Trading Reversal Patterns and Continuation Chart Patterns

Stock Chart Patterns - Stock Technical Analysis Chart Patterns Stocks Strategies

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

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

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

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

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

These Stock Patterns are classified in to 3 different categories:

1. Reversal Trading Patterns

• Double tops Stock Chart Patterns

• Double bottom Stock Chart Patterns

• Head and shoulders Stock Chart Patterns

• Reverse head and shoulders Stock Chart Patterns

2. Continuation Trading Patterns

• Ascending triangle Stock Chart Patterns

• Descending triangle Stock Chart Patterns

• Bull flag/pennant Stock Chart Patterns

• Bear flag/pennant Stock Chart Patterns

3. Bilateral

• Symmetric triangle - Consolidation Chart Patterns

• Rectangle - Range Stock Chart Patterns

Reversal patterns - Stock Chart Patterns - confirm the reversal of the stocks market stocks trend once this reversal chart pattern setup is confirmed. These Reversal Chart Patterns are formed after extended stocks market stocks trend either upward or downwards and these reversal stocks patterns signal that the stocks market is ready to reverse.

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

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

Technical Stock Chart Analysis of Stock Chart Patterns

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

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

• Stock Patterns - Study of a series of stocks candlesticks formations

(This learn stocks tutorial is about the second option above - Stock Chart Patterns)

The different topics for these two types stocks analysis are:

Japanese Stocks Candlesticks

• 39. Marubozu Candle Pattern and Doji Candlestick Pattern

• 40. Spinning Tops Candlesticks Patterns

• 41. Reversal Candlesticks Patterns

• 42. Inverted Hammer Candlestick Pattern and Shooting Star Candlesticks Patterns

• 43. Piercing Line Stocks Candle Pattern and Dark Cloud Cover Candlesticks Patterns

• 44. Morning Star Candlesticks and Evening Star Candlesticks Patterns

Stock Patterns Tutorials

• 53. Double Tops and Double Bottoms Chart Patterns

• 54. Continuation Trading Patterns

• 55. Consolidation Trading Patterns

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

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

Candles Patterns - Study of a single candlestick

Stock Patterns - Study of a series of stocks candlestick s