Popular Charting Patterns
Many people believe that history repeats itself. Technical analysts often use proven successful price patterns from great stocks as tools for finding major new reserves. Let's look at some examples:
Cup and Handle - This is the model of a bar chart that can be short as seven weeks, while 65 weeks. The cup is in the shape of the letter "U". The handle has a slight decrease drift.
On the right side of the pattern is low volume. As the stock comes to test the old highs, the action will make the selling pressure by the people who bought at or near the old high.
This sale will push the stock price trade sideways with a tendency towards a downtrend for anywhere from four days to four weeks, then it goes off.
This model looks like a container with a handle. It is one of the easiest ways to detect, and investors made a lot of money to use.
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