chart that indicates a previous trend is changing to a new trend.
- Double top
- Double bottom
- Head and shoulder
- Inverse Head and shoulder
- Falling Wedge
- Rising Wedge
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.
- Falling Wedge Continuation Pattern
- Rising Wedge Continuation Pattern
- Bullish Rectangle
- Bearish rectangle
- Bullish Pennant
- 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.
- Ascending Triangle
- Descending Triangle
- Symmetrical Triangle