The chart pattern paints a picture of various factors such as buying, selling, boom, and bust between players and who wins in the end. This shows that traders and investors are taking their own position.
With the help of chart pattern analysis, it is possible to predict the short duration and long duration trend.
The two main facts about technical analysis are that prices show trends and history repeats itself.
An upward momentum indicates that the demand factor is strong while a downward momentum indicates that the supply factor is strong.
The Range-Bound Market indicates a lack of trend. Aside from the channel pattern, the rest of the patterns can be divided into two types of patterns.
01. Reversal Pattern :
When a reversal signal structure is formed, there is an indication that the trend will be reversal after a steady rise or fall in the shares or the market.
It should always be kept in mind that the right decision can be made immediately after receiving such an indication by putting other factors along with it.
Following are some Reversal Pattern Structure :
02. Continuation Pattern :
This type of pattern structure indicates an upward momentum in the bullish shares after a short period of consolidation.
Following are the Continuation Pattern Structure :
- Symmetrical Triangle
- Ascending Triangle
- Descending Triangle
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