Chart patterns provide context for applying key levels to trade off of on a chart. One group of similar chart patterns uses the XABCD harmonic chart pattern. The XABCD is a 4-legged group of reversal patterns. The XABCD pattern was first observed and noted by Harold McKinley Gartley. These types of patterns is a road […]
A bearish divergence pattern is defined on a chart when prices make new higher highs but a technical indicator that is an oscillator doesn’t make a new high at the same time. This is a signal that bullish sentiment is losing momentum with the high probability that sellers are stepping in and the market may
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Harmonic Patterns use the identification of quantified chart price action structures that have specific and consecutive Fibonacci ratio alignments that form the visual structures. Harmonic patterns calculate the Fibonacci levels of the price patterns to identify high probability reversal points on the charts. This method believes that harmonic patterns or cycles repeat on charts in
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Here is a visual index of all the most popular chart patterns used by traders to visually trade price action in the path of least resistance. The most misunderstood concept of using chart patterns to trade is that the edge doesn’t come from their ability to predict the future or their win rate. The edge
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The dip and rip chart pattern starts with a strong opening (usually a gap up) that is followed by a quick dip in the price. The dip is followed by a fast return to the previous high price, and can even break out over that high. Price dips first and then it rips. It can
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Website Articles Table of Contents with Links: What is Technical Analysis? Does Technical Analysis Work? What causes a Chart Pattern? How to Draw Trendlines on a Chart Bullish Pennant pattern Bullish Flag pattern Bearish Flag pattern Rising Wedge pattern Falling Wedge pattern Triangles pattern Symmetric Triangles pattern Ascending Triangles pattern Descending Triangles pattern Cup and
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Bullish price action trading creates chart patterns that show uptrends in a market through the buying pressure by traders and investors creating higher highs and higher lows and breakouts to the upside. A bullish chart pattern is a visual record of the votes by bulls that increase price levels over a period of time. There are different
The rounding top is a bearish chart pattern in technical analysis. This pattern is formed when a chart puts in a top that forms when price curves up and then down in price. The right side of the curve will make higher highs on the left side of the move until the top price is
A consolidating stock is one that forms a trading range on its chart. A stock under consolidation will have defined resistance above price action and support below that acts as barriers to short-term movement. Stocks and markets go through different cycles of uptrends, downtrends, trading ranges, and volatility, the consolidation period is the one where
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This article is a sample chapter from my book The Ultimate Guide to Chart Patterns. Chart Facts: The Double Bottom Chart pattern is a reversal pattern that is bullish. This pattern is created when a key price support level on a chart is tested twice with a rally between the two support level tests. A double
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