Trading Reversal Stocks Chart Patterns and Continuation Stock Chart Patterns

Stock Patterns - Stock Trading Analysis Chart Patterns Stock Trading Strategies

Stocks chart patterns are graphical representations of repeating stocks price action formations that are commonly used in the stock market.

Stock Chart Patterns is one of the studies used in stocks trading analysis to help stock traders learn how to recognize these repeating Stocks Chart Patterns formations.

These Stocks Chart Patterns are important in stock trading because when the stocks market is not moving in a particular direction it is forming a stocks chart pattern. It is important to know these Stocks Chart Patterns formations so as to have an idea of what might be the next move in the stock market.

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

Traders often study these Stocks Chart Patterns formations to gauge supply and demand forces that form the basis for stocks price fluctuations.

These Stocks Patterns are classified in to Three different categories:

1. Reversal Stock Chart Patterns

• Double tops Stock Chart Patterns

• Double bottom Stock Chart Patterns

• Head and shoulders Stock Chart Patterns

• Reverse head and shoulders Stock Chart Patterns

2. Continuation Stock Chart Patterns

• Ascending triangle Stock Chart Patterns

• Descending triangle Stock Chart Patterns

• Bull flag/pennant Stock Chart Patterns

• Bear flag/pennant Stock Chart Patterns

3. Bilateral

• Symmetric triangle - Consolidation Stock Chart Patterns

• Rectangle - Range Stock Chart Patterns

Reversal patterns - Stock Chart Patterns - confirm the reversal of the stocks market trend once this reversal stocks chart pattern setup is confirmed. These Reversal Stocks Chart Patterns are formed after extended stock market trend either upward or downward and these reversal stock trading patterns signal that the stocks market is ready to reverse.

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

Consolidation patterns Stock Chart Patterns - form when the stocks market is taking a break before deciding the next direction to take. When these Consolidation Stocks Chart Patterns are formed - the stocks market is trying to decide what direction to trade.

Technical Stocks Chart Analysis of Stocks Chart Patterns

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

• Japanese Candlesticks Patterns - Study of a single stock candle - Read Japanese Stock Candlesticks Patterns

• Stock Patterns - Study of a series of stock candlesticks formations

(This learn stock trading tutorial is about the second option above - Stock Chart Patterns)

The different topics for these two types stocks trading analysis are:

Japanese Stock Trading Candles

• 39. Marubozu Stock Candle Pattern & Doji Stock Candle Pattern

• 40. Spinning Tops Candlesticks Patterns

• 41. Reversal Candles Patterns

• 42. Inverted Hammer Stock Candle Pattern & Shooting Star Stock Candles Patterns

• 43. Piercing Line Stock Candle Pattern and Dark Cloud Cover Stock Candles Patterns

• 44. Morning Star Candlesticks and Evening Star Stock Candles Patterns

Stock Patterns Lessons

• 53. Double Top & Double Bottom Stock Chart Patterns

• 54. Continuation Stock Chart Patterns

• 55. Consolidation Stock Chart Patterns

• 56. Head and Shoulders Stocks Patterns and Reverse Head and Shoulders Stock Chart Patterns

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

Candles Patterns - Study of a single candlestick

Stock Patterns - Study of a series of stock candle s