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Chart Pattern

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20 views

Chart Pattern

Uploaded by

dajjal949
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd
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Chart Pattern

1. Descending Triangle (Expanding): This pattern has a descending upper trendline


with lower lows, but its lower trendline is expanding rather than flat, indication
broader price swings. This pattern may signal a breakdown. This pattern may signal
a breakdown or a continuation of a downtrend.

2. Ranging Channel: Prices move horizontally within a defined range, bouncing


between upper resistance and lower support. This is often a neutral pattern showing
indecision in the market without a clear trend.

3. Descending Channel: A downward-sloping channel where prices form lower highs and
lower lows, signaling a downtrend. Traders often look to sell at the top of the
channel or buy at the bottom for shot-term trades.

4. Ascending Triangle (Expanding): Features a flat upper resistance line with a


lower support line that's ascending. Unlike the typical contracting ascending
triangle, this expanding form indicates broader swings, usually suggesting an
upward breakout potential.

5. Ascending Channel: An upward-sloping channel where prices from higher highs and
higher lows, indicating an uptrend. Traders may buy near support or sell near
resistance for short-term opportunities.

6. Rising Wedge (Contracting): This pattern has converging trendlines, with both
the upper resistance and lower support lines sloping upwards. It's typically
bearish, suggesting a potential reversal to the downside.

7. Diverging Triangle (Symmetrical): Often called a broadening formation, this


triangle has trendlines that diverge. It indicates increased volatility and
indecision in the market, with no clear direction until a breakout occurs.

8. Ascending Triangle (Contracting): A bullish pattern with a flat upper trendline


and ascending lower trendline. It suggests demand outweighs supply, typically
leading to an upward breakout.

9. Falling Wedge (Contracting): Formed with two downward-sloping converging


trendlines. This pattern is generally bullish, as it signals that selling pressure
is decreasing, which could lead to a reversal to the upside.

10. Falling Wedge (Expanding): Similar to the contracting version but with
diverging trendlines, indicating a broadening breakout, often seen as a reversal
pattern.

11. Descending Triangle (Contracting): A bearish pattern with a flat lower support
line and descending upper resistance, suggesting a buildup of selling pressure and
often leading to a downward breakout.

12. Converging Triangle: This pattern has converging trendlines, often forming a
symmetrical triangle. It can be bullish or bearish depending on the direction of
the breakout, showing consolidation with potential for a breakout in either
direction.

13. Diverging Triangle (Broadening Formation): This pattern reflect increasing


volatility and traders are uncertain about the direction. Diverging triangles can
appear in both uptrends and downtrends, but they do not give a clear directional
bias until a breakout occurs.
14. Rising Wedge (Expanding): This pattern typically signals a potential bearish
reversal. as it reflects weakening momentum despite the price moving higher. The
expanding nature of the wedge suggests increased volatility and uncertainty. Buyers
push prices to new highs, but the strength behind these moves is often
unsustainable, leading to a potential breakdown. Wait for a decisive move below the
lower trendline to confirm a bearish reversal.

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