Stock Trading Strategies > Technical Analysis 

Basics of Chart Patterns

Technical analysis is the study of historical price performance in an effort to predict future price performance.  Price is a very important statistic in the world of technical analysis because it is the only accurate measure of investor sentiment -- it is the intersection of supply and demand.

• Price Is Not Random - Here's Why

• Price Anticipates Fundamental Changes

• The Relationship Between Price and Time

• Support and Resistance

  • Support and Resistance In An Uptrend

  • Support and Resistance In A Flat Base

  • Support and Resistance In A Down Trend

• Importance of Volume

  • Importance of Volume in Trends

  • Importance of Volume in Consolidations

  • Importance of Volume in Breakouts

Chart Patterns - Reversals

Stocks go up and they go down, that is common sense but did you know that in most cases the actual reversal is easily detected?

Although the fundamental and technical factors that lead to reversals may be varied, every stock price reversal is ultimately the result of one of two themes,  distribution or accumulation.  In this section we seek to understand accumulation and distribution patterns and the signs of impending reversal.  Below are some of the most trusted patterns.

• One Day Reversal Chart Pattern

• Double Top Chart Pattern

• Double Bottom Chart Pattern

• Diamond Chart Pattern

• Rising Wedge Chart Pattern

• Island Reversal Chart Pattern

• Triple Top Chart Pattern

• Head and Shoulders Bottom Chart Pattern

• Rounding Top Chart Pattern

• Falling Wedge Chart Pattern

• Triple Bottom Chart Pattern

• Head and Shoulders Top Chart Pattern

• Rounding Bottom Chart Pattern

• Broadening Top Chart Patterns

Chart Patterns - Continuation

In the first part of this section we learned that stocks can either consolidate or they can trend.  In the second section we discovered that some trending patterns lead to predictable reversals.  In this section we are going to examine consolidation patterns that lead to a continuation of the existing trend.  As we will soon discover, continuation patterns can be among the most powerful of all technical patterns because they usually lead to spectacular and very low risk trading opportunities.  Listed below are some of the most trusted patterns.

• Cup With Handle Chart Pattern

• Descending Triangle Chart Pattern

• Bullish Pennants

• Continuation Rising Wedge Chart Pattern

• Chart Patterns - Rectangle

• Bear Flags

• Ascending Right Angle Triangle

• Bull Flags

• Bearish Pennants

• Symmetrical Triangle Chart Pattern

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