- Chart Patterns
Chart Patterns are formed by support and resistance levels and by trend lines.
- Cup and Handle
The cup and handle is a longer term continuation pattern, similar to an ascending triangle.
- Double Tops
Double tops are useful reversal patterns in an up-trend, identified by two peaks of similar height, followed by a break below the intervening trough.
- Head & Shoulders
A powerful reversal signal, the head and shoulders pattern is completed by a lower peak followed by a break below the neckline.
Support and resistance are the foundation stone of all technical analysis.
- Trading Ranges
Trading Ranges are formed by support and resistance lines in close proximity. Price fluctuates in a narrow band with no clear trend.
- Triangles & Wedges
Triangles and wedges can be powerful continuation or reversal patterns, depending on their shape.
- Triple Tops
Triple tops are similar to double tops and comprise three peaks of similar height.
- Short-Term Support & Resistance
Support, resistance and trading ranges.
- Flags & Pennants
Flags and pennants are short-term congestion patterns that form in trends and are reliable continuation signals.
Rectangles are narrow consolidations in a trend.
- Rectangle Signals
Rectangles are of the most reliable chart patterns when they appear in close proximity to support or resistance during an up-trend.
- Volume Patterns
Volume activity provides powerful confirmation of price signals and often gives advance warning.
- Bar/OHLC Charts
How to identify trends, control, commitment, uncertainty, inside and outside days.
Gaps are often found at breakouts or during a strong trend.
- Wide Ranging Days
A powerful signal, especially after big volume changes or a strong trend.
A spike is identified by a high sharply above the days on either side, a close near the day's low, and a strong preceding trend.
- Volume Spikes/Dips
There are two times where daily volume will highlight unusual trading activity: a spike above the normal range or a dip below normal activity levels.
- Candlestick Patterns
Candlestick chart patterns highlight trend weakness and reversal signals that may not be apparent on a normal bar chart.
- Strongest Candlestick Patterns
Japanese Candlestick Chart Patterns, displayed from strongest to weakest.
- Candlestick Reversals
Library of Japanese Candlestick Reversal Patterns, displayed from strongest to weakest, in two columns: Bullish & Bearish Patterns. Reversals are candlestick patterns that tend to resolve in the opposite direction to the prevailing trend.
- Candlestick Continuations
Library of Japanese Candlestick Continuation Patterns, displayed from strongest to weakest, in two columns: Bullish & Bearish Patterns. Continuation Patterns are candlestick patterns that tend to resolve in the same direction as the prevailing trend.
- Candlestick Consolidations
Consolidation Patterns are typically weak candlestick patterns that have close to an even chance of resolving in either direction.
- Reversal Days
Every trend change is signaled by a reversal day. The secret is to identify their potency.
- Closing Price Reversal
A powerful reversal signal, especially with a large spike after a strong advance...
- Hook Reversal
An inside day that signals a fairly weak reversal...
- Island Reversal
Island reversals are powerful signals, identified by gaps between the signal day and the days on either side...
- Key Reversal
Key reversal signals do not occur very often but are definitely worth the wait...
- Open-Close Reversal
Open-Close reversals are potent reversal signals when they follow a strong trend.
- Pivot Point Reversal
Pivot point reversals are the simplest and most commonly encountered of all reversal signals.
Point & Figure Patterns
- Basic Point & Figure Patterns
Basic Point and Figure chart patterns: Support and resistance, trendlines, breakouts, bullish and bearish signals.
- Bull & Bear Traps
One of the most reliable Point and Figure chart patterns, Bull Traps occur when an upward breakout retreats back below the new support level.
- Cup & Handle
Identify the cup and handle pattern on Point and Figure charts. Popularized by William J O'Neill (How To Make Money In Stocks).
- False Breaks
Similar to Point and Figure bull and bear traps, false (or marginal) breaks occur at minor support levels (from a previous low) or minor resistance.
- Bull & Bear Traps - Primary Index
Upward breakouts in a primary down-trend are notoriously unreliable.
Retracements (or corrections), during a Point and Figure trend, tell us about the strength of the trend.
An upward Point and Figure spike is where a rally exceeds the previous column of Xs by at least 10 boxes.
- Trend Reversals
After a Point and Figure up-trend, marginal new highs (especially where accompanied by equal or lower lows) indicate a loss of momentum.
For a valid Point and Figure triangle there must be at least two retracements counter to the prevailing trend.
Active or Reactive?
Many investors follow active strategies but end up being reactive, rotating in and out of stocks at the wrong time.
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