Sunday, July 14, 2013

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!

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