Trading Reversal Patterns and Continuation Pattern Setups

Chart Patterns - Technical Analysis Chart Patterns Energies Strategies

trading patterns are graphical representations of repeating energies price action patterns that are commonly used in the energies market.

Trading Chart Patterns is one of the studies used in energies analysis to help energies traders learn how to identify these repeating Chart Patterns formations.

These Trading Chart Patterns are important in energies trading because when the energies market isn't heading in a particular direction it is forming a chart pattern. It is important to know these Chart Patterns patterns so as to have an idea of what might be the next move in the energies market.

When energies price movements are drawn there are several Chart Patterns patterns that occur naturally and repeat themselves over and over again. These Chart Patterns patterns are used by a lot of energies technical traders to predict the next energies market move.

Traders often analyze these Chart Patterns patterns to gauge supply and demand forces that form the basis for energies price fluctuations.

These Chart Pattern Setups are classified in to Three different categories:

1. Reversal Trading Setups

• Double top Trading Chart Pattern Setups

• Double bottom Trading Chart Pattern Setups

• Head and shoulders Trading Chart Pattern Setups

• Reverse head and shoulders Trading Chart Pattern Setups

2. Continuation Pattern Setups

• Ascending triangle Trading Chart Pattern Setups

• Descending triangle Trading Chart Pattern Setups

• Bull flag/pennant Trading Chart Pattern Setups

• Bear flag/pennant Trading Chart Pattern Setups

3. Bilateral

• Symmetric triangle - Consolidation Pattern Setups

• Rectangle - Range Trading Chart Pattern Setups

Reversal patterns - Trading Chart Pattern Setups - confirm the reversal of the energies market energies trend once this reversal pattern setup setup is confirmed. These Reversal Chart Patterns are formed after extended energies market energies trend either upward or downwards and these reversal patterns signal that the energies market is ready to reverse.

Continuation patterns Trading Chart Pattern Setups - are formations that set up the energies market for a trend continuation move in the direction of the prior trend. These Continuation Chart Patterns are formed when the market is taking a pause before continuing in the same direction of the previous trend.

Consolidation patterns Trading Chart Pattern Setups - form when the energies market is taking a break before deciding the next direction to take. When these Consolidation Chart Patterns are formed - the energies market is trying to decide which direction to trade.

Technical Chart Analysis of Trading Chart Pattern Setups

There are 2 different types of chart analysis, these two may seem similar but are not: the two are:

• Japanese Candlesticks Patterns - Study of a single energies trading candle - Read Japanese Candles Patterns

• Chart Patterns - Study of a sequence of energies candlesticks formations

(This learn energies tutorial is about the second option above - Chart Patterns)

The different topics for these two types energies analysis are:

Japanese Energy Candles

• 39. Marubozu Candle Pattern & Doji Candle Pattern

• 40. Spinning Tops Candles Setups

• 41. Reversal Candles Setups

• 42. Inverted Hammer Candlestick Pattern and Shooting Star Candlesticks Setups

• 43. Piercing Line Trading Candlestick Pattern and Dark Cloud Cover Candlesticks Setups

• 44. Morning Star Candles and Evening Star Candlesticks Setups

Chart Patterns Guides

• 53. Double Top and Double Bottom Pattern Setups

• 54. Continuation Pattern Setups

• 55. Consolidation Pattern Setups

• 56. Head and Shoulders Setups and Reverse Head and Shoulders Chart Pattern Setups

The examples below also illustrate the difference of the arrangements of these two energies analysis methods.

Candles Patterns - Study of a single candlestick

Chart Patterns - Study of a sequence of energies candlesticks