Stock chart patterns cheat sheet

Stock chart patterns cheat sheet

In this blog, you will learn different types of chart patterns explanations target and stop losses so that we reduce the losses and increase the profits to earn maximum from the stock market. There are a total of 63 chart patterns. We will explain all chart patterns so subscribe to the blog to get the notification when we update. If you really want to learn and earn money practice this exercise daily. Analyze Nifty 50 stock chart find out the pattern and comment on your findings it will help you and other investors 

1. Broadening Bottoms Upward Breakout

Trading rules for broadening Bottoms Upward Breakout

1. It is a short term reversal pattern 
2. It is also caller 5 point reversal pattern
3. It has two sloping lines upper and lower
4. The stock price should touch at least upper line 2 times and lower line 2 times 
5. Price and volume are very important parameters 
6. If the stock makes a higher high with increasing volume and lower lows with decreasing volume 
7. A breakout occurs after price close above previous high 
8. After breakout first target will be T1 and second target will be T2
9. Stop loss for this pattern will be the low of previous high 
10. If the move is not supported by volume pattern will fail 

 Trading rules for Broadening Bottoms downward Breakout

1. It is a continuation pattern of the previous trend
2. If the stock makes a higher high with decreasing volume and lower lows with increasing volume 
3. The stock price should touch at upper line 2 times and lower line 2 times 
4. Breakdown occurs after price close previous lows
5. After the breakdown, the first target will be T1 and second target will be T2
6. Stop loss for this pattern will be the high of previous low
7. If the move is not supported by volume pattern will fail 
8. It is applicable in uptrend and downtrend
9. The best time frame for this pattern is daily