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IQ

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NOTE

This book is made for only educational purpose, the materials given
on this book have been given to you learn, if you are interested in
learning then read this book only, if you trade at the given labels, then
you must do your research and consult your financial advisor–

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Trading in stock market without knowledge can put you in trouble, so
first learn and then come to stock market–

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D @iq_trader_07
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INDEX
(1)TYPES OF CANDLESTICKS

1. Hammer

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2. Inverted hammer
3. Gravestone doji
4. Dragonfly doji

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5. Spinning top
6. Morning star

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7. Evening star
8. Shooting star
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9. Hanging man
10. Bullish engulfing
11. Bearish engulfing
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12. Tweezer bottom


13. Tweezer top
14. Bullish inside bar
15. Bearish inside bar
16. Bullish harami
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17. Bearish harami


18. Three white soldiers
19. Three black crows
20. Dark cloud cover
21. Pin bar
22. Bullish piercing
23. Bullish kicker
24. Bearish kicker

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25. Three outside up
26. Three outside down
27. Three inside up
28. Three inside down
29. Bullish marubozu
30. Bearish marubozu

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(2)TYPES OF CHART PATTERNS

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1. Double top

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2. Double bottom
3. Triple top
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4. Triple bottom
5. Bullish pennant
6. Bearish pennant
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7. Bullish flag
8. Bearish flag
9. Bullish rectangle
10. Bearish rectangle
11. Rising wedge
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12. Falling wedge


13. Head and shoulders
14. Inverted head and shoulders
15. Symmetrical triangle
16. Broadening triangle
17. Ascending triangle
18. Descending triangle
19. Cup and handle

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20. Rounding bottom
21. Diamond top
22. Diamond bottom

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HAMMER

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A hammer candlestick pattern occurs when a security
trades significantly lower than its opening but then rallies
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to close near its opening price. The hammer-shaped


candlestick that appears on the chart has a lower shadow
at least twice the size of the real body
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INVERTED HAMMER

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The inverted hammer candlestick pattern indicates a bullish
A
reversal or short-term downtrend reversal. An inverted hammer
occurs after a prolonged sell-off when prices are near their lows
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for that period. It's easy to spot on a chart because it resembles


an upside-down, hanging shooting star candlestick formation
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GRAVESTONE DOJI

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A gravestone doji is a bearish pattern that suggests a
reversal followed by a downtrend in the price action. A
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gravestone pattern can be used as a sign to take


profits on a bullish position or enter a bearish trade.
The opposite of a gravestone doji is a dragonfly doji
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DRAGONFLY DOJI

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Dragonfly Doji is a candle pattern with no real body
and a long downward shadow, which is typical to it.
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It indicates price reversal, where open and close


prices are the same or almost the same. It is an
indication that bearish trends have been strong and
fished for the bottom and found it
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SPINNING TOP

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A spinning top is a candlestick pattern that has a short real
body that's vertically centered between long upper and lower
shadows. The candlestick pattern represents indecision
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about the future direction of the asset. It means that neither


buyers or sellers could gain the upper hand
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MORNING STAR

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A morning star is a three-candle pattern with the low point on the
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second candle. However, the low point is only apparent after the
close of the third candle. A morning star is a three-candle pattern
with the low point on the second candle. However, the low point
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is only apparent after the close of the third candle


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EVENING STAR

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An evening star is a stock-price chart pattern used by
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technical analysts to detect when a trend is about to
reverse. It is a bearish candlestick pattern consisting
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of three candles: a large white candlestick, a


small-bodied candle, and a red candle
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SHOOTING STAR

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A shooting star candlestick pattern occurs when an
asset's market price is pushed up quite
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significantly, but then rejected and closed near the
open price. It could be a possible signal of bearish
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reversal, meaning an uptrend might not continue


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HANGING MAN

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A hanging man candlestick occurs during an uptrend
and warns that prices may start falling. The candle is
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composed of a small real body, a long lower shadow,


and little or no upper shadow. The hanging man
shows that selling interest is starting to increase
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BULLISH ENGULFING

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A bullish engulfing pattern is a white candlestick
that closes higher than the previous day's
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opening after opening lower than the previous
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day's close
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BEARISH ENGULFING

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The Bearish Engulfing pattern is a two-candlestick
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pattern that consists of an up (white or green)
candlestick followed by a large down (black or red)
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candlestick that surrounds or “engulfs” the smaller up


candle. Basically, the pattern gets its name because
the second candle engulfs the first candle
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TWEEZER BOTTOM

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Tweezer bottom candlestick pattern occur when
the low of two candlesticks are almost or the same
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after a downtrend, Tweezer bottoms are considered


to be short-term bullish reversal patterns
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TWEEZER TOP

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The tweezer top candlestick pattern is defined as a
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bearish reversal pattern featuring two candlesticks. It
begins with a green candlestick, which appears on the
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first day when a stock is witnessing an uptrend. The


second day also opens high, making an almost similar
high as the first one
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BULLISH INSIDE BAR

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An internal bar chart pattern is embedded inside
a large CANDLE, some call it the Mother Bar.
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This is a pattern that forms after a major move in
the market and represents a period of
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consolidation, its next being candle BULLISH.


