The most important chart patterns share market-RKG

 The most important chart patterns share market

Introduction

Technical Chart Patterns are one of 

the most effective methodologies in 

the universe Technical of technical analysis. 

chart patterns are the distinctive formations 

created by the movement of security prices. 

These patterns are repeating themselves over

 the period of time creating highly profitable 

opportunities to buy or sell.

Chart Patterns are highly important trading tool,

every trader from beginner to professional

 can utilize in their technical analysis strategy. 

They can be used to analyze all securities 

like forex, share, commodities etc.

Chart Patterns when formed, 

they help trader predetermine price

 actions such as breakouts and reversals. 

Understanding these chart patterns will t

remendously improve your technical analysis skills.

Hence it is important to familiarize yourself with different types of chart patterns.

Bullish flag

Bullish Flag Patterns are found in charts with strong uptrend & considered as are Bullish Continuation Patterns. They are called as bull flags because they look like a flag on a pole. The flag is a rectangle angled down to the prevailing bullish trend.

Bearish flag

Bear Flag Patterns are found in charts with strong downtrend & are considered as Bearish Continuation Patterns. They are called as Bear flags because they look like an inverted flag with a pole.

Bullish pennent

Bullish Pennant Patterns are found in charts with strong uptrend & are considered as Bullish Continuation Patterns. They are called as Pennant because they look like a taper flag on a pole (pennant means a taper flag on a ship). The Pennants are similar to Flag patterns only difference is that the consolidation with converging trend lines.

Bearish pennent

Bearish Pennant Patterns are found in charts with strong downtrend & are considered as Bearish Continuation Patterns. They are called as Pennant because they look like a taper flag on a pole (pennant means a taper flag on a ship). The Pennants are similar to Flag patterns only difference is that the consolidation with converging trend lines.

Double bottom

A double bottom is a strong bullish reversal pattern which is formed after stock price is reached its low two consecutive times with a rise between the two lows. After second time reaching the low the price then rises up its previous resistance level (Neckline), confirming that the reversal is started.

Double top 

A double top is a strong bearish reversal pattern which is formed after stock price is reached its high two consecutive times with a decline between the two highs. After second time reaching the high the price then drops below its previous support level (neckline), confirming that the reversal is started.

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Head and shoulder bottom

A Head and Shoulder pattern is considered one of the most reliable trend reversal patterns, A bottom head and shoulder pattern occurs after a long downtrend it consist of three valleys, where outer two valleys are of same depth and the middle is the lowest.

Head and shoulder top

A Head and Shoulder pattern is considered one of the most reliable trend reversal patterns, A top head and shoulder pattern occurs after a long uptrend it consist of three peaks, where outer two peaks are of same height and the middle is the highest.

Broadening wedge Descending 

The Descending broadening wedge is bullish reversal pattern. It is formed by two down sloping trend lines that broadens out. The upper trend line is resistance and lower trend line acts as support. Breakout is in upward direction.

Broadening wedge Asscending

The Ascending broadening wedge is bearish reversal pattern. It is formed by two up sloping trend lines that broadens out. The upper trend line is resistance and lower trend line acts as support. direction. Breakout is in downward 

Triple bottom

A Triple bottom pattern shows the bulls taking control of price action from the bears after the prolonged downtrend. A triple bottom is consists of three approx. equal lows bouncing off support followed by the price breakout at the confirmation line.

Triple Top Pattern

A Triple top pattern shows the bears taking control of price action from the bulls after the prolonged uptrend. A triple top is consists of three approx. equal highs bouncing off support followed by the price breakout at the confirmation line.

Falling wedge patten:

The Falling Wedge is a Bullish Pattern. This powerful pattern signals a change in trend direction, in general the falling wedge pattern is considered to be a reversal pattern but sometimes it facilitates a continuation of the same trend.

Bearish Rising wedge

The Rising Wedge is a Bearish Pattern. It is opposite to Falling Wedge. This powerful pattern signals a change in trend direction, in general the Rising wedge pattern is considered to be a reversal pattern but sometimes it facilitates a continuation of the same trend.

Right Angled Descending wedge

A right-angle Descending wedge is bullish continuation pattern. The a pattern is formed by two diverging trend lines, the one horizontal line at top which is resistance line and another downward sloping trend line on bottom which is support line. The price oscillates between the two lines. Then breakout at the resistance line confirms the trend continuation.

Right Angled Ascending Wedge:

A right-angle ascending wedge is a bearish reversal pattern. The pattern is formed by two diverging trend lines, the one horizontal line at bottom which is support line and another upward sloping trend line on top which is resistance line. The price oscillates between the two lines. Then breakout at the support line confirms the trend reversal.

Diamond Bottom:

A Diamond Bottom Pattern is a bullish reversal pattern that indicates a potential trend reversal from a downtrend. The pattern typically consists of two converging trendlines that form a diamond shape, with a series of lower highs and higher lows forming within the diamond. The breakout occurs when the price closes above the upper trendline, confirming the reversal. Note that A diamond bottom pattern sometimes can act as a bearish continuation pattern.

Diamond Top:

A Diamond top pattern is a technical chart pattern that signals a bearish reversal. It is characterized by the formation of a diamond shape, which is formed by two symmetrical triangles that are connected at the widest points. The pattern occurs after an uptrend, and it is made up of minimum four price swings - two highs and two lows. The price then breaks out of the diamond formation in a downward direction. Note that A diamond top pattern sometimes can act as a bullish continuation pattern.

Rectangle Bottom:

A Rectangle Bottom Pattern is a technical analysis pattern that indicates a price consolidation after a downtrend. The pattern gets its name because it forms a rectangle shape. The rectangle bottom pattern can be either a bearish continuation or a bullish reversal pattern, depending on its position in the market and the direction of the trend.

Rectangle top:

A Rectangle Top Pattern is a technical analysis pattern that indicates a price consolidation after an uptrend. The pattern gets its name because it forms a rectangle shape. The rectangle top pattern can continuation be or either a bullish bearish reversal a pattern, depending on its position in the market and the direction of the trend