Analyzing Chart Patterns
  1. Analyzing Chart Patterns: Introduction
  2. Analyzing Chart Patterns: Why Charts?
  3. Analyzing Chart Patterns: Head And Shoulders
  4. Analyzing Chart Patterns: Cup And Handle
  5. Analyzing Chart Patterns: Double Top And Double Bottom
  6. Analyzing Chart Patterns: Triangles
  7. Analyzing Chart Patterns: Flags And Pennants
  8. Analyzing Chart Patterns: The Wedge
  9. Analyzing Chart Patterns: Gaps
  10. Analyzing Chart Patterns: Triple Tops And Bottoms
  11. Analyzing Chart Patterns: Round Bottoms
  12. Analyzing Chart Patterns: Conclusion

Analyzing Chart Patterns: Introduction


By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com

Ever looked at the chart of a stock or commodity? Most likely, you have. Just about everyone who has ever analyzed a security takes a look at the price movements of the past month, quarter, year, etc.

For many analysts, the chart of a security is the starting point for all future analysis. Even staunch critics of technical analysis use charts to some extent. And for good reason: charts can provide a lot of information in a small amount of time.

Taking a look at the five-year chart of a company, you can quickly determine how well shareholders have done over the period. Based on the movements represented on the chart, one can tell if a company's share value has grown over the period or lagged.

The chart reader also can determine the volatility of the company's shares by looking at the movements on the chart. A company whose stock exhibits very jagged up-and-down movements is clearly more volatile than a company whose stock moves relatively smoothly across time.

But this is only the tip of the iceberg in terms of how charts are used by market participants. In this tutorial, we'll introduce you to some of the more advanced uses of charts.

Analyzing Chart Patterns: Why Charts?

  1. Analyzing Chart Patterns: Introduction
  2. Analyzing Chart Patterns: Why Charts?
  3. Analyzing Chart Patterns: Head And Shoulders
  4. Analyzing Chart Patterns: Cup And Handle
  5. Analyzing Chart Patterns: Double Top And Double Bottom
  6. Analyzing Chart Patterns: Triangles
  7. Analyzing Chart Patterns: Flags And Pennants
  8. Analyzing Chart Patterns: The Wedge
  9. Analyzing Chart Patterns: Gaps
  10. Analyzing Chart Patterns: Triple Tops And Bottoms
  11. Analyzing Chart Patterns: Round Bottoms
  12. Analyzing Chart Patterns: Conclusion
RELATED TERMS
  1. Continuation Pattern

    A technical analysis pattern that suggests a trend is exhibiting ...
  2. Diamond Top Formation

    A technical analysis reversal pattern that is used to signal ...
  3. Pattern

    In technical analysis, the distinctive formation created by the ...
  4. Hook Reversal

    A short-term candlestick pattern, occurring in either an uptrend ...
  5. Double Top And Bottom

    Chart patterns in which the quote for the underlying investment ...
  6. Kicker Pattern

    A two-bar candlestick pattern that is used to predict a change ...
RELATED FAQS
  1. Are continuation patterns useful in forex trading and stock trading?

    Learn what a continuation pattern is in technical analysis and why it is useful in forex and stock market trading, and discover ... Read Answer >>
  2. What are the differences between patterns and trends?

    Learn the difference between a pattern and a trend. Explore how technical analysts use patterns and trends to identify trading ... Read Answer >>
  3. Where do I place my target when the price of a stock breaks out of a technical chart ...

    Technical chart patterns such as ascending triangles, head and shoulders and double bottoms have rapidly grown in popularity ... Read Answer >>
  4. What is a common price target when identifying a double bottom?

    Learn how to identify a double bottom stock pattern and where to set a target selling price point to get the most out of ... Read Answer >>
  5. Why is confirmation on a chart important when evaluating a trade strategy?

    Learn the necessity of establishing confirmation of perceived patterns, including spotting types of confirmation signals, ... Read Answer >>
  6. How do I implement a forex strategy when spotting a Rounding Bottom Pattern?

    Understand the key factors to implementing a profitable forex trading strategy based on recognizing the formation of a rounding ... Read Answer >>

You May Also Like

Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center