A breakout is a potential trading opportunity that occurs when an asset's price moves above a resistance level or moves below a support level on increasing volume. The first step in trading breakouts is to identify current price trend patterns along with support and resistance levels in order to plan possible entry and exit points. Once you've acted on a breakout...
A breakout is a potential trading opportunity that occurs when an asset's price moves above a resistance level or moves below a support level on increasing volume. The first step in trading breakouts is to identify current price trend patterns along with support and resistance levels in order to plan possible entry and exit points. Once you've acted on a breakout...
A Rectangle is a continuation pattern that forms as a trading range during a pause in the trend. The pattern is easily identifiable by two comparable highs and two comparable lows. The highs and lows can be connected to form two parallel lines that make up the top and bottom of a rectangle.
trendline is a line drawn over pivot highs or under pivot lows to show the prevailing direction of price. Trendlines are a visual representation of support and resistance in any time frame. They show direction and speed of price, and also describe patterns during periods of price contractioN
Trading channels can be drawn on charts to help see uptrends and downtrends in a stock, commodity, ETF, or forex pair. Traders also use channels to identify potential buy and sell points, as well as set price targets and stop-loss points. Ascending channels angle up during uptrends and descending channels slope downward in downtrends. Other technical indicators,...
The symmetrical triangle is a chart that can be recognized by its lower highs and higher lows. When two trend lines converge with the converging trend lines connecting and containing several peaks and troughs, then this pattern is indicated. Once one of those peaks “break out” of this barrier, it can indicate a powerful bullish or bearish movement that investors...
The cup and handle pattern occurs in both small time frames, like a one-minute chart, and in large time frames, like daily, weekly, and monthly charts. It occurs when there is a price wave down, followed by a stabilizing period, followed by a rally of approximately equal size to the prior decline. It creates a U-shape, or the "cup" in our "cup and handle." The...
The main features of the descending triangle pattern are: A flat support line. A descending trend line that connects a series of lower highs. The flat support line and the descending trend line converge to a poin