How the Price Channel Pattern Works
Used by traders for technical analysis-based trading, a price channel is a continuation pattern in which the price bounces between parallel resistance and support lines. The resistance and support lines
How the Rounding Bottom Pattern Works
Rounding bottom pattern sometimes knows as a “saucer bottom” pattern, is known for being able to predict long term upward trend. Very similar to the cup and handle pattern, only
How the Inverse Head and Shoulders Pattern Works
Another trend reversal chart is the inverse head and shoulders, also known as a head and shoulders bottom stock chart pattern. This technical analysis indicator is similar to the standard
How the Head and Shoulder Top Pattern Works
A head and shoulders top pattern is one that has three peaks and looks like a head and shoulders because the two outside peaks are similar in height, yet shorter
How the Pennant Pattern Works
Traders pay close attention to pennants and flags when trading. Both are very similar in terms of structure, and it may take some practice before an investor can readily tell
How the Flag Pattern Works
Flag patterns are similar to the pennant pattern but are often smaller. This technical analysis tool offers traders the benefit of a low-risk investment associated with quick profits. Flags appear
How the Falling Wedge Pattern Works
The falling wedge pattern is a bullish pattern that begins wide at the top and continues to contract as prices fall. As with the rising wedges, trading falling wedge is
How the Double Top Pattern Works
The double top pattern is a twin-peak chart pattern representing a bearish reversal in which the price reaches the same levels twice with a small decline in between the two
How the Double Bottom Pattern Works
When using technical analysis, the double bottom pattern indicates a long term or intermediate reversal in the overall trend. It is defined by a price drop in a stock or