Content deleted Content added
No edit summary Tags: citing a blog or free web host Reverted |
Tags: Mobile edit Mobile app edit Android app edit App image add top |
||
| (3 intermediate revisions by 2 users not shown) | |||
Line 1:
{{Short description|Pattern within a chart when prices are graphed}}
[[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.
Line 23 ⟶ 24:
== Harmonic pattern ==
Harmonic Pattern<ref>[http://www.informit.com/store/harmonic-trading-volume-one-profiting-from-the-natural-9780137051502 Harmonic Trading, Volume One: Profiting from the Natural Order of the Financial Markets By Scott M. Carney Published Apr 12, 2010 by FT Press.]</ref> utilizes the recognition of specific structures that possess distinct and consecutive Fibonacci ratio alignments that quantify and validate harmonic patterns. These patterns calculate the Fibonacci aspects of these price structures to identify highly probable reversal points in the financial markets. This methodology assumes that harmonic patterns or cycles, like many patterns and cycles in life, continually repeat. The key is to identify these patterns and to enter or to exit a position based upon a high degree of probability that the same historic price action will occur.
Below is a list of commonly used harmonic patterns:
Line 38:
Traders use the Potential Reversal Zone (PRZ) as an important level of support/resistance in their trading and price action strategy.
== Candlestick pattern ==
| |||