Chart patterns analysis is arguably the most prominent technical theory ever. Dive into this concise article to discover 10 leading options to exploit today.
Table of Contents
1. Introduction
Very few technical trading theories come close to chart patterns in fame and acceptance. The seemingly naive quest to discover particular shapes and lines in the markets has opened several doors of success.
Thus, this article uncovers 10 of the most popular options to exploit today. Readers will also receive exclusive trading tools to streamline the demanding process without sacrificing outcomes.
2. Unveiling the Leading Chart Patterns in Technical Analysis
Chart patterns are simply hypothetical shapes formed by market price movements. Owing to their recurring nature, technical analysts anticipate them continually.
Particular bullish or bearish moves to leverage typically follow such visual representations.
Hence, here are some of the most valued choices in today’s markets:
2.1 Head and Shoulders
The head and shoulders pattern comprises three peak swing highs. The middle being the highest is called the ‘head,’ and the two lower options are the ‘shoulders.’
The pattern hints at a bullish-to-bearish reversal when the price falls below the neckline.
2.2 Inverse Head and Shoulders
True to its name, this formation is the reverse of the Head and Shoulders. It occurs in a bearish setting, indicating an imminent bullish reversal after the market breaks above the neckline.
The market forms three troughs – the middle being significantly lower than others.
2.3 Double Top
The Double Top is another popular reversal pattern in chart analysis.
Instead of the three peaks in Heads and Shoulders, an asset’s price forms two here before a sustained bearish run after breaking through the neckline.
2.4 Double Bottom
Double Bottoms are the reverse of Double Tops. They suggest a potential bearish-to-bullish reversal after a price run above the neck resistance.
Proponents consider the first bullish move a minor retracement in preparation for the major reversal.
2.5 Flag
Unlike others, The Flag is a trend continuation pattern consisting of a pole (trend run) and a flag (consolidation).
The pole may be ascending or descending (i.e. it works in a bullish or bearish condition), and users may project its length from the flag as a potential price destination.
2.6 Triangle
Triangles are of three main types (Ascending, Descending, and Symmetrical), depending on the support and resistance orientation.
Typically, ascending triangles are bullish continuation patterns. Descending triangles signify bearish continuations. Symmetrical triangle patterns can inspire bullish or bearish price runs.
2.7 Wedge
Rising or falling wedges develop from price movements tightening between two sloping trendlines (support and resistance) of uneven steepness.
It typically indicates an approaching bearish reversal when rising and a bullish reversal when falling.
2.8 Pennant
Pennants seem similar to flags, wedges, and triangles in various respects. However, they are typically horizontal and form narrower closures from both trendlines.
Pennants can indicate continuations or reversals in both directions.
2.9 Cup and Handle
The Cup and Handle is a unique pattern utilizing a curved line to indicate a hypothetical cup with two trendlines for the handle.
It is strictly a bullish continuation pattern as promoters wait for the price to break above the handle.
2.10 Rounding Bottom
Rounding Bottom suggests a reversal from a downtrend to an uptrend, like the Cup and Handle. However, users seek to capitalize on the move when it breaks above a support level after forming the base.
Professionals also reverse this concept for a Rounding Top variant.
3. Bolstering Technical Analysis With Premium Pattern Finders for TradingView
Discovering conventional chart & price patterns is at the heart of most technical strategies. Hence, every interested trader must take the make-or-break process seriously.
The Harmonic Pattern Pro for TradingView ensures unreal precision in spotting 5+ chart patterns, including Butterfly, Gartley, and Shark.
In a nutshell, here are some of its perks:
- Total assurance of a pattern development in the market
- Awareness of the best trade entry and exit levels
- Freedom to exploit chart analysis across several markets in any timeframe
- Opportunity to assess every available signal, credit to the prompt TradingView alerts
Too good to be true? Click here and confirm these and many more benefits today.
Furthermore, microscopic market studies have also unveiled candlestick patterns, useful for forecasts. They range from Hammer to Belt Hold and Counter Gaps, which can elude newbies quite easily.
Fortunately, the Candlestick Pattern Pro by Indicator Vault is one of the most recommended tools to uncover them. Over 30 patterns can’t escape the watchful eyes of the algorithms in any market or timeframe.
The mind-blowing system assists users in the following ways:
- Instant attention to every desired pattern and potential opportunity
- Ability to concentrate on one’s favorite candlestick patterns by customization
- Liberty to conduct analysis and forecasts across every asset class
- Increased chances of engaging every move when available from the on- and off-platform notifications
Check it out now and prepare to be surprised by how much you could’ve missed.
4. Final Thoughts
Chart patterns will remain one of the most engaged theories in technical analysis. Popular ones include Head and Shoulders, Wedges, and Flags, all discussed in this article.
The Harmonic Pattern Pro works best to discover chart formations in live conditions like the Candlestick Pattern Pro for seamless candlestick pattern trading.
Please click the Share button and engage the Comment Section below for entertaining eye-opening discussions.
