Chart pattern is the new thing in technical indicators

Chart patterns

1. Chart Patterns

2. Triple Top • This is a reversal pattern formed at the top of a trend. • Price bounces twice from the neckline and fails three times at the top. • Trading strategy, o Buy on break and close below the neckline on high volumes. o Stop = Average True Range (ATR) of the pair above the neckline. o Target = downward projection of the distance between the neckline and the triple top © StockStream LLP All about investments. - 9 -

3. Introduction • Chart patterns are formations that indicate either a reversal or continuation of a trend. • These can be used independently or in combination with other technical indicators to develop trading strategies. • Some of the common chart patterns are, o Head and Shoulder o Double Tops and Bottoms o Triangles, Wedges o Flags, Pennants o Rounded Tops and Bottoms - 4 -

4. Head and Shoulder • One of the most reliable reversal patterns. It is formed at the top of a trend. • The price forms a left shoulder followed by a head and right shoulder. Each time the price bounces from the neckline. • Trading strategy, o Sell on break and close below the neckline on high volumes. o Stop = Average True Range (ATR) of the pair above the neckline. o Target = downside projection of the distance between the neckline and the head © StockStream LLP All about investments. - 5 -

5. Inverted Head and Shoulder • It is similar to the Head and Shoulder pattern but formed at the bottom of a trend. • The price forms a left shoulder followed by a head and right shoulder. Each time the price fails at the neckline. • Trading strategy, o Buy on break and close above the neckline on high volumes. o Stop = Average True Range (ATR) of the pair below the neckline. o Target = upside projection of the distance between the neckline and the head © StockStream LLP All about investments. - 6 -

6. Chart Patterns

7. Introduction • Chart patterns are formations that indicate either a reversal or continuation of a trend. • These can be used independently or in combination with other technical indicators to develop trading strategies. • Some of the common chart patterns are, o Head and Shoulder o Double Tops and Bottoms o Triangles, Wedges o Flags, Pennants o Rounded Tops and Bottoms - 4 -

8. Head and Shoulder • One of the most reliable reversal patterns. It is formed at the top of a trend. • The price forms a left shoulder followed by a head and right shoulder. Each time the price bounces from the neckline. • Trading strategy, o Sell on break and close below the neckline on high volumes. o Stop = Average True Range (ATR) of the pair above the neckline. o Target = downside projection of the distance between the neckline and the head © StockStream LLP All about investments. - 5 -

9. Introduction • Chart patterns are formations that indicate either a reversal or continuation of a trend. • These can be used independently or in combination with other technical indicators to develop trading strategies. • Some of the common chart patterns are, o Head and Shoulder o Double Tops and Bottoms o Triangles, Wedges o Flags, Pennants o Rounded Tops and Bottoms - 4 -

10. Head and Shoulder • One of the most reliable reversal patterns. It is formed at the top of a trend. • The price forms a left shoulder followed by a head and right shoulder. Each time the price bounces from the neckline. • Trading strategy, o Sell on break and close below the neckline on high volumes. o Stop = Average True Range (ATR) of the pair above the neckline. o Target = downside projection of the distance between the neckline and the head © StockStream LLP All about investments. - 5 -

11. Inverted Head and Shoulder • It is similar to the Head and Shoulder pattern but formed at the bottom of a trend. • The price forms a left shoulder followed by a head and right shoulder. Each time the price fails at the neckline. • Trading strategy, o Buy on break and close above the neckline on high volumes. o Stop = Average True Range (ATR) of the pair below the neckline. o Target = upside projection of the distance between the neckline and the head © StockStream LLP All about investments. - 6 -

12. Chart Patterns

13. Head and Shoulder • One of the most reliable reversal patterns. It is formed at the top of a trend. • The price forms a left shoulder followed by a head and right shoulder. Each time the price bounces from the neckline. • Trading strategy, o Sell on break and close below the neckline on high volumes. o Stop = Average True Range (ATR) of the pair above the neckline. o Target = downside projection of the distance between the neckline and the head © StockStream LLP All about investments. - 5 -

14. Inverted Head and Shoulder • It is similar to the Head and Shoulder pattern but formed at the bottom of a trend. • The price forms a left shoulder followed by a head and right shoulder. Each time the price fails at the neckline. • Trading strategy, o Buy on break and close above the neckline on high volumes. o Stop = Average True Range (ATR) of the pair below the neckline. o Target = upside projection of the distance between the neckline and the head © StockStream LLP All about investments. - 6 -

15. Double Top • Reversal pattern formed at the top of the trend. • Price forms two tops at the same level and then breaks below the neckline. • Trading strategy, o Sell on break and close below the neckline on high volumes. o Stop = Average True Range (ATR) of the pair above the neckline. o Target = downside projection of the distance between the neckline and the double top © StockStream LLP All about investments. - 7 -

16. Double Bottom • Reversal pattern formed at the bottom of the trend. • Price forms two bottoms at the same level and then breaks above the neckline. • Trading strategy, o Buy on break and close above the neckline on high volumes. o Stop = Average True Range (ATR) of the pair below the neckline. o Target = upward projection of the distance between the neckline and the double bottom © StockStream LLP All about investments. - 8 -

17. Triple Top • This is a reversal pattern formed at the top of a trend. • Price bounces twice from the neckline and fails three times at the top. • Trading strategy, o Buy on break and close below the neckline on high volumes. o Stop = Average True Range (ATR) of the pair above the neckline. o Target = downward projection of the distance between the neckline and the triple top © StockStream LLP All about investments. - 9 -

18. Introduction • Chart patterns are formations that indicate either a reversal or continuation of a trend. • These can be used independently or in combination with other technical indicators to develop trading strategies. • Some of the common chart patterns are, o Head and Shoulder o Double Tops and Bottoms o Triangles, Wedges o Flags, Pennants o Rounded Tops and Bottoms - 4 -

19. Head and Shoulder • One of the most reliable reversal patterns. It is formed at the top of a trend. • The price forms a left shoulder followed by a head and right shoulder. Each time the price bounces from the neckline. • Trading strategy, o Sell on break and close below the neckline on high volumes. o Stop = Average True Range (ATR) of the pair above the neckline. o Target = downside projection of the distance between the neckline and the head © StockStream LLP All about investments. - 5 -

20. Inverted Head and Shoulder • It is similar to the Head and Shoulder pattern but formed at the bottom of a trend. • The price forms a left shoulder followed by a head and right shoulder. Each time the price fails at the neckline. • Trading strategy, o Buy on break and close above the neckline on high volumes. o Stop = Average True Range (ATR) of the pair below the neckline. o Target = upside projection of the distance between the neckline and the head © StockStream LLP All about investments. - 6 -

21. Chart Patterns

22. Introduction • Chart patterns are formations that indicate either a reversal or continuation of a trend. • These can be used independently or in combination with other technical indicators to develop trading strategies. • Some of the common chart patterns are, o Head and Shoulder o Double Tops and Bottoms o Triangles, Wedges o Flags, Pennants o Rounded Tops and Bottoms - 4 -

23. Head and Shoulder • One of the most reliable reversal patterns. It is formed at the top of a trend. • The price forms a left shoulder followed by a head and right shoulder. Each time the price bounces from the neckline. • Trading strategy, o Sell on break and close below the neckline on high volumes. o Stop = Average True Range (ATR) of the pair above the neckline. o Target = downside projection of the distance between the neckline and the head © StockStream LLP All about investments. - 5 -

24. Inverted Head and Shoulder • It is similar to the Head and Shoulder pattern but formed at the bottom of a trend. • The price forms a left shoulder followed by a head and right shoulder. Each time the price fails at the neckline. • Trading strategy, o Buy on break and close above the neckline on high volumes. o Stop = Average True Range (ATR) of the pair below the neckline. o Target = upside projection of the distance between the neckline and the head © StockStream LLP All about investments. - 6 -