Category: 2. Classic Patterns 11 to 20

What is the Rectangle pattern? The rectangle formation is a classical technical analysis pattern shown by horizontal lines describing important support and resistance. Traders can successfully trade it by buying at support and selling at resistance levels. They can also wait for a breakout from the formation and making use of the measuring principle. This continuation pattern forms as…

What is the Triple Bottom pattern? The Triple Bottom chart pattern is used in technical analysis. It’s characterized by three equal lows followed by a breakout above the resistance level. Typically, the pattern follows a prolonged downtrend where bears are controlling the trading market. While the first bottom could simply be normal price movement, the second…

What is the Pennant pattern? Some traders use the pennant pattern as an entry pattern for continuing a current trend. It usually forms after a sharp price movement that can contain gaps (referred to as the mast or pole of the pennant). The pennant represents a time of indecision in the middle of the complete move, consolidating…

What is the Falling Wedge pattern? Falling wedge has distinctives characteristics The falling wedge chart pattern is a recognizable price move. It is created when a market consolidates between two converging support and resistance lines. To create a falling wedge, the support and resistance lines have to both point in a downwards direction. The resistance line…

What is the Inverse Head and Shoulders pattern? An inverse head and shoulders (iH&S), also called upside-down head and shoulder pattern or head and shoulders bottom, is similar to the head and shoulders pattern, but inverted. The head and shoulders top used to predict downtrend reversals. This pattern is a trend reversal chart pattern. IH&S confirms when the…

What is the Head and Shoulders pattern? The head and shoulders pattern is a chart figure that has a reversal character. As you can imagine, the name of the pattern comes from the visual characteristic of the pattern. It appears in the form of two shoulders and a head in between. The pattern begins with…