Chart pattern: Difference between revisions

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{{Short description|Pattern within a chart when prices are graphed}}

{{More citations needed|date=July 2015}}

[[File:Triangle-ascending.jpg|thumb|Ascending triangle pattern]]

A '''chart pattern''' or '''price pattern''' is a [[pattern]] within a [[chart]] when prices are graphed. In stock and [[commodity market]]s trading, chart pattern studies play a large role during [[technical analysis]]. When [[data]] is plotted there is usually a pattern which naturally occurs and repeats over a period. Chart patterns are used as either reversal or continuation signals.

== Traditional chart pattern ==

Included in this type are the most common patterns <ref>{{Cite web|url=https://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns|title=Chart Patterns|website=StockCharts.com |access-date=2019-05-23}}</ref> which have been introduced to chartists for more than a hundred years. Below is a list of the most commonly used traditional chart patterns:

Reversal Patterns:

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== Candlestick pattern ==

In [[technical analysis]], a '''[[candlestick pattern''']] is a movement in prices shown graphically on a [[candlestick chart]] that some believe can predict a particular market movement. The recognition of the pattern is subjective and programs that are used for charting have to rely on predefined rules to match the pattern. There are 42 recognized patterns that can be split into simple and complex patterns.

Steve Nison is the person who introduced candlesticks to the West.<ref>{{Cite web|url=https://www.marketwatch.com/story/the-candlesticks-man-says-hes-not-buying-stocks-2015-12-01|title=The 'candlesticks man' says he's not buying stocks|last=Kilgore|first=Tomi|website=MarketWatch|language=en-US|access-date=2018-12-31}}</ref>

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==See also==

* [[Candlestick chart]]

* [[Elliot wave]]

* [[List of information graphics software]]

* [[Market trends]]

* [[Price action trading]]