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Showing posts with the label Chart Pattern

Flag Chart Pattern

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A flag chart pattern is a short-term continuation pattern that is formed when the price of an asset moves in a strong directional trend, and then experiences a period of consolidation before continuing in the same direction. The pattern is created by two parallel trendlines that form a "flag" shape on the price chart. The flag pattern typically lasts for a short period, usually a few weeks, and signals a potential continuation of the prior trend. Traders will often enter a position in the direction of the prior trend when the price breaks out of the flag pattern. There are two types of flag patterns: bull flags and bear flags. Bull flags occur when the prior trend is bullish, and bear flags occur when the prior trend is bearish. Wedges and flags are both considered continuation patterns, meaning they signal that the prior trend is likely to continue after a period of consolidation. Wedges can be bullish or bearish, depending on the direction of the prior trend, an

Falling and Rising wedges

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The rising wedge is a bearish chart pattern that is formed by a series of lower highs and higher lows. It indicates that the stock is making lower highs, but the pullback is not strong enough to break the trend line. This pattern can be seen on all time frames, including daily charts or even tick charts (which track individual trades). Falling wedge A falling wedge is a chart pattern that looks like an inverted V, with the lower part of the "V" pointing down and getting narrower as it approaches a trend line. A falling wedge can be identified when you see price action forming a series of lower highs and higher lows. The falling wedge pattern is considered to be bullish, so if you're looking to buy stocks or enter long positions in your portfolio, this would be one way to do it. The best time to enter a trade based on this pattern is when prices break above resistance (or down through support) after forming at least two higher highs and two lower lows within an