5_6201886093424459987.pdf - The Essential Guide to Chart...

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The Essential Guide to Chart Patterns#1: Trending MoveIf the candles are large (in an uptrend) , itsignals strength as the buyersare in control.If the candles are small, it signals weakness as the buyers are exhausted.
#2: Retracement MoveA Retracement Move is the “shorter” leg of the trend.If the candles are large, it signals the counter-trend pressure is increasing.If the candles are small, it’s a healthy pullback and the trend is likely to resume itself.
#3: Swing PointsAs a guideline:If the swing highs/lowsmove higher, then the market is in an uptrendIf the swing highs/lowsmove lower, then the market is in a downtrendIf the swing highs/lows are not moving higher or lower, then the market is in arange
Reversal chart pattern #1Look at the chart below…#1 and #2: The market is an uptrend as the price made new swing highs (and lows).#3: The price failed to make a new swing high. And if you notice, the Trending Move isgetting weak as the range of the candles got smaller (compared to #1 and #2).This doesn’t look good for the buyers. But if the swing low doesn’t break, the uptrend isstill intact.#4: The price broke below the swing low and the Retracement Move is getting stronger.Notice the range of the candles getting larger?

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Term
Spring
Professor
N/A
Tags
shoulders, Chart pattern

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