Wedges are a multiple price wave reversal pattern. Wedges form when the waves of an asset move within a narrowing range, angled either up or down. Whereas triangles are formed by the price moving side...
Flags and pennants are continuation patterns. They are traded in the same way, but each has a slightly different shape. The terms flag and pennant are often used interchangeably. A flag or pennant pat...
The triangle can be a continuation or a reversal pattern. Although, more often it is a continuation pattern. There are three types of triangles: symmetric, ascending, and descending. For trading purpo...
Double tops and bottoms are reversal patterns. A double top signals the price is no longer rallying, and that lower prices are potentially forthcoming. A double bottom indicates the price is no longer...
The cup and handle is both a continuation and a reversal pattern. The reversal pattern marks the end of a downtrend, and shows the price transitioning into an uptrend. The continuation pattern occurs ...
The head and shoulders (HS) is a reversal pattern signaling the prior trend is reversing, or has already reversed. The HS top alerts traders that an uptrend is over and the price could head lower, whi...
The size of a chart pattern, and where it occurs within a trend, provides clues as to how big the next price move will be once the chart pattern completes. When the price finally breaks out of the cha...
Technical traders use the price history of any asset, and the price patterns that form, as a basis for making trading decision and analysis. This is called technical analysis, a technique that uses th...
Scalping is a trading strategy geared towards profiting from minor price changes in a stock’s price. Traders who implement this strategy place anywhere from 10 to a few hundred trades ...
A day trader executes short and long trades to capitalize on intraday market price action resulting from temporary supply and demand inefficiencies. BREAKING DOWN Day Trader A day trader often closes ...