Indices Charts Analysis of Chart Setups

Indices Patterns - Indices Technical Analysis Chart Patterns Trading Strategies

Stock chart patterns are graphical representations of repeating trading price action patterns that are commonly used in the trading market.

Indices Chart Patterns is one of the studies used in technical analysis to help traders learn how to identify these repeating Chart Patterns formations.

These Chart Patterns are important in trade because when the trading market is not moving in a specific direction it is forming a chart pattern. It is important to know these Chart Patterns formations so as to have an idea of what might be the next move in the trading market.

When trading price movements are drawn there are several Chart Patterns formations that occur naturally & repeat themselves over & over again. These Chart Patterns formations are used by a lot of stock trade technical traders to predict the next market move.

Traders often study these Chart Patterns formations to gauge supply & demand forces that form the basis for trading price fluctuations.

These Patterns are classified into Three different categories:

1. Reversal Trading Setups

• Double tops Chart Setups

• Double bottom Chart Setups

• Head & shoulders Chart Setups

• Reverse head & shoulders Chart Setups

2. Continuation Trading Setups

• Ascending triangle Chart Setups

• Descending triangle Chart Setups

• Bull flag/pennant Indices Chart Setups

• Bear flag/pennant Indices Chart Setups

3. Bilateral

• Symmetric triangle - Consolidation Patterns

• Rectangle - Range Chart Setups

Reversal patterns - Indices Chart Setups - confirm the reversal of the market trend once this reversal chart pattern setup is confirmed. These Reversal Chart Patterns are formed after extended market trend either upwards or downward & these reversal patterns signal that the trading market is ready to reverse.

Continuation patterns Chart Setups - are formations that set up the trading market for a trend continuation move in the direction of the prior Indices trend. These Continuation Chart Patterns are formed when the trading market is taking a pause before continuing in same direction of the previous trend.

Consolidation patterns Chart Setups - form when the trading market is taking a break before deciding which is next direction to take. When these Consolidation Chart Patterns are formed - the trading market is trying to decide which direction to trade.

Technical Chart Analysis of Chart Setups

There are two types of chart analysis, these two might seem similar but are not: the two are:

• Japanese Candlesticks Patterns - Study of a single candlestick - Read Japanese Candlesticks Patterns

• Study of a series of candlesticks formations

(This learn indices trading tutorial is about the second option above - Indices Chart Patterns)

The different topics for these two types trading analysis are:

Japanese Indices Candlesticks