Learning Technical Analysis #4 | Bullish Patterns
I continue to properly learn Technical Analysis in around 30 days instead of only watching Youtube TA videos for entertainment. This series of posts contains what I've learned during this time as a way to motivate myself to keep going and possibly help others that are going through the same process..
Last time I covered some of the main Bearish Patterns in the last post. Many of those patterns in reverse are bullish indications. The same rule applies that it's all about probabilities and there is no certainty of the price going up whatsoever when these patterns form.
#4 Bullish Chart Patterns
1 Cup & Handle 2 Inverted Head & Shoulders 3 Double Bottom 4 Ascending Triangle
1 Cup & Handle
The cup & handle is a base formation where there was a high following a long slow bottoming pattern followed by a new top at a similar height to the first top. At that point, there is another pullback with a lower volume followed by the next leg up. The drop after the first peak can not be a steep move down and shouldn't go all the way down again. the drop back after the 2nd peak also can't go down to the cup low and should have low volume. The psychology behind this pattern is that the ones who bought at the 1st top are back even and sell their holdings which forms the handle. Once they are out the price is ready to move up again.
Example: https://cdn.steemitimages.com/DQmeG8TSmFLsUeMMcWiFPdZifVpG9exH6rmB6nZmmwYGqBX/xxx37.jpg
2 Inverted Head & Shoulders
Example: https://cdn.steemitimages.com/DQmYLssWzKauy8RvDHrKktQjc5wRSTojECcN1HZQX5nHhbX/xxx39.jpg
3 Double Bottom
Example (can also be seen as inverted H&S) : https://cdn.steemitimages.com/DQmQ5p9u6xH2Xh9JKjNeCVZwrxQh4PqehHTTFiRZocGjNLh/xxx41.jpg
4 Ascending Triangle
Example: https://cdn.steemitimages.com/DQmRFR9Pk9hgu7fydvqhTfAGZfDVVF9NkzJ4pC7ZLdsWCHb/xxx43.jpg
Previous Technical Analysis Lessons Technical Analysis #1 | Basics Technical Analysis #2 | Trends Technical Analysis #3 | Bearish Patterns
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