Charting Patterns
 Support and Resistance levels will often change roles.
Resistance = rebounding off a ceiling. Support = bouncing off the floor. |
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 Double Tops are significant reversal patterns. It is where a high has been reached twice before retracing. This indicates weakness as the stock did not have the strength to rise above the previous high. |
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 A Double Bottom is essentially a mirror image of a double top. It usually occurs at the end of a downtrend and forms a base at a support level. This is a very bearish signal. |
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 Triple Tops are significant reversal patterns, where a stock has attempted to rally 3 times. It has struggled unsuccessfully on all 3 occasions to close above the level of resistance. |
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 Triple Bottom patterns are characterized by very strong levels of support. Stock has failed on 3 occasions to close below this particular support level. A bullish implication |
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 The Head & Shoulders formation is usually located at the end of a solid stock price rise.
A downward sloping neckline indicates probable bearish implications. |
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 The Inverted Head & Shoulders is a significant bottom reversal. It is characterized by a central lower trough with bullish implications.
The Inverted Head & Shoulders is often formed at the end of a downtrend. |
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 An Ascending Triangle is formed in an existing uptrend. It forms when a horizontal resistance line is intersected by an upward sloping trendline.
A Descending Triangle is formed in an existing downtrend. It is likely to breakout downwards in the direction of the sloping trendline. |
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 A Symmetrical Triangle is formed when a downward & upward sloping trendline converges. The breakout can occur in either direction. |
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