Chart Patterns Flashcards
1
Q
what do chart patterns help predict?
A
where the price might move next
2
Q
what are reversal patterns?
A
patterns that tend to change the direction of a trend
3
Q
what are the two types of trends?
A
bearish & bullish
4
Q
what are the three types of reversal patterns?
A
head & shoulders
rising wedge
double top
5
Q
what are the three continuation types?
A
bullish/bearish rectangle
falling/rising wedge
bullish/bearish pennant
6
Q
what’s the difference between reversal patterns and continuation patterns?
A
continuations don’t result in a directional change
they can be viewed as a pause in the trend
7
Q
what are triangle patterns?
A
triangles are ascending/descending/symmetrical patterns that show trends over longer timeframes
