stock chart patterns basics

Chart PatternsA very useful skill in tracking market breadth is being able to recognize different stock chart patterns. Although these chart patterns do no guarantee what will occur next they do help in identifying likely points of change. As already discussed, markets do not move in straight lines and chart patterns help investors maximize these moves and are especially helpful if we already understand the markets bull or bear bias.

The following is list of common chart patterns (please check back from time to time as the list grows):

Broadening Bottom – A Bull market reversal
Broadening Top – A Bear market reversal
Diamond Bottom – A Bull market reversal
Diamond Top – A Bear market reversal

Further reading:

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