One of the most effective tools traders use to navigate this landscape is chart patterns. These visual representations of price action reveal underlying market psychology and can signal potential ...

A bull flag is a stock chart pattern comprised of three parts: the flagpole, the flag, and the breakout. The flagpole, sometimes called an impulse wave, is a parabolic stock price rise and signals ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market ...

For example, an uptrend supported by enthusiasm ... in the form of a short pullback that resembles a flag or pennant chart pattern. Once the handle is complete, the stock may breakout to new ...

The goal of technical analysis is to identify particular chart patterns that are thought to indicate directional trends or can predict price movements. The main components of a stock chart are the ...

(Created using FXCM’s Marketscope 2.0 charts) As illustrated in the above example, the pattern starts with strong, nearly vertical uptrend composed of large range, bullish candles called the ...

Sometimes a stock starts to consolidate in an extremely choppy fashion, then tightens up and produces an acceptable chart pattern. Former leader Research In Motion (RIMM) provided a good example ...

He watches for five patterns that he likes to trade ... and I'll have plenty of time to wait and watch this setup." The chart below is an example of an intraday VCP. It shows the initial spike ...