![]() Now let’s talk about next most important pattern which is– 4. The price is forming lower highs and higher lows, suggesting a breakout is imminent, but the direction (up or down) is uncertain.Visualize a triangle where both the top and bottom lines converge, creating a symmetrical shape. The price is making higher lows, and it suggests a potential breakout to the upside.□.It looks like a right-angled triangle with a flat bottom. Imagine a triangle where the bottom line is flat, and the top line slopes upward. The price is making lower highs, and it indicates a potential breakout to the downside.□.It looks like an upside-down right-angled triangle. Imagine a triangle with a flat top and a bottom line sloping downward. Now let’s understand each triangle pattern one by one– ASCENDING TRIANGLE: A symmetrical triangle has both trendlines converging.A descending triangle has lower highs and a flat bottom.An ascending triangle shows higher lows and a flat top.Triangles represent price consolidation before a potential breakout. The Triangles (Ascending, Descending, Symmetrical) Chart Patterns Okay now let’s move on to next profitable chart patterns– 3. Use same 1:3 Stoploss as above Head and Shoulder pattern. It indicates that after reaching a low point, the price found support and might be reversing its downtrend, heading upward.This is called a double bottom pattern.It looks like the letter “ W” on the chart. ![]() drops again to about the same level (second valley),.The price drops to a certain level (first valley),.It suggests that after reaching a high point, the price struggled to go higher again, indicating a potential trend reversal downward.It looks like the letter “ M” on the chart.goes up again to about the same level (second peak),.The price goes up to a certain level (first peak),.Now let’s understand both patterns in details– DOUBLE TOP CHART PATTERN: These patterns show resistance and support levels.Ī double top forms after a price increase and signals a potential downward □ trend.Īnd, a double bottom forms after a price drop and signals a potential upward □ trend. The Double Top and Double Bottom Chart Patterns Now let’s move on to second chart patterns which is– 2. In all below chart patterns you can use the same Stoploss ratio 1:3 This means if your target is to gain 30 Rupees then set stoploss for 10 Rupees.To protect your investment, you can set a stop loss at a ratio of 1:3. Your goal is to reach the gap between the highest resistance level and the support level. When that happens, you can enter the market. The key to using this pattern is to wait for the price to break below the support level (the lowest point). This up and down movement creates the Head and Shoulders pattern on the chart. Finally, it can’t go higher and starts to go down. ![]()
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