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BEARISH INSIDE BAR

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An “inside bar” pattern is a two-bar price action
trading strategy in which the inside bar is smaller
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and within the high to low range of the prior bar, i.e.
the high is lower than the previous bar's high, and
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the low is higher than the previous bar's low


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BULLISH HARAMI

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A bullish harami is a candlestick chart indicator used
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for spotting reversals in a bear trend. It is generally
indicated by a small increase in price (signified by a
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Green candle) that can be contained within the given


equity's downward price movement (signified by Red
candles) from the past couple of days
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BEARISH HARAMI

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A bearish harami is a two bar Japanese candlestick
pattern that suggests prices may soon reverse to the
downside. The pattern consists of a long white candle
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followed by a small black candle. The opening and


closing prices of the second candle must be contained
within the body of the first candle
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THREE WHITE SOLDIERS

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Three white soldiers is a bullish candlestick pattern that
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is used to predict the reversal of the current downtrend in
a pricing chart. The pattern consists of three consecutive
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long-bodied candlesticks that open within the previous


candle's real body and a close that exceeds the previous
candle's high
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THREE BLACK CROWS

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The Three Crows pattern is a bearish reversal
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pattern that consists of three bearish
long-bodied candlesticks, It is a bearish reversal
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pattern therefore it should be considered only


when it appears after an uptrend
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DARK CLOUD COVER

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Dark Cloud Cover is a candlestick pattern that
shows a shift in momentum to the downside
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following a price rise. The pattern is composed of a
bearish candle that opens above but then closes
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below the midpoint of the prior bullish candle


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PIN BAR

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A pin bar is a single-bar candlestick that is made
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up of a small body and a long upper or lower
shadow. In most cases, the bar is formed between
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a bullish and bearish candlestick. When this


happens, it is usually a bearish pin bar pattern
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PIERCING BULLISH

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The piercing line candlestick pattern is a bullish
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candlestick pattern that forms after an extended
bearish trend. It can be used as an indicator to
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predict the resumption of the uptrend as it shows


market indecision at support levels, which then
reverses as bulls overpower bears to push prices
higher again
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BULLISH KICKER

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a bullish kicker pattern starts with a Red
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(bearish) candlestick, which is then followed by
a Green (bullish) candlestick that opens above
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the black candlestick, creating a large upward


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BEARISH KICKER

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A bearish kicker is a candlestick pattern that
consists of two candles, and that’s believed to
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signal a coming swing to the downside. A bearish
kicker can be formed in an uptrend or downtrend,
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and is made up of a bearish candle that’s preceded


by a gap to the downside and bullish candle
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THREE OUTSIDE UP

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The three outside up is a bullish candlestick
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pattern with the following characteristics: The
market is in a downtrend. The first candle is
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bearish. The second candle is bullish with a long


real body and fully contains the first candle
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THREE OUTSIDE DOWN

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The three outside down, meanwhile, is a
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bearish candlestick pattern with the following
characteristics: The market is in an uptrend.
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The first candle is bullish. The second candle


is bearish with a long real body that fully
contains the first candle
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THREE INSIDE UP

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The three inside up pattern is a bullish reversal
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pattern composed of a large down candle, a
smaller up candle contained within the prior
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candle, and then another up candle that closes


above the close of the second candle
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THREE INSIDE DOWN

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The three inside down pattern is a bearish reversal
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pattern composed of a large up candle, a smaller down
candle contained within the prior candle, and then
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another down candle that closes below the close of the


second candle
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BULLISH MARUBOZU

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bullish Marubozu candlestick pattern, the low
price equals the open price, and the high price
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equals the close price. This type of Marubozu
candlestick pattern indicates that a specific
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stock is garnering so much buying interest that


they are willing to buy the stock at any price
during a trading session
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BEARISH MARUBOZU

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The bearish Marubozu candle signifies the
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complete control of the sellers on the market. Such
is the level of the selling pressure that market
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participants are willing to sell their stocks or assets


at every possible price point in the session
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DOUBLE TOP

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A double top is an extremely bearish technical
reversal pattern that forms after an asset reaches a
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high price two consecutive times with a moderate


decline between the two highs. It is confirmed once
the asset's price falls below a support level equal to
the low between the two prior highs
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DOUBLE BOTTOM

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A double bottom pattern is a classic technical
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analysis charting formation showing a major change
in trend from a prior down move. The double bottom
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pattern looks like the letter "W." The twice-touched


low is considered a support level
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TRIPLE TOP

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The triple top pattern occurs when the price of an
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asset creates three peaks at nearly the same price


level. The area of the peaks is resistance. The
pullbacks between the peaks are called the swing
lows
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TRIPLE BOTTOM

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A triple bottom is a visual pattern that shows the
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buyers (bulls) taking control of the price action from
the sellers (bears). A triple bottom is generally seen as
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three roughly equal lows bouncing off support


followed by the price action breaching resistance
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BULLISH PENNANT

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A bullish pennant is a technical trading pattern that
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indicates the impending continuation of a strong upward


price move. They're formed when a market makes an
extensive move higher, then pauses and consolidates
between converging support and resistance lines
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BEARISH PENNANT

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A bearish pennant is a technical trading pattern that indicates the
impending continuation of a downward price move. They're
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essentially the opposite to bullish pennants: instead of


consolidating after a move up, the market pauses on a significant
move down
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BULLISH FLAG

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Bullish flag formations are found in stocks with strong
uptrends and are considered good continuation patterns.
They are called bull flags because the pattern resembles a
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flag on a pole. The pole is the result of a vertical rise in a


stock and the flag results from a period of consolidation
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BEARISH FLAG

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The bearish flag is a candlestick chart pattern that
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signals the extension of the downtrend once the
temporary pause is finished. As a continuation pattern,
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the bear flag helps sellers to push the price action further
lower
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BULLISH RECTANGLE

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The bullish rectangle is a continuation pattern
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that develops during a strong uptrend.
Once the pattern is established, a break to the
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upside would imply a continuation of the bullish


trend
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BEARISH RECTANGLE

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The bearish rectangle is a continuation pattern
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that occurs when a price pauses during a strong
downtrend and temporarily bounces between
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two parallel levels before the trend continues


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RISING WEDGE

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The rising wedge chart pattern is a recognisable price move
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that's formed when a market consolidates between two
converging support and resistance lines. To form a rising
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wedge, the support and resistance lines both have to point in


an upwards direction and the support line has to be steeper
than resistance
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FALLING WEDGE

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The falling wedge chart pattern is a
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recognisable price move that is formed
when a market consolidates between two
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converging support and resistance lines


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HEAD AND SHOULDER

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The head and shoulders chart pattern is a popular and
easy-to-spot pattern in technical analysis that shows a
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baseline with three peaks, the middle peak being the


highest. The head and shoulders chart depicts a
bullish-to-bearish trend reversal and signals that an
upward trend is nearing its end
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INVERTED HEAD AND SHOULDER

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The inverse head and shoulders chart is thought to predict a
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bearish-to-bullish trend reversal and signals that a downward
trend is nearing its end. Investors consider it to be among
the most reliable trend reversal patterns
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SYMMETRICAL TRIANGLE

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A symmetrical triangle is a chart pattern characterized
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by two converging trend lines connecting a series of
sequential peaks and troughs. These trend lines
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should be converging at a roughly equal slope


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BROADENING TRIANGLE

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A Broadening Triangle is a relatively rare triangle pattern which
occurs when there is a lot of volatility in a security. It is formed
when the prices forge higher highs and lower lows consecutively.
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What is Broadening Triangle? On joining the highs and lows with


lines, a diverging pattern is seen on the chart
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ASCENDING TRIANGLE

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An ascending triangle is a chart pattern used in
technical analysis created by a horizontal and rising
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trendline. The pattern is considered a continuation


pattern, with the breakout from the pattern typically
occurring in the direction of the overall trend
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DESCENDING TRIANGLE

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A descending triangle is a bearish chart pattern created by
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drawing a trendline connecting a series of lower highs and
one connecting a series of lows. A price channel occurs
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when a security's price oscillates between two parallel lines,


whether they be horizontal, ascending, or descending
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CUP AND HANDLE

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A cup and handle is a technical chart pattern that resembles
a cup and handle where the cup is in the shape of a "u" and
the handle has a slight downward drift. A cup and handle is
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considered a bullish signal extending an uptrend, and it is


used to spot opportunities to go long
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ROUNDING BOTTOM

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A rounding bottom is a chart pattern used in technical
A
analysis and is identified by a series of price movements that
graphically form the shape of a "U". Rounding bottoms are
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found at the end of extended downward trends and signify a


reversal in long-term price movements
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DIAMOND TOP

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A diamond top formation is a chart pattern that can occur at
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or near market tops and can signal a reversal of an uptrend.
A diamond top formation is so named because the trendlines
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connecting the peaks and troughs carved out by the


security's price action form the shape of a diamond
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DIAMOND BOTTOM

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A diamond bottom is a bullish, trend reversal, chart pattern.
A diamond bottom is formed by two juxtaposed symmetrical
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triangles, so forming a diamond. A diamond bottom has to be
preceded by a bearish trend. This pattern marks the
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exhaustion of the selling current and investor indecision


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