Chart Pattern Review

Head and Shoulders Pattern In technical analysis, a chart formation that resembles a human head and shoulders and is generally considered to be predictive of a price reversal. Double Top Pattern A technical analysis term for a chart pattern displaying two prominent peaks, where price has risen to the same price level twice. Double Bottom … Read more

Island Reversal

A reversal chart pattern that occurs when a security gaps up (or down), then trades higher (or lower) that the gap for a while, and then gaps down (or up) below the initial price.

Double Top

A technical analysis term for a chart pattern displaying two prominent peaks, where price has risen to the same price level twice. This price level is considered to constitute resistance. The opposite of double bottom.

Double Bottom

The Double Bottom is a reveral chart pattern that occurs when, during a downtrend, the market makes two lows at the same level. The first trough marks the low of the prior downtrend. This low is followed by an advance of typically 10-20%. The price then retraces back to the low where it finds support … Read more

Descending Triangle

Above: A Descending Triangle in USD/JPY on the daily chart. Chart courtesy of Oanda. A sideways chart pattern where two price trendlines, the bottom one horizontal and the top one sloping down, form a triangle pattern. Descending Triangles are commonly interpreted as bearish continuation patterns. See also: Ascending Triangle