Chart patterns Reveresal patterns Continuation patterns
Trading stocks chart patterns

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Reversal & Continuation Chart Patterns * Stock Charts Trading Analysis

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Trading Stocks - Chart Patterns

Learning to recognize price chart patterns is an important part of trading. But it is also important to observe deviations from "standard" patterns and to know which are important. For example

- Lower tops and lower bottoms bounded by two parallel trendlines with the pattern slanting against the prevailing trend characterize bullish flag. However, this is not an essential requirement, as 25% of the observed patterns slope horizontally, or in the same direction as the prevailing trend.
- The volume trend is of critical importance in assessing the validity of the patterns, as 85% of the formations had declining volume over the development of the formation.

Continuation Chart Patterns Continuation Chart Patterns :

¤Ascending Triangle
¤Bull Flag Patterns
¤Bullish Pennant Patterns
¤Cup With Handle
¤Symmetrical Triangle
¤Bear Flag Patterns
¤Bearish Pennant Chart
¤Descending Triangle
¤Rectangle Chart Patterns
¤Rising Wedge Patterns
¤Price Channel Patterns
Reversal Chart Patterns

Reversal Chart Patterns :

¤Double Bottom Chart
¤Falling Wedge Patterns
¤Head & Shoulders Bottom
¤Rounding Bottom Chart
¤Triple Bottom Patterns
¤Broadening Top Chart
¤Diamond Top Patterns
¤Double Top Chart
¤Head & Shoulders Top
¤Island Reversal Patterns
¤One Day Reversal

¤Rising Wedge
¤Rounding Top
¤Triple Top Patterns

Sector & Chart Analysis Charts of the Week Trading Ideas

Recent Picks / Trading Ideas
Daily Market Commentary
Holding... - Dow pulls back from 12,700, closes lower by 45 points ...
Free Trading Videos - Swing Trading - Futures Trading - Forex Trading - March 2008
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Stock Picks - Long and Short Potential Swing Candidates: Force Swings, Triangle, Revival ...
Dillard's Inc - DDS - Descending trendline March 6
DDS: the recent rally became exhausted as it neared the resistance of the descending trendline which is also an area that will continue to prevent agressive moves higher ...
ADTRAN Inc - ADTN - Symmetrical triangle February 27
ADTN - broke out of a symmetrical triangle and now looks poised to fall to a significant support ...
Altria Group Inc - MO - Long-term ascending trendline February 20
MO - is testing the support of a long-term ascending trendline. The trendline has propped up the price of the stock in the past ...
MetLife Inc - MET - Lower highs February 14
MET - trading near a significant level of resistance. The 50-day MA has prevented the stock from moving higher in the past and there is no reason to expect this story to change now ...
Autodesk Inc - ADSK November 29
ADSK: Fibonacci Fan indicator is suggesting that the stock is getting ready to make a short-term move higher ...
El Paso Corp - EP - Ascending trendline Nov 21
EP - Stock is trading near a long-term ascending trendline that has propped up the price since early 2003 ...
Video Debunks Wall Street Myth November 2007
Video that Debunks trading myth that could cause your portfolio to tank if you fall for it ...

Price is Everything - Chart Patterns

Technical analysis is the study of historical price performance in an effort to predict future price performance (chart patterns). Price is the only accurate measure of investor sentiment -- it is the intersection of supply and demand. Investor sentiment is at least and possibly a more important determinant of price than fundamental factors like earnings, revenues and profit margins.

There are three important principles that govern all technical analysis. First, price is NOT random, second, price anticipates fundamental change and third, the relationship between price and time is linear. This is why stock price moves can be viewed as patterns on price chart.

Different strategies have varying degrees of success depending upon where the market is in a bigger time frame. Technical analysis of a strong uptrending market will show that basing patterns are frequently broken to the upside forming a "stair-step" chart patterns. This is a strong chart pattern in a strong market. However the same trader who continues to use this pattern without recognizing that the market has now lost momentum and is in a basing phase will not have the same success. Traders will find that breakouts do not carry as far and that many breakouts start to fail and become losses.

»»» Trading Strategies Guide

NASDAQ Chart of the Day
with Jeff Drake

UTIW has traded within the boundaries of a clear, downtrending channel over the last 14 months. The stock is now holding at the upper boundary of the pattern at 21.60. Watch this zone for a breakout or another drop back toward the bottom of the range.


Uti Worldwide Inc   April 2, 2008

Daily Market Commentary & Charts of the Day courtesy of Nirvana Systems
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