Indices Charts Analysis of Chart Setups

Indices Patterns - Technical Analysis Chart Patterns Strategies

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

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

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

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

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

These Patterns are classified into Three different categories:

1. Reversal Setups

• Double tops Chart Setups

• Double bottom Chart Setups

• Head & shoulders Chart Setups

• Reverse head & shoulders Chart Setups

2. Continuation Setups

• Rising triangle Chart Setups

• Falling triangle Chart Setups

• Bull flag/pennant Chart Setups

• Bear flag/pennant Chart Setups

3. Bilateral

• Symmetric triangle - Consolidation Patterns

• Rectangle - Range Chart Setups

Reversal patterns - Chart Setups - confirm the reversal of the market trend once this reversal pattern setup is confirmed. These Reversal Chart Patterns are formed after extended market trend either upwards or downward & these reversal patterns signal that the trading market is ready to reverse.

Continuation patterns Chart Setups - are formations that set up the trading market for a trend continuation move in the direction of previous trend. These Continuation Chart Patterns are formed when the trading market is taking a break prior to continuing in same direction of previous trend.

Consolidation patterns Chart Setups - form when the trading market is taking a break before deciding which is next direction to move. When these Consolidation Chart Patterns are formed - the trading market is trying to determine what direction to trade.

Technical Chart Analysis of Chart Setups

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

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

• Study of a series of candlesticks formations

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

The different topics for these two types trading analysis are:

Japanese Indices Candlesticks

• 39. Marubozu Candlestick Pattern and Doji Candlestick Pattern

• 40. Spinning Top Candlestick Patterns

• 41. Reversal Candle Patterns

• 42. Inverted Hammer Candle Pattern and Shooting Star Candle Patterns

• 43. Piercing Line Candlestick Pattern & Dark Cloud Cover Candlestick Patterns

• 44. Morning Star Candle & Evening Star Candle Patterns

Indices Chart Setups Lessons

• 53. Double Top and Double Bottom Patterns

• 54. Continuation Setups

• 55. Consolidation Setups

• 56. Head & Shoulders Chart Patterns & Reverse Head & Shoulders Patterns

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

Candles Patterns - Study of a single candle

Study of a series of candles