Price range is narrowing now forming a rising wedge pattern. Rising wedge is a bearish pattern. Price range is wide in the bottom and narrows when price moves higher. Volume will decline as prices rise and the price action forms a wedge. Price will fall when the support is broken.
A list of common Price Breakout Patterns occur in all financial markets.
I will publish in future (when time permits) their description about them : "How they Form " How to Use Them" and what it signals
One thing is SOUND & CLEAR is - TREND is FRIEND
Cheers
Hello Traders,
All of us want the price action to follow our direction of trade but that doesn't happen always. The price action has a natural tendency to move up and down; build ranges and develop patterns. Most of the ranges and patterns are like whipsaws and many traders stuck in these situations and lose money. The most effective ways to deal with such a...
Dear Traders,
Teach you about the "Principles of Triangle Pattern". There are 3 types of triangle patterns available.
Symmetric Triangle
Ascending Triangle
Descending Triangle
Symmetric Triangle - It is continuous and neutral trend of the price, may break either side of the triangle. Need to confirm the trade with breakout and as well with trend...
Sensex hits a historical high -32000 mark.
Do you remember bullish deep crab - No. Then definitely you remember 9643- No, Aha, then surely you must have used Killroy Pattern (Inverse Head & Shoulder) to your advantage - isn't that. Cheers to the Bulls.
What is Killroy
Killroy or Inverse Head & Shoulder Pattern as termed by "Edwards & Magee in Bible book-...
cup and handle pattern-
The Cup with Handle is a bullish continuation chart pattern that marks a consolidation period followed by a breakout.It was developed by William O'Neil and introduced in his 1988 book, How to Make Money in Stocks.
cup with handle is a chart pattern that has a well defined horizontal boundaries breakouts from chart pattern with horizontal...
PNB has recently given multi year breakout above 169 and also made 52 week highs. Stock is trading above all DMA's . With favorable policies coming from the government for the PSU banks related to bankruptcy codes, mergers etc , many of them can be good trading bets.
The Cup & Handle pattern is one the most common and favorite patterns among the traders. It is another time-tested pattern that has created valuable gains for traders and investors. It is known as a bullish continuation pattern and resembles the shape of a tea cup on a chart.
Plot: First, it's important that there is an upward trend before the formation of the...
This is an interesting educational post which I observed last week while analysing charts that were showing Head n Shoulder Patterns. I thought of relating it to the Elliott Waves Theory and found out some similarities in their pattern formation. I have displayed both the pattern formation and indicated WHEN & HOW TREND CHANGES once such patterns are formed.
H&S...
These are continuation trend pattern that are found frequently in the markets. I wanted to cover it and share it with you as I found some good charts during my research that are forming such patterns. One of them is Aban offshore, chart link attested below. (I have also provided some examples given in comments box below for your references and goodself.)
There...
This is the second education series on Channel (link of Education 01 given below),
In this educational post, I cover up points that validate a Channel and benefits of drawing a right channel.
Validation points are as follows:
Point 1: Two Parallel lines
Point 2: Higher High and Higher Lows in Uptrend and Vice-versa.
Point 3: Two compulsory touch points in...
