Here is a sample chapter from my newest book The Ultimate Guide to Candlestick Chart Patterns. A candlestick is a type of chart used in trading as a visual representation of past and current price action in specified timeframes. A candlestick consists of the ‘body’ with an upper or lower ‘wick’ or ‘shadow’. Most candlestick […]
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The high tight flag pattern is one of the most bullish chart patterns that shows a strong trend followed by a trading range that could be setting up for another strong swing to the upside. It shows a chart is currently in a longer term uptrend. The high tight bull flag is a version of
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The rising wedge chart pattern can fit in the continuation or reversal category. When it is a continuation pattern it will trend up, however the slope in the wedge will be against the overall market downtrend. The rising wedge is a bearish pattern regardless of what kind of market it appears in. The rising wedge
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An exhaustion gap is a bearish reversal signal on a chart that occurs after a sharp move higher. An exhaustion gap happens near a high in price on a chart when a space forms between a closing price and a lower opening price. This pattern generally has the most meaning on a daily chart. This
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The inverted cup with handle is a reversal pattern and momentum sell short signal as it breaks down out of the ‘handle’ in the formation. It is usually a topping pattern after a strong move to the upside signaling the end of an uptrend on a chart. An inverted cup and handle chart pattern ideally
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According to Thomas Bulkowski, the best performing and also most likely to be profitable chart patterns are: bullish flags that are high and tight that breakout to the upside and complex head and shoulders top chart patterns with breakouts to the downside. His picks are based on his exhaustive research and backtesting price action on
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This post is an example of one of the chapters in my new book ‘The Ultimate Guide to Chart Patterns‘. Image by Atanas Matov Chart Facts: The bear flag pattern is a continuation pattern of the previous downtrend. A bear flag chart pattern occurs after a downtrend showing that a new price base failed to
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The Butterfly Pattern uses the identification of quantified structures on a chart that has specific and sequential Fibonacci ratio alignments that show harmonic patterns. These patterns calculate and measure the Fibonacci aspects of the price action structures to signal reversal points with good odds of success. Traders using harmonic patterns as a trading method believe that
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Price action trading creates chart patterns in the financial markets through the buying and selling of positions by traders and investors. A chart pattern is a visual record of the votes by bears and bulls around different price levels. There are different types of chart patterns. Continuation chart patterns that confirm a trend is going to
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Chart patterns are visual representations of the behaviors of buyers and sellers around different price levels. Chart patterns are bullish when a chart is making higher highs and higher lows, they are bearish when they are making lower highs and lower lows, and range bound when they have defined support and resistance levels and no
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