Descending Triangle As you might expect, the descending triangle is the exact reverse of the ascending triangle, and is a bearish pattern whenever it is seen. Usually it will be seen in the context of a downtrend, and therefore it is regarded as a continuation pattern. In a similar way to the ascending triangle, it […]

Ascending Triangle The Ascending Triangle is one of my favorite patterns to trade. It is a bullish chart pattern that may form when a share holder begins selling off a large block of shares at a fixed price to the market. The pattern shows the case of strong overhead supply being met by rising demand […]

Symmetrical Triangle   Here’s the symmetrical triangle again, with a few more lines added for discussion. It’s a neutral sort of shape, so it’s usually neutral in effect, just giving a pause to the current trend before it continues again. You can see it in either an uptrend or a downtrend, and the chances are […]

Triangles These patterns are usually classified into one of three types of triangles; the symmetrical triangle which has the top line descending and the lower line ascending, the ascending triangle which has a horizontal top line and a lower line ascending, and the descending triangle which has a descending top line and horizontal lower line. […]

Continuation Patterns Continuation patterns are the other type of patterns that you will be able to identify on the charts. They are usually shorter term than the reversal patterns, and the main difference from reversal patterns is that they suggest trend consolidations and continuations rather than reversing the trend. Continuation patterns commonly occur when a […]

Double Top and Bottom Reversal Patterns You are much more likely to see double patterns than triple patterns. It is almost as common as the head and shoulders reversal pattern. Here’s the double top – As you can see, the two peaks are at roughly the same level, showing a weakening in the uptrend. After […]

Triple Top and Bottom Reversal Patterns As we have covered the head and shoulders in such depth, the triple top and bottom pattern does not need to have such detail. Most of the points already mentioned in connection with the head and shoulders also apply to this pattern. httpv://www.youtube.com/watch?v=D_w4zMDpt0s Practical Example of Multi-Timeframe Analysis: Triangle […]

Targeting the Price Part of trading profitably is to work out the risk and potential reward of every trade that you make. Some trades just don’t offer enough upside to make the risk worth taking. So you need to know about ways to figure the price move you can expect, if all goes well. The […]

Head and Shoulders Reversal Pattern A Head and Shoulders Bottom is a reversal pattern that can appear at the end of a major decline where it can signal the end of the downtrend. A good Head and Shoulders Bottom will have the presence of symmetry. As stated above, this is the archetypal reversal pattern, and […]

Reversal Patterns Sooner or later, any trend will end up reversing direction. As a spread trader, you need to be able to spot the signs of a trend that’s running out of steam. If you’ve been riding that trend, it is an obvious time to quit while you’re ahead. And if you’re really confident that […]