Image via Colibri Trader Chart Facts: The bear pennant is a continuation chart pattern of the previous downtrend. A pennant pattern is very similar to a flag pattern except a flag is rectangular and descending and a pennant is triangular. A bear pennant chart pattern occurs after a downtrend out of a previous price base. …
A two-legged pullback to the 20-period exponential moving average is a high probability trade entry set up inside a strong uptrend for buying a dip in price action. It can also be a short selling opportunity on a rally back to the 20-EMA during a downtrend in price action. Any candle that goes higher than …
The rounding top chart pattern is a bearish reversal that occurs after an uptrend on a chart. The rounded top is formed after an uptrend in price action stalls out near a peak and goes sideways into a range before slowly going lower to create lower highs and lower lows. The pattern forms a downward …
Wyckoff Theory Wyckoff Method Richard Wyckoff was a famous trader, author, and technician from the 1920s. He founded the Wyckoff Stock Market Institute to study technicals and market price action. He developed a market model for a way of looking at the patterns that accumulation and distribution create on charts. Wyckoff Pattern A Wyckoff Spring …
Cryptocurrency Chart Patterns Cryptocurrency price action creates chart patterns like any other market. The patterns formed are simply visual representations of the prices buyers and sellers bought and sold a token at in the past. There is no magic in chart patterns they just show what happened in the past and what has a higher …
Guide to Chart Patterns Price action creates chart patterns in the financial markets through the buying and selling of positions by traders and investors. A chart pattern is a visual record of the votes by bulls and bears at different price levels. A chart pattern is simply a visual representation of the prices buyers and sellers bought …
The M chart pattern is a double top pattern with tall sides with big uptrends before and long downtrends after the M. Price action many times approaches the low of the original left side launch area of the chart where the trend started before putting in a low and swinging higher. Chart Facts: The M …
The reverse cup with handle is a reversal pattern and momentum sell short signal as it breaks down out of the ‘handle’ in the formation. It is usually a topping pattern after a strong move to the upside signaling the end of an uptrend on a chart. A reverse cup and handle chart pattern ideally …
The bullish wedge pattern shows price action falling in a downswing but breaks its descending upper resistance trend line to reverse higher into an uptrend. The falling wedge pattern can fit in the continuation or reversal category. When it is a continuation pattern it will trend down, however the slope in the wedge will be …
A W pattern is a double bottom chart pattern that has tall sides with a strong trend before and after the W on the chart. The W chart pattern is a reversal pattern that is bullish as a downtrend holds support after the second test and rallies back higher. This pattern is created when a …
