Category: Technical Analysis

In this post I will cover the hammer and hanging man candlestick patterns (also known as pin bars to many traders). They are reversal candles, meaning they indicate that the prevailing market trend may come to an end. Before I go any further, if you are new to candlesticks, you can read about candlestick basics here.

In this post I will explain triple tops and triple bottoms as chart patterns being used by many traders as part of their trading arsenal. They are classified as reversal patterns in technical analysis and are very popular.

This post is an introduction to Japanese candlesticks (also known as candles for short) and will act as a foundation for my future posts on the specific types of candlestick patterns and ideas on how they can be used in trading. 

Price patterns can in general be put in either the continuation or reversal category. Markets are either trending or range bound (non trending) and it’s this transition between trending, ranging and back to trending markets where continuation and reversal patterns normally come in.

In this post I will be covering the double top and double bottom pattern; classic chart patterns in technical analysis known as reversal patterns. Before I get into this post I want those of you that want to know what technical analysis is to check this post out, and for those that need to know more about support and resistance can read about it here; both posts will make what I’m about to discuss a lot more clear.

In this post I will be discussing one of the most well known and widely recognized patterns in classical charting known as the head and shoulders pattern. It is mainly known as a reversal pattern but some technical analysts also use it as a continuation pattern so I will be discussing both here.

Support and resistance is very popular when it comes to trading, so in this post I will explain the very basics of support and resistance.

When it comes down to someone’s trading / investing strategy, it will in general come down to either a fundamental / economic analysis approach or a technical analysis approach. With fundamental / economic analysis I mean a trader / investor analysing a company using its financial data (to invest in stocks),  or maybe general market conditions for the stock market / commodities / interest rates, bonds, forex, politics to come to a decision as to in what products (of which there are many)to invest / trade. I don’t want to write much more about fundamental / economic analysis but I hope that you at least get the idea, and I actually want to get to  the part of technical analysis of which this post is actually about.