EDUCATION: The most common model patterns!
Hello traders, I present to you a few candlestick patterns that appear frequently and have a fairly large win rate.[/I]
CUP AND HANDLE
The cup and handle pattern on the price chart resembles a cup with a handle, where the cup is U-shaped and the handle slopes down slightly.
The cup forms after moving upwards and looks like a bowl or round bottom. When the cup is completed, a narrow price range develops on the right side and a handle is formed. A subsequent breakout of the trading range forms the handle indicating a continuation of the previous upward move.
PENNANT PATTERN
This is a type of continuation pattern that forms when there is a major move in the market, known as a flagpole, followed by a period of consolidation with converging trendlines, pennants, and finally a move. breaks in the same direction, like the original move, representing the second half of the flagpole.
FLAG
The flag pattern is used to determine the possibility of a continuation of a previous trend from a point where the price has drifted in the same trend. If the trend continues, the price could rise rapidly, making it an advantageous time to trade using a flag pattern. If you think you've seen a flag to trade, the most important thing is a fast and steep price trend.
If the price slowly rises and falls below the flag, you should not trade at that time.
DOUBLE BOTTOM
The trajectory of the price line during the formation of the pattern resembles the letter "W". The last two price lows, located approximately the same, are a strong support zone where two price reversals are made to the upside.
When the market price breaks through the resistance level of the pattern, the formation of the pattern is complete. The BUY signal appears and the trend will change.
CUP AND HANDLE
The cup and handle pattern on the price chart resembles a cup with a handle, where the cup is U-shaped and the handle slopes down slightly.
The cup forms after moving upwards and looks like a bowl or round bottom. When the cup is completed, a narrow price range develops on the right side and a handle is formed. A subsequent breakout of the trading range forms the handle indicating a continuation of the previous upward move.
PENNANT PATTERN
This is a type of continuation pattern that forms when there is a major move in the market, known as a flagpole, followed by a period of consolidation with converging trendlines, pennants, and finally a move. breaks in the same direction, like the original move, representing the second half of the flagpole.
FLAG
The flag pattern is used to determine the possibility of a continuation of a previous trend from a point where the price has drifted in the same trend. If the trend continues, the price could rise rapidly, making it an advantageous time to trade using a flag pattern. If you think you've seen a flag to trade, the most important thing is a fast and steep price trend.
If the price slowly rises and falls below the flag, you should not trade at that time.
DOUBLE BOTTOM
The trajectory of the price line during the formation of the pattern resembles the letter "W". The last two price lows, located approximately the same, are a strong support zone where two price reversals are made to the upside.
When the market price breaks through the resistance level of the pattern, the formation of the pattern is complete. The BUY signal appears and the trend will change.
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