A breakout retest refers to a common price action pattern that occurs after a breakout from a significant level of support or resistance. It involves the price breaking out of a trading range or a chart pattern, such as a trendline, and then retracing back to retest the breakout level before continuing its movement in the direction of the breakout. Here's how a...
A parallel channel, also known as a price channel or trend channel, is a technical analysis tool used to identify and visualize the direction and strength of a trend. It consists of two parallel trendlines that encompass price movement within a specific range over time. Here's how a parallel channel is constructed: 1. **Upper Trendline:** This line connects the...
A bearish flag pattern is a continuation pattern that typically occurs within a downtrend and indicates a temporary pause before the price resumes its downward movement. It is formed by two parallel trendlines – the first trendline represents the initial downward move (flagpole), and the second trendline represents a consolidation period (flag). Here's how a...
Buying at support and selling at resistance is a classic strategy in technical analysis. It involves identifying key levels where the price of an asset has historically shown support (where it tends to stop falling) and resistance (where it tends to stop rising). "Support" refers to a price level where a downtrend is expected to pause due to a concentration of...
It seems like you're referring to technical analysis terms used in financial markets. "Lower High" and "Lower Low" are concepts often used in analyzing price movements. - "Lower High" refers to a peak in the price chart that is lower than the previous peak. It suggests a potential downward trend or a weakening of the existing trend. - "Lower Low" refers to a...
A bullish cup and handle pattern is a technical analysis pattern used by traders to identify potential bullish trends in the price of a security, typically a stock. The pattern resembles the shape of a tea cup with a handle, hence its name. Here's how it generally forms: 1. **Cup Formation**: The price initially forms a rounded bottom, resembling the shape of a...
A bearish flag is a technical chart pattern that can indicate a potential continuation of a downtrend in financial markets. It is considered a continuation pattern because it typically forms within a trend, suggesting that after a brief pause or consolidation, the price is likely to continue moving lower. Here's how it generally looks and works: 1. **Prior...
A breakout strategy is a popular trading strategy used in financial markets, especially in technical analysis. It involves identifying key levels of support and resistance on a price chart and trading the subsequent breakout from those levels. Here's how it generally works: 1. **Identifying Support and Resistance**: Traders first identify significant support and...
"Higher high" and "bullish flag" are terms commonly used in technical analysis, especially in the context of trading and chart analysis. A "higher high" refers to a price peak that is higher than the previous peak in a chart pattern. This indicates upward momentum and is often seen as a bullish signal, suggesting that the trend is likely to continue upward. A...
The inverse cup and handle pattern is a reversal pattern observed in technical analysis, typically signaling a potential reversal from a downtrend to an uptrend. It's essentially the mirror image of the traditional cup and handle pattern, but it appears at the bottom of a downtrend rather than the top of an uptrend. Here's how it's formed: 1. **Initial...
A bearish flag is a technical chart pattern that typically forms after a significant downward price movement in a financial asset, such as a stock or a cryptocurrency. It resembles a flag on a pole, hence the name. The pattern consists of two main components: 1. **Flagpole**: This is the initial sharp decline in price, which forms the pole of the flag. It...
A bull flag is a bullish chart pattern that typically occurs within an uptrend and signals a continuation of the existing trend after a brief consolidation period. It consists of two main components: 1. **Pole (Flagpole):** This is the initial strong upward move in price, which forms the flagpole. It represents a rapid increase in buying pressure. 2. **Flag:**...
A bearish flag is a technical chart pattern that can signal a potential continuation of a downward trend in the price of an asset. It typically forms after a significant downward price movement (called the flagpole), followed by a period of consolidation where the price trades within a narrow range, forming a rectangular-shaped flag. The flag portion represents a...
- Double top: - Bearish chart pattern - Two consecutive peaks at similar levels - Trough (retracement) between peaks - Signals potential reversal from uptrend to downtrend
A double top is a technical chart pattern that signals a potential reversal of an uptrend. It occurs when the price of an asset reaches a high point, retraces, then rallies back to a similar high before reversing downward. The pattern resembles the letter "M" and is formed by two consecutive peaks at approximately the same level, with a trough (the retracement)...
A double top is a technical chart pattern that signals a potential reversal of an uptrend. It occurs when the price of an asset reaches a high point, retraces, then rallies back to a similar high before reversing downward. The pattern resembles the letter "M" and is formed by two consecutive peaks at approximately the same level, with a trough (the retracement)...
A rising wedge is a bearish chart pattern in technical analysis. Here's a brief overview: 1. **Formation:** - A rising wedge forms when the price consolidates between two upward-sloping trendlines that converge towards each other. - The upper trendline connects the higher highs, while the lower trendline connects the higher lows. - The slope of the...
An inverse head and shoulders pattern is a bullish reversal pattern in technical analysis. It forms after a downtrend and consists of three troughs: two shoulders and a head, with the head being the lowest point. The pattern suggests a potential reversal in market sentiment. The neckline, drawn by connecting the highs between the shoulders, acts as resistance that...