Stock Market for Beginners

Price Patterns: Reversal and Continuation

There are two main price patterns:

1) Reversal Patterns- Indicates that the trend will reverse. A few of the most common reversal patterns include:

a. Head and shoulders

b. Double tops and bottoms

c. Triple tops and bottoms

2) Continuation Patterns- The trend pauses for awhile but it resumes. A few of the most common continuation patterns include:

a. Triangles (1), Triangles (2)

b. Rectangles (Coming Soon!)

c. Flags and Pennants (Coming Soon!)