The broadening formation is a kind of triangle, but not usually included with the three previous examples. That is because it behaves totally differently to the others. As the name tells you, this triangle is the other way round...
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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...
Ascending Triangle
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...
Symmetrical Triangle
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...
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...
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...
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...
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...
Complex, Failed and Inverse Head and Shoulders
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...
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. Reversal Patterns:...