The Series of Chart Patterns Chapter 14: “Cup & Handle”

What is Cup & Handle chart pattern?

A Cup and Handle can be used as an entry pattern for the continuation of an established bullish trend. It´s one of the easiest patterns to identify. The cup has a soft U-shape, retraces the prior move for about ⅓ and looks like a bowl. After forming the cup, price pulls back to about ⅓ of the cups advance, forming the handle. The full pattern is complete when price breaks out of this consolidation in the direction of the cups advance.

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The Series of Chart Patterns Chapter 13: “Gaps”

What are Gaps?

Gaps occur when there is an empty space between two trading periods that are caused by a significant increase/decrease in price; i.e. current open is not the same as prior closing price. E.g. A stock might close at INR 500 and open at INR 510 after positive earnings. This is called as Gap-up. There are three main types of Gaps: 1) Break away 2) Run away 3) Exhaustion

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The Series of Chart Patterns Chapter 11: “Flag Pattern”

What is Flag chart pattern?

A flag pattern is a trend continuation pattern, appropriately named after its visual similarity to a flag on a flagpole. It is formed by price action, which is contained within a small rectangle or a parallelogram. This is created when there is a minor profit booking in either an uptrend or a downtrend.

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The Series of Chart Patterns Chapter 10: “Triple Top”

What is Triple Top chart pattern?

Triple Bottom is a pattern used to predict the reversal of a prolonged uptrend. A triple Top pattern shows 3 different small tops near the similar amount. The triple top is regarded to be a difference of the head and shoulders top. There are three equal highs followed by a break above resistance.

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