Stock Index Charts Analysis of Stock Index Setups

Stock Index Patterns - Stock Index Analysis Chart Patterns Stock Indices Strategies

Stock chart patterns are graphical representations of repeating price action formations that are commonly used in the trading market.

Stock Index Patterns is one of the studies used in technical analysis to help stock traders learn how to identify these repeating Chart Patterns formations.

These Patterns are important in trade because when the market is not moving in a specific direction it is forming a chart pattern. It is important to know these Chart Patterns formations so as to have an idea of what might be the next move in the trading market.

When price movements are drawn there are several Chart Patterns formations that occur naturally and repeat themselves over & over again. These Chart Patterns formations are used by a lot of technical traders to predict the next market move.

Traders often analyze these Chart Patterns formations to gauge supply and demand forces that form the basis for price fluctuations.

These Chart Patterns are classified in to Three different categories:

1. Reversal Setups

• Double tops Stock Index Setups

• Double bottoms Stock Index Setups

• Head and shoulders Stock Index Setups

• Reverse head and shoulders Stock Index Setups

2. Continuation Setups

• Ascending triangle Stock Index Setups

• Descending triangle Stock Index Setups

• Bull flag/pennant Stock Index Setups

• Bear flag/pennant Stock Index Setups

3. Bilateral

• Symmetric triangle - Consolidation Patterns

• Rectangle - Range Stock Index Setups

Reversal patterns - Stock Index Setups - confirm the reversal of the market trend once this reversal chart setup setup is confirmed. These Reversal Chart Patterns are formed after extended market trend either upwards or downward & these reversal patterns signal that the market is ready to reverse.

Continuation patterns Stock Index Setups - are formations that set up the market for a trend continuation move in the direction of the prior trend. These Continuation Chart Patterns are formed when the market is taking a break before continuing in same direction of the previous trend.

Consolidation patterns Stock Index Setups - form when the market is taking a break before deciding the next direction to take. When these Consolidation Chart Patterns are formed - the market is trying to decide which direction to trade.

Technical Chart Analysis of Stock Index Setups

There are two different types of chart analysis, these two might seem similar but are not: the two are:

• Japanese Candlesticks Patterns - Study of a single candlestick - Read Japanese Candlesticks Patterns

• Stock Index Chart Patterns - Study of a series of candlesticks formations

(This learn stock indices tutorial is about the second option above - Stock Index Chart Patterns)

The different topics for these two types stock indices analysis are:

Japanese Candles

• 39. Marubozu Candle Pattern & Doji Candle Pattern

• 40. Spinning Tops Candle Sticks Patterns

• 41. Reversal Candle Sticks Patterns

• 42. Inverted Hammer Candle Pattern & Shooting Star Candle Sticks Patterns

• 43. Piercing Line Stock Candlestick Pattern & Dark Cloud Cover Candle Sticks Patterns

• 44. Morning Star Candle Sticks & Evening Star Candle Sticks Patterns

Stock Index Patterns Lessons

• 53. Double Top & Double Bottom Setups

• 54. Continuation Setups

• 55. Consolidation Trading Patterns

• 56. Head and Shoulders Setups & Reverse Head & Shoulders Patterns

The examples below also illustrate the difference of the arrangements of these two technical analysis methods.

Candlesticks Patterns - Study of a single candle

Stock Index Chart Patterns - Study of a series of stock trading candlestick s