Monday, August 08, 2011

Chart Patterns Sheet

Three types of chart patterns

Like we promised, here's a neat little cheat sheet to help you remember all those chart patterns and what they signal.
We've listed most of the chart patterns, when they are formed, what type of signal they give, and what the next price move will be. Check it out!

Chart PatternForms DuringType of SignalNext Move
Double TopUptrendReversalDown
Double BottomDowntrendReversalUp
Head and ShouldersUptrendReversalDown
Inverse Head and ShouldersDowntrendReversalUp
Rising WedgeDowntrendContinuationDown
Rising WedgeUptrendReversalDown
Falling WedgeUptrendContinuationUp
Falling WedgeDowntrendReversalUp
Bearish RectangleDowntrendContinuationDown
Bullish RectangleUptrendContinuationUp
Bearish PennantDowntrendContinuationDown
Bullish PennantUptrendContinuationUp

You also might want to add this page to your bookmarks in case you need to double-check those chart patterns' signals before you risk your hard-earned cash on a trade.
You never know when you're gonna need to cheat, hah! Bookmark this thing yo!

As you probably noticed, we didn't include the triangle formations (symmetrical, ascending, and descending) in this cheat sheet.

That's because these patterns can form either on an uptrend or downtrend and can signal either a continuation or reversal.

Like we mentioned, it's tough to tell where the price will breakout.
What's important is that you have your entry orders ready so that you can be part of the action either way!

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