In previous idea of continuation pattern, which comprise explanation of some continuation patterns like triangles, flags and pennants it
was stated that in next post I'll be back with patterns such as head & shoulder , double top and bottoms and we're back.
As we have discussed in the previous section, that market can be either in trending phase or in a...
What is descending triangle ??
The descending triangle is one of the top continuation patterns that appears mid-trend. Traders anticipate the market to continue in the direction of the larger trend and develop trading setups accordingly.
The descending triangle is a bearish pattern that is characterized by a descending upper trendline and a flat lower trendline...
Bullish flags are a continuation pattern found in stocks with a strong uptrend. As can be observed, the pattern resembles a flag
on a pole. The vertical rise forms the pole and the following period of consolidation forms the flag. The flag can be a horizontal rectangle
but mostly angles down from the pole. The focus should be more on the underlying psychology...
Bullish Flag Chart Pattern: Tata Chemicals
Description:
The flag represents a brief pause in a dynamic market move & one of the requirements for a flag pattern is that it should proceed by a sharp and almost straight-line move.
It represents situations where a step advance or decline has gotten ahead of itself, and where the market pauses briefly to "catch...
Reversal or Continuation Pattern
Rising Wedge
Prices are moving upward, forming higher highs and higher lows, but the price is confined within two lines which get closer together to create a pattern. This indicates a slowing of momentum and it usually precedes a reversal to the downside. This means that you can look for potential selling opportunities.
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