Category: Chart Patterns

What are Chart Patterns?

In this chapter, we take a look at certain chart patterns to help you spot the next breakout possibility. All of the chart patterns we highlight are what you will most likely hear the most about in the stock forums you frequent. Chart Patterns :...

Symmetrical Triangle

The Symmetrical Triangle chart pattern is formed when a stock’s highs and lows converge together to form a triangle shape. Therefore, the stock is having less and less price fluctuation. This is a stand off with the buyers and sellers. The Symmetrical Triangle pattern is...

Reverse Head and Shoulders Pattern

Also called an Inverse Head and Shoulders Pattern.  This is a mirrored version on the standard Head and Shoulders pattern, the Reverse Head and Shoulders pattern is formed with an initial valley (first shoulder), followed by a lower valley (the head) and finally a higher...

Head and Shoulders

The Head and Shoulders pattern is classified as a reversal formation. The Head and Shoulder pattern can be seen in a chart when it has formed a peak (first shoulder), followed by a higher peak (the head) and a final lower peak (second shoulder). After identifying the head...

Double Bottom Pattern

The Double Bottom Pattern is formed when a stock’s price falls to a support level once, bounces off and then falls right back down to the same support level. Therefore, usually within a short time span, a stock hit two lows of nearly the same price. The Double...

Double Top Pattern

The Double Top Pattern is formed when a stock’s price climbs to a resistance level once, bounces off and then climbs right back the same resistance level. Therefore, usually within a short time span, a stock hit two highs of nearly the same price. The...

Descending Triangle

Reverse all that we wrote about the Ascending Triangle Pattern and you have the Descending Triangle Pattern. This means, that the Descending Triangle Pattern is formed when the stock is showing strong support at a given low, but it is having lower and lower highs. The struggle between sellers and...

Ascending Triangle

The Ascending Triangle Pattern is formed when a chart has higher and higher lows with a resistance level it cannot break through. This is commonly a battle being fought hard by the buyers of a stock. The stock’s intraday highs are not increasing, but its average intraday...