Technical analysis is a method of predicting price movements and future market trends by studying charts and price history. The technical method is based on three basic assumptions:
- Market action discounts everything
- History repeats itself.
- Prices move in trends
Learning to recognize price chart patterns is an essential part of trading.
The two most popular chart patterns are reversals and continuations. A reversal pattern usually signals that a prior trend will reverse upon completion of the pattern, while a continuation pattern most often signals that the trend will continue once the pattern is complete.
In a broader sense, every group of either bar or candlesticks charts gives us an insight into the bigger picture. Once understood, chart patterns can be the key to unlocking where the market potential may be heading.
In technical analysis, there are three types of Reversal Patterns: Head and Shoulders; Double Tops and Double Bottom Reversal; Triple Tops and Triple Bottom Reversal patterns.
Learn to recognize price chart patterns.
Understanding reversal patterns
See bigger picture through chart and reversal patterns.
Beginner and Intermediate level trading professionals.