Article Cup with Handle Understanding Cup with Handle Trading Pattern Basics Introduction The Cup with Handle is a bullish continuation 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 Trading Strategy As its name …
Article Rounding Bottom Understanding Rounding Bottom Trading Pattern Basics Introduction The Rounding Bottom is a long-term reversal pattern that is best suited for weekly charts. It is also referred to as a saucer bottom, and represents a long consolidation period that turns from a bearish bias to a bullish bias. Rounding Bottom Trading Strategy Prior …
Article Head and Shoulders Bottom Understanding Head and Shoulders Bottom Pattern Basics Introduction The Head and Shoulders Bottom, sometimes referred to as an Inverse Head and Shoulders, is a reversal pattern that shares many common characteristics with the Head and Shoulders Top but relies more heavily on volume patterns for confirmation. Head and Shoulders Bottom …
Article Head and Shoulders Top Understanding Head and Shoulders Top Pattern Basics Introduction A Head and Shoulders reversal pattern forms after an uptrend, and its completion marks a trend reversal. The pattern contains three successive peaks, with the middle peak (head) being the highest and the two outside peaks (shoulders) being low and roughly equal. …
Article Gap Analysis Understanding Gap Trading Basics Introduction Price charts often have blank spaces known as gaps, which represent times when no shares were traded within a particular price range. Normally this occurs between the close of the market on one day and the next day’s open. There are two primary kinds of gaps – up …