Symmetrical Triangle Chart patterns

In this blog Global Market Astro explains Triangle chart pattern formed in market trend charts.

TRIANGLES-EXPLAINED:

As the name clearly explains, these patterns form the shape of a triangle. These chart patterns are formed from the convergence of two trend lines being flat, ascending or descending, the price of the security moving between these trend lines.

There are three different types of triangles such as

1) Symmetrical triangle

2) Ascending triangle

3) Descending triangle

SYMMETRICAL TRIANGLE:

The symmetrical triangle is usually a continuation pattern that indicates a period of consolidation in a trend followed by a continuation of the former trend. It is formed by the convergence of a descending resistance line and ascending support line. The two trendlines causing the formation of this triangle should have a similar slope converging at a point termed as the apex. The price of the security will usually oscillate between these trendlines, towards the apex, and will breakout in the direction of the prior trend. 

If preceded by a downward trend, the focus should be on a break beneath the ascending support line. If preceded by an upward trend, look for a break above the descending resistance line. But, this pattern doesn't always lead to a continuation of the prior trend. A break in the opposite direction of the previous trend should signal the formation of a new trend. 

Above is an example of a symmetrical triangle that is headed by an upward trend. The first part of this pattern is the creation of a high in the upward trend, which is followed by a sell-off to a low. The price then moves to another high that is lower than the first high and again sells off to a low, which is higher than the previous low. At this point the trendlines can be drawn, which forms the apex. The price will continue to bounce between these lines until breakout. 

The pattern gets completed when the price breaks out of the triangle - look for an increase in volume in the direction of the breakout. This pattern is also susceptible to a return to the previous support or resistance line that it just broke through, so make sure to watch for this level to hold if it does indeed break out. 

Source :https://www.globalmarketastro.com/blog/symmetrical-triangle-chart-patterns/

Chart patterns | Cup and Handle

In this blog we are going to elaborate a chart pattern frequently observed in market trend analysis. Global Market Astro explains the cup and handle chart pattern in this blog.

CUP AND HANDLE CHART PATTERN

A cup and handle is a chart pattern of bullish continuation in which the upward trend movement has paused for a while and the upward trend will continue once the pattern gets confirmed.

In this figure the price patterns forms a cup which is preceded by an upward trend. A handle follows the cup which is generally a downtrend or sideway movement in prices. Once the price breaches the resistance in the handle, the uptrend continues. The patterns are formed in a wide range of timing, generally over a span of several months to more than a year.

Trading Double tops and bottoms

In this blog, Global Market Astro explains its blog viewers the commonly formed market price chart pattern - Double tops and Double bottoms.

DOUBLE TOPS AND BOTTOMS

It is a well-known trend reversal chart pattern. It is a commonly used chart pattern and is reliable. These chart patterns are formed after sustained trend and signals the trend reversals that are about to occur. These patterns are formed when the price trends test resistance or support levels twice and when they fail to break through it. These are used to signal intermediate and long term trend reversals.

In the double top the price tried twice to move upwards but failed and hence the trend reverses and moves downtrend. In case of double bottom the price tried to move lower twice but finds support and hence reversal occurs and heads upwards. 

Source : 

https://www.globalmarketastro.com/blog/trading-double-tops-and-bottoms/