PATTERNS

CONTINUATION PATTERNS

BULL FLAG(CONTINUATION) BEAR FLAG(CONTINUATION)

.The above continuation patterns are the bull and the bear flag.
.These patterns are spotted in a bullish or bearish trend,forming the corrective phase in a trending market.
.They are called flags,because the pattern resembles a flag on a pole.
.This patterns outline impulsive price movements to the upside and to the downside.
.These patterns are very common within the markets and you will see a lot of opportunities on these flag formations.

TRIANGLE(CONTINUATION) EXPANDING TRIANGLE(CONTINUATION)

.Triangle is another form of a continuation pattern and it is rare to find picture perfect
patterns within the charts.
.The expanding triangle.As a flag continuation pattern would retain its general parallel structure,
the expanding triangle broadens as price action develops.
.This pattern results in a very nice risk to reward ratio.
REVERSAL PATTERNS

RISING WEDGE FALLING WEDGE

.The rising wedge reversal is one of the most common patterns.Price action is approaching the top
of structure and this pattern signals the opportunity for a sell.
.The probability of this pattern playing out is the increases of touches.
.The falling wedge is the same,as price approaching the bottom of structure
.signalling an opportunity for a buy.
Both the rising and falling wedge patterns are seen commonly on the charts.

ASCENDING CHANNEL DESCENDING CHANNEL

.perfect
The ascending channel is a reversal pattern.It allows you to capitalize on very large risk to reward positions if you apply the
entry and risk management.
.The third touch at top of this pattern represents a high value area for a sell.
.The descending channel allows you to capitalize in the same way with a buying opportunity.
.Price moves to the downside in a clear channel before finally reversing.
.The more touches on this channel,the more probable it is of playing out
and playing out impulsively to the upside.
HEAD AND SHOULDERS

HEAD AND SHOULDERS INVERSE HEAD AND SHOULDERS

HEAD

LEFT SHOULDER RIGHT SHOULDER

LEFT SHOULDER RIGHT SHOULDER

HEAD

.The head and shoulders don't form always,but can be use as another confirmation to enter trades.
.Price forms the left shoulder retraces to the ''neckline'',test higher to form the head of the pattern,
test the neckline once more before forming the right shoulder of the pattern and breaking lower.
.Price has now ''rejected'' this area 3 times and increases probability of heading to the downside.
.The inverse head and shoulders is the same,just the opposite.
.Three rejections of a certain area or structure added evidence to look for buying opportunities within the position.

DOUBLE BOTTOM DOUBLE TOP

.The double bottom reversal pattern is price testing the same area twice and
confirming a certain structure or level.
.It signifies a buying opportunity.
.Price
The double top is the same,just the opposite.
comes back up to test the same area for the second time-confirming the opportunity
for a sell to the downside.
. Both double bottoms and double tops can also forms triple bottoms and triple tops.

THERE ARE STILL A LOT OF PATTERNS THAT YOU CAN TRADE,BUT LESS IS BETTER.IF YOU FOCUS ON ONLY A
FEW PATTERNS,YOU WILL BE LESS DISTRACTED AND MORE PROFITABLE.

BANK TRADER