Bulls Power

  What Is a Head And Shoulders Pattern?  A head and shoulders pattern is a chart formation that appears as a baseline with three peaks, the outside two are close in height and the middle is highest. In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal.  The head and shoulders pattern is believed to be one of the most reliable trend reversal patterns. It is one of several top patterns that signal, with varying degrees of accuracy, that an upward trend is nearing its end. Important points: A head and shoulders pattern is a technical indicator with a chart pattern described by three peaks, the outside two are close in height and the middle is highest. A head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal. The head and shoulders pattern is believed to be one of the most reliable trend reversal patterns.

  What Is a Double Top Pattern? A double top is an extremely bearish technical reversal pattern that forms after price reaches a high price two consecutive times with a moderate decline between the two highs. It is confirmed once the price falls below a support level equal to the low between the two prior highs. What do Double Tops and Double Bottoms tell?  A double top and double bottom pattern indicates possible trend reversal to the traders. Like other technical indicators and chart patterns, the double top and double bottom patterns do not indicate certain trend reversals. Traders should always use the chart patterns with other indicators such as volume for confirming the reversal before taking a position. Trading with Double Top:  There are certain rules when trading with Double Top  patterns.   Firstly one should see the market phase whether it is up or down. As the double top is formed at the end of an uptrend, the prior trend should be...

A double bottom pattern is a technical analysis charting pattern that describes a change in trend and a momentum reversal from prior leading price action. It describes the drop of a stock , a rebound, another drop to the same or similar level as the original drop, and finally another rebound. The double bottom looks like the letter W . The twice-touched low is considered a support level.    How to.indentify the double top.pattern ? Guide to identifying the double bottom pattern on a chart. Identify the two distinct bottoms of similar width and height  Distance between bottoms should not be too small - time frame dependent Confirm neckline/resistance price level Use other technical indicators to support double bottom bullish signal such as moving averages Be wary of trading against strong trends

  The triple top is a type of chart pattern used in technical analysis to predict the reversal in the movement of price. Consisting of three peaks, a triple top signals that the price may no longer be rallying, and that lower prices may be on the way.   Triple tops may occur on all time frames, but in order for the pattern to be considered a triple top, it must occur after an uptrend. The opposite of a triple is a triple bottom, which indicates thevprice is no longer falling and could head higher.     The triple top pattern occurs when the price  creates three peaks at nearly the same price level. The area of the peaks is resistance. The pullbacks between the peaks are called the swing low.After the third peak, if the price falls below the swing lows, the pattern is considered complete and traders watch for a further move to the downside.

A sideways market, sideways drift or sideways trend, is the term used to describe the phenomenon that takes place when the price of a stock, commodity or security fluctuates between a fixed support and resistance for an extended period of time. In its simplest terms, a price range is established for the security, one that it fluctuates within but cannot break out of.   In this article we will delve deeper into the concept of a sideways market as well as explore some other aspects such as the trade sideways meaning as well the sideways market strategies. In order to do that however, we first have to establish some basics.   Support and Resistances: Support and resistances are the two primary pillars of a sideways market. Given that a sideways market exists within certain upper and lower circuits. These circuits are known as supports and resistances. A support is the lower price level that stock price bounces back up from. Similarly a resistance is a price limit from wh...