Chart Pattern Cheat Sheet
Powerful Chart Pattern Secrets to Maximize Your Gains
Chart Patterns Cheat Sheet brought to you by Option Traders Network. There are 3 types of chart patterns: o Continuation o Reversal o Bilateral (can go either way) Like we promised, here's a neat little cheat sheet to help you remember all those chart patterns and what they signal. We’ve listed most of the chart patterns, when they are formed, what type of signal they give, and what the next price move will be. Check it out! Chart patterns double top forms during Uptrend Double bottom forms during Downtrend Head and shoulders forms during Uptrend Inverse head and shoulders forms during Downtrend Rising Wedge forms during Downtrend Rising Wedge forms during Uptrend Falling Wedge forms during Uptrend Falling Wedge during Downtrend Bearish Rectangle forms during Downtrend Bullish Rectangle forms during Uptrend Bearish Pennant forms during Downtrend How to Trade Chart Patterns That's a whole lot of chart patterns we just taught you right there. We're pretty tired so it's time for us to take off and leave it to you from here... Just playing! We are not leaving you till you're ready! In this section, we'll discuss a bit more how to use these chart patterns to your advantage. lt.'s not enough to just know how the tools work, we've got to learn how to use them. And with all these new weapons in your arsenal, we'd better get those profits fired up! Let's summarize the chart patterns we just learned and categorize them according to the signals they give. Reversal Reversal patterns are those chart formations that signal that the ongoing trend is about to change course. If a reversal chart pattern forms during an uptrend, it hints that the trend will reverse and that the price will head down soon. Conversely, if a reversal chart pattern is seen during a downtrend, it suggests that the price will move up later on. In this lesson. we covered six chart patterns that give reversal signals. Can you name all six of them? I. Double Top 2. Double Bottom 3. Head and Shoulders 4. Inverse Head and Shoulders 5. Rising Wedge 6. Falling Wedge If you got all six right. brownie points for you! To trade these chart patterns, simply place an order beyond the neckline and in the direction of the new trend. Then go for a target that's almost the same as the height of the formation. For information, strategies and training videos please visit www.OptionTradersNetwork.com.
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