Trading Reversal Patterns & Continuation Chart Setups

Chart Patterns - Technical Analysis Chart Patterns CFD Strategies

Cfds patterns are graphical illustrations of repeating price action patterns that are commonly used in the market.

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

These Chart Patterns are important in cfd trading because when the cfd market is not moving 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 market.

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

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

These Patterns are classified into 3 different categories:

1. Reversal Chart Setups

• Double tops Chart Setups

• Double bottom Chart Setups

• Head & shoulders Chart Setups

• Reverse head & shoulders Chart Setups

2. Continuation Trading Setups

• Ascending triangle Chart Setups

• Descending triangle Chart Setups

• Bull flag/pennant Chart Setups

• Bear flag/pennant Chart Setups

3. Bilateral

• Symmetric triangle - Consolidation Chart Setups

• Rectangle - Range Chart Setups

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

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

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

Technical Chart Analysis of Chart Setups

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

• Japanese Candlesticks Patterns - Study of a single cfd trading candle - Read Japanese CFD Candlesticks Patterns

• Patterns - Study of a series of candlesticks formations

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

The different topics for these two types cfd analysis are:

Japanese Candles

• 39. Marubozu Candle-stick Pattern & Doji Candlestick Pattern

• 40. Spinning Tops Candles Setups

• 41. Reversal Candle-sticks Setups

• 42. Inverted Hammer Candle-stick Pattern and Shooting Star Candlesticks Setups

• 43. Piercing Line CFD Candle-stick Pattern & Dark Cloud Cover Candlesticks Setups

• 44. Morning Star Candlesticks and Evening Star Candlesticks Setups

Chart Setups Tutorials

• 53. Double Top and Double Bottom Chart Setups

• 54. Continuation Trading Setups

• 55. Consolidation Chart Setups

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

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

Candles Patterns - Study of a single candle

Patterns - Study of a series of candlestick s