Chart Patterns

Chart Patterns are formed by support and resistance levels and by trend lines.

The cup and handle is a longer term continuation pattern, similar to an ascending triangle.

Double Bottom Patterns are useful reversal patterns in a downtrend. They are identified by measuring from the lowest trough to the level of the intervening peak.

Double tops are useful reversal patterns in an uptrend, identified by two peaks of similar height, followed by a break below the intervening trough.

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 are formed by support and resistance lines in close proximity. Price fluctuates in a narrow band with no clear trend.

Triangles and wedges can be powerful continuation or reversal patterns, depending on their shape.

Triple tops are similar to double tops and comprise three peaks of similar height.

Support, resistance and trading ranges.

Flags and pennants are short-term congestion patterns that form in trends and are reliable continuation signals.

Rectangles are of the most reliable chart patterns when they appear in close proximity to support or resistance during an up-trend.

Volume activity provides powerful confirmation of price signals and often gives advance warning.

How to identify trends, control, commitment, uncertainty, inside and outside days.

Gaps are often found at breakouts or during a strong trend.

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 above the normal range highlight unusual trading activity, as do volume dips with lower than normal volume.

Candlestick chart signals that may not be apparent on a normal bar chart.

The 8 most reliable Japanese Candlestick chart patterns.

Candlestick patterns that tend to resolve in the opposite direction to the prevailing down-trend.

Candlestick patterns that tend to resolve in the opposite direction to the prevailing up-trend.

Candlestick patterns that tend to resolve in the same direction as the prevailing up-trend.

Candlestick patterns that tend to resolve in the same direction as the prevailing down-trend.

Consolidation candlestick patterns that have close to an even chance of resolving in either direction.

Doji candlesticks represent indecision on a stock chart and warn of a potential reversal in the current trend.

Heikin Ashi candlesticks filter out market noise from traditional candlesticks.

How to improve the accuracy of candlestick signals.

Every trend change is signaled by a reversal day. The secret is to identify their potency.

A powerful reversal signal, especially with a large spike after a strong advance...

An inside day that signals a fairly weak reversal...

Island reversals are powerful signals, identified by gaps between the signal day and the days on either side...

Key reversal signals do not occur very often but are definitely worth the wait...

Open-Close reversals are potent reversal signals when they follow a strong trend.

Pivot point reversals are the simplest and most commonly encountered of all reversal signals.

Basic Point and Figure chart patterns: Support and resistance, trendlines, breakouts, bullish and bearish signals.

One of the most reliable Point and Figure chart patterns, Bull Traps occur when an upward breakout retreats back below the new support level.

Identify the cup and handle pattern on Point and Figure charts. Popularized by William J O'Neill (How To Make Money In Stocks).

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.

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.

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.