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Chart Patterns: Head and Shoulders

This document discusses chart patterns, which are distinct formations on stock charts that provide trading signals or signs of future price movements. There are two types of patterns: reversal patterns, which indicate a trend change, and continuation patterns, which suggest a trend will persist. The document then lists several common chart patterns including head and shoulders, double tops/bottoms, triangles, wedges, and cups and handles that chartists analyze to identify trends and trend reversals.

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72 views

Chart Patterns: Head and Shoulders

This document discusses chart patterns, which are distinct formations on stock charts that provide trading signals or signs of future price movements. There are two types of patterns: reversal patterns, which indicate a trend change, and continuation patterns, which suggest a trend will persist. The document then lists several common chart patterns including head and shoulders, double tops/bottoms, triangles, wedges, and cups and handles that chartists analyze to identify trends and trend reversals.

Uploaded by

braetto_1x1
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Lecture 15

Chart Patterns
Chart patterns: Distinct formation on a stock chart that creates a trading signal,
or a sign of future price movements. Chartists use these patterns to identify current
trends and trend reversals and to trigger buy and sell signals.

There are two types of patterns within this area of technical analysis, reversal and
continuation.

Head and Shoulders


Double Tops

Multiple Tops
Double Bottoms

Multiple Bottoms
Ascending Triangle

Descending Triangle
Wedge

Wedge Up Wedge Down


Cup and Handle

Rounding Bottom

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