Every year when preparing for the annual ChartPattern.com stock trading conference, I have a chance to look back on which trades worked best over the past year and what trends are emerging for the year ahead.
Throwbacks and pullbacks are not new to securities, but if you don’t understand how price behaves, a losing trade may result.
Technical Analysis is one of the oldest tools for making trading decisions. At its core, it’s simply analyzing the price and volume of the instrument you are trading.
The cup part of the pattern resembles a rounding bottom in the shape of a U. It is followed by a handle that has a slight downward slant and acts as a final consolidation before a breakout.
A popular and reliable continuation chart pattern. The flag resembles a parallelogram, or rectangle that slopes against the prevailing trend. The flag represents a minor consolidation or pause in a price trend that takes place before the prior trend resumes. See also: Pennant
The ascending triangle is a bullish chart pattern. The triangle is formed by two converging trendlines, where the lower line is rising and the upper line is flat. The price breaking through the horizontal resistance level depicted by the flat trendline is considered a buy signal.
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.