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Chart Patterns

Monday, January 1, 0001

Analysing Chart Patterns

As any experienced trader will tell you, tracing, decoding and understanding chart patterns can really make or break an aspiring trader. Charts often form patterns. Patterns vary, yet they contain much information. This information could po…
Monday, January 1, 0001

Double Top & Double Bottom

Double Tops and Double Bottoms are reversal patterns. They depict an asset's attempt to continue moving in the existing direction by either moving higher or falling lower. Double Tops and Double Bottoms form after two failed attempts and in…
Monday, January 1, 0001

Triple Top & Triple Bottom

Triple Tops and Triple Bottoms are very similar to Double Tops and Double Bottoms respectively. They, too, are reversal patterns, indicating the end of an existing trend. They form after an asset's price attempts to break past a specific le…
Monday, January 1, 0001

Head and Shoulders & Inverse Head and Shoulders

Head and Shoulders and Inverse Head and Shoulders patterns are two of the most popular and reliable trend reversal formations. As you can see from the chart, the Head and Shoulders pattern, or Head-and-Shoulders Top, usually forms du…
Monday, January 1, 0001

Rising Wedge & Falling Wedge

Both Rising Wedges and Falling Wedges indicate a pause in a given trend, thereby suggesting a period of indecision among traders. They could signify a reversal or a continuation of the trend. A Rising Wedge can be either a reversal o…
Monday, January 1, 0001

Bearish Pennant & Bullish Pennant

Pennants are usually flat symmetrical triangles that reflect a brief pause in trading. They form either during a big uptrend or a big downtrend, as support and resistance levels move closer to each other. Both the Bearish Pennant and the…
Monday, January 1, 0001

Bearish Rectangle & Bullish Rectangle

Rectangles are chart patterns which indicate trend continuation and form when price movements are restricted within strong, parallel support and resistance levels. Both Bearish Rectangles and Bullish Rectangles mirror periods of consolidati…
Monday, January 1, 0001

Triangles

Triangular chart patterns can either be symmetrical, ascending or descending. They are formed by converging support and resistance levels. Symmetrical Triangles A Symmetrical Triangle is formed by the convergence of a descending res…
Did you know?

The average daily trading volume in the foreign exchange market exceeds $5 trillion.

Word of the day
"Round-Trip Trading" - Trading activity that attempts to inflate transaction volumes by repeatedly buying and selling a particular asset.
Pro Tip

Do not open a real account before doing some demo-trading.

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