Stock Index Charts Analysis of Stock Index Chart Patterns
Stock Index Patterns - Stock Index Technical Analysis Chart Patterns Stock Indices StrategiesStock index chart patterns are graphical representations of repeating stock index price action formations that are commonly used in the stock index trading market.
Stock Index Chart Patterns is one of the studies used in stock indices technical analysis to help stock indices traders learn how to recognize these repeating Stock Index Chart Patterns formations.
These Stock Index Chart Patterns are important in stock index trading because when the stock indices market is not moving in a particular direction it is forming a stock indices chart pattern. It is important to know these Stock Index Chart Patterns formations so as to have an idea of what might be the next move in the stock index trading market.
When stock index price movements are drawn there are several Stock Index Chart Patterns formations that occur naturally and repeat themselves over and over again. These Stock Index Chart Patterns formations are used by a lot of stock indices technical traders to predict the next stock indices market move.
Traders often study these Stock Index Chart Patterns formations to gauge supply and demand forces that form the basis for stock index price fluctuations.
These Stock Index Chart Patterns are classified in to Three different categories:
1. Reversal Chart Patterns
- Double tops Stock Index Chart Patterns
- Double bottoms Stock Index Chart Patterns
- Head and shoulders Stock Index Chart Patterns
- Reverse head and shoulders Stock Index Chart Patterns
2. Continuation Chart Patterns
- Ascending triangle Stock Index Chart Patterns
- Descending triangle Stock Index Chart Patterns
- Bull flag/pennant Stock Index Chart Patterns
- Bear flag/pennant Stock Index Chart Patterns
3. Bilateral
- Symmetric triangle - Consolidation Patterns
- Rectangle - Range Stock Index Chart Patterns
Reversal patterns - Stock Index Chart Patterns - confirm the reversal of the stock indices market stock indices trend once this reversal chart pattern setup is confirmed. These Reversal Chart Patterns are formed after extended stock indices market stock indices trend either upwards or downward & these reversal stock indices patterns signal that the stock indices market is ready to reverse.
Continuation patterns Stock Index Chart Patterns - are formations that set up the stock indices market for a stock indices trend continuation move in the direction of the prior Indices trend. These Continuation Chart Patterns are formed when the market is taking a break before continuing in same direction of the previous Indices trend.
Consolidation patterns Stock Index Chart Patterns - form when the stock indices market is taking a break before deciding the next direction to take. When these Consolidation Chart Patterns are formed - the stock indices market is trying to decide which direction to trade.
Technical Stock Index Chart Analysis of Stock Index Chart Patterns
There are two different types of stock indices trading 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 stock indices 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 Indices Candles
Stock Index Patterns Lessons
The examples below also illustrate the difference of the arrangements of these two stock indices technical analysis methods.
Candlesticks Patterns - Study of a single candle
Stock Index Chart Patterns - Study of a series of stock index trading candlestick s
