Article Flag and Pennant Understanding Flag and Pennant Trading Pattern Basics Introduction Flags and Pennants are short-term continuation patterns that mark a small consolidation before the previous move resumes. These patterns are usually preceded by a sharp advance or decline with heavy volume, and mark a midpoint of the move. Flag and Pennant Trading Strategy A …
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 Triple Bottom Reversal Understanding Triple Bottom Reversal Trading Pattern Basics Introduction The Triple Bottom Reversal is a bullish reversal pattern typically found on bar charts, line charts and candlestick charts. There are three equal lows followed by a break above resistance. As major reversal patterns, these patterns usually form over a 3- to 6-month period. …
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 Falling Wedge Understanding Falling Wedge Trading Pattern Basics Introduction The Falling Wedge is a bullish pattern that begins wide at the top and contracts as prices move lower. This price action forms a cone that slopes down as the reaction highs and reaction lows converge. In contrast to symmetrical triangles, which have no definitive …