What are Stock Chart Patterns?
Stocks chart patterns are chart representations of repeating stocks price action pattern formations that are commonly used in the Stocks market.
Stocks chart patterns is one of the studies used in technical analysis to help stocks traders learn how to recognize these repeating stocks chart patterns formations.
Stocks chart patterns are important in stock trading because when the stocks market is not moving in a particular direction it is forming a stocks chart pattern. It is important to know these formations so as to have an idea of what might be the next move in the stock trading market.
When stocks price movements are drawn there are several formations that occur naturally and repeat themselves over and over again. These stocks chart patterns formations are used by a lot of technical stock traders to predict the next stocks market movement.
Traders often study these stocks chart patterns formation to analyze supply and demand forces that form the basis for stocks price fluctuations of a particular stocks.
These stocks patterns are classified in to 3 different categories:
1. Reversal Trading Patterns
- Double Tops Chart Patterns
- Double Bottom Patterns
- Head & Shoulders Chart Patterns
- Reverse Head & Shoulders Chart Patterns
2. Continuation Trading Patterns
- Ascending Triangle Chart Patterns
- Descending Triangle Patterns
- Bull Flag/Pennant Patterns
- Bear Flag/Pennant Chart Patterns
3. Bilateral Stocks Trading Patterns
- Symmetric Triangle - Consolidation Chart Patterns
- Rectangle - Range Stock Chart Patterns
Reversal Patterns confirm the reversal of the stocks market stocks trend once this reversal patterns setup is confirmed. These reversal patterns are formed after extended market stocks trend either upward or downwards and these patterns signal that the stocks market stocks trend is ready to reverse.
Continuation Patterns are arrangements that set up the stocks market for a stocks trend continuation move in the direction of the prior Stocks trend. These continuation chart patterns are formed when the Stocks market is taking a pause before continuing in same direction of the previous Stocks trend.
Consolidation Patterns form when the stocks market is taking a break before deciding the next direction to take. When these consolidation patterns are formed the stocks market is trying to decide which direction to trade.
Stock Patterns Tutorials
Stock Patterns - Study of a candlesticks chart patterns
Stock Chart Patterns - Stock Chart Patterns Strategy
