Education Lesson 25
Now that you have an understanding of how candle sticks work and their purpose, this next chapter talks about price patterns which are shapes that form from the candles. Study these patterns and as you conduct tehcnical analysis on stocks, you will begin to see these shapes forming which helps give you an idea of where the stock is going, either up, down, or sideways
Here are a few infographics on patterns you will see in your analysis
All you need is 2 points of reference to create a line and you can begin to find the trend as it develops. Check out this picture. This is an example of an ascending triangle which is a bullish pattern. As you analyze charts more and more, these patterns will come natural to you.
If you can. Print out the patterns or come back here for future reference.