Stock Market Basics to Advance : Lecture 9 (Part 1 : Chart Pattern)
Chart Pattern:
There are different types of chart pattern which
suggests market’s further trend. Majorly chart pattern are categorized into
three types then again sub divided.
A) Continuous
pattern
B) Reversal Pattern
C) Bilateral Pattern
Again, above chart patterns having sub charts. Will see how they
categorized.
|
Continuous Pattern |
Reversal Pattern |
Bilateral Pattern |
|
Flag Pattern - Bullish
Flag - Bearish
Flag |
Double
- Top & Bottom Pattern |
Triangle Pattern |
|
Pennant
Pattern - Bullish
Pennant - Bearish
Pennant |
Tripple
- Top & Bottom Pattern |
Wedge
Pattern |
|
Cup
and Handle Chart Pattern |
Head
& Shoulder Chart
Pattern |
Channel
Pattern |
|
Inverted
Cup & Handle Chart Pattern |
Inverted
Head & Shoulder Chart Pattern |
|
A) Continuation Pattern:
- A continuation pattern is that a price trend in markets will continue even after the pattern completes.
- That means price continues uptrend to uptrend or downtrend to downtrend
1. Flag
and Pole Pattern
Rules
- First check previous history / trend of chart.
- Support and resistance are parallel
- Maximum 2 to 4 points at support and resistance
a a) Bullish Flag & Pole Pattern
- Previous uptrend
- Structure look like flag and pole
- Entry made after breakout of channel
b) Bullish Flag & Pole Pattern
- Previous downtrend
- Structure look like flag and pole
- Entry made after breakout of channel
Stock Market Basics to Advance : Lecture 9 (Part -1 : Chart Pattern)
2.
Pennant Pattern:
A pennant pattern is a technical analysis chart pattern that forms
after a substantial price movement in either direction.
Rules
- Check previous history / trend of chart
- Maximum 2 to 4 points on Support and Resistance
- Support and Resistance line meet at one point with each other and then break out is expected on either side
a) Bullish Pennant Pattern
b) Bearish Pennant Pattern
3. Cup and handle pattern
- The cup and handle pattern is a bullish
pattern, once the pattern is formed then there are chances for the stock price
to rise.
- It form structure like cup and handle so
called as Cup and handle pattern, after formation of pattern break out is
expected.
4.
Inverted Cup and Handle Pattern
- The Inverted Cup and Handle pattern is a bearish pattern, once the pattern is formed then there are chances for the stock price to fall.
- It form structure like inverted cup and
handle so called as inverted Cup and handle pattern, after formation of pattern
break down is expected.
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