1. Bullish Chart Patterns (Indicate a potential price increase)
These patterns suggest a higher probability of an uptrend after formation.
Inverted Shoulders – A reversal pattern indicating a shift from a downtrend to an uptrend.
Double Bottom – A 'W' shaped pattern showing strong support and a possible bullish reversal.
Bullish Flag – A consolidation pattern with a slight downward slope, often leading to a breakout to the upside.
Triple Bottom – A pattern with three equal lows, signaling strong support and a trend reversal.
Cup & Handle – A rounded bottom with a slight dip (handle), often indicating an upward break.
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2. Undefined chart patterns (Can break in any direction)
These patterns require confirmation as they do not guarantee a specific movement.
Symmetrical Triangle – A neutral pattern where price converges, with a possible breakout in any direction.
Descending Narrowing Wedge – Typically a bullish pattern, but requires breakout confirmation.
Ascending Narrowing Wedge – Typically bearish, but could also break to the upside in rare cases.
Descending Triangle – Generally bearish but can break to the upside if strong buying pressure exists.
Ascending Triangle – Generally bullish but can break to the downside if sellers dominate.
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3. Bearish Chart Patterns (Indicate a potential decrease in prices)
These patterns suggest a downtrend after formation.
Head & Shoulders – A reversal pattern that indicates a transition from an uptrend to a downtrend.
Triple Top – A pattern with three equal tops, signaling strong resistance and a possible decline.
Double Top – An 'M' shaped pattern showing resistance and a bearish reversal.
Bearish Flag – A consolidation pattern with an upward slope, often leading to a downward breakout.
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Key Points:
Bullish patterns suggest buying opportunities.
Bearish patterns signal potential selling pressure.
Indefinite patterns require confirmation before trading decisions.
Here is the image of the models 👇
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