Like we promised,
here's a neat little cheat sheet to help you remember all those chart patterns
and what they signal.
We've
listed most of the chart patterns, when they are formed, what type of signal
they give, and what the next price move will be. Check it out!
|
Chart Pattern
|
Forms During
|
Type of Signal
|
Next Move
|
|
Double
Top
|
Uptrend
|
Reversal
|
Down
|
|
Double
Bottom
|
Downtrend
|
Reversal
|
Up
|
|
Head
and Shoulders
|
Uptrend
|
Reversal
|
Down
|
|
Inverse
Head and Shoulders
|
Downtrend
|
Reversal
|
Up
|
|
Rising
Wedge
|
Downtrend
|
Continuation
|
Down
|
|
Rising
Wedge
|
Uptrend
|
Reversal
|
Down
|
|
Falling
Wedge
|
Uptrend
|
Continuation
|
Up
|
|
Falling
Wedge
|
Downtrend
|
Reversal
|
Up
|
|
Bearish
Rectangle
|
Downtrend
|
Continuation
|
Down
|
|
Bullish
Rectangle
|
Uptrend
|
Continuation
|
Up
|
|
Bearish
Pennant
|
Downtrend
|
Continuation
|
Down
|
|
Bullish
Pennant
|
Uptrend
|
Continuation
|
Up
|
You also
might want to add this page to your bookmarks in case you need to double-check
those chart patterns' signals before you risk your hard-earned cash on a trade.
You never
know when you're gonna need to cheat, hah! Bookmark this thing yo!
As you probably noticed, we didn't include the triangle formations (symmetrical, ascending, and descending) in this cheat sheet.
That's
because these patterns can form either on an uptrend or downtrend and can
signal either a continuation or reversal.
Like we
mentioned, it's tough to tell where the price will breakout.
What's
important is that you have your entry orders ready so that you can be part of
the action either way!
