This is a board for researching fundamental and technical analysis charts.
Triangles
Triangles are important chart patterns. They offer very good probability for continuation of a trend when the price breaks from this pattern.
Ascending triangle
This version of a stock chart pattern is considered bullish. It has very good reliability if it is found in an uptrend . As you can see in the illustration, there is horizontal resistance at highs and a rising support line at lows.
Descending triangle
This version of a stock chart pattern is considered bearish. It has very good reliability if it is found in a downtrend. The resistance is a declining downtrend line, and support is at the horizontal level.
Flags and Pennants
Flags and pennants are very solid stock chart patterns. They signal very good trading opportunities.
I like these chart patterns, and a lot of other traders agree that they're the most reliable chart patterns.
They're known as continuation stock chart patterns. You can find them after a strong trend move. These patterns represent consolidation and little sideways movement. When the price breaks from the pattern, then the trend resumes again.
The bullish version has lower lows and lower highs against the previous main trend direction. Trend lines for highs and lows are parallel.
The
bearish type of pattern is based on higher highs and higher lows against the major trend.
Pennants have another design. Trend lines are not parallel, but they're going to meet at one point. This pattern is smaller in size and also needs less time to develop.
Head and shoulders
Head and shoulders is a bearish reversal chart pattern. It finishes an uptrend move and starts a downtrend move.
The Left shoulder and head are created during an uptrend. The price retraces all the way down from the top of pattern, it means
100% retracement of a head uptrend move. This is first warning sign. It shows that the uptrend is weak.
Then, the right shoulder forms. A lot of supply is available from previous buyers in a head uptrend and creates a lower high, that is, the right shoulder. This is the last warning sign that the uptrend is finished.
Inverse head and shoulders pattern
This is a bullish version of this chart pattern. The same rules work for this version as for the bearish version above.
- Watch the volume. Volume has to decrease during development of this pattern.
- Breakout from the pattern will not fail if it's accompanied by higher volume.
What Are Elliot Wave Cycles?
Please read, these cycles happen very often in penny stocks.
http://www.forexhit.com/learn-forex/elliott-wave-principle.html
JAPANESE CANDLESTICKS
Charting tools
http://www.stockcharts.com
http://www.chartpatterns.com
http://stockcharts.com/education/IndicatorAnalysis/
http://www.investopedia.com/categories/technicalanalysis.asp
http://www.candlesticker.com/Default.asp
http://candlestickforum.com/PPF/Parameters/16_332_/candlestick.asp
http://www.incrediblecharts.com/technical/candlesticks.htm
http://www.chartpatterns.com/
http://www.investopedia.com/university/technical/techanalysis8.asp
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators
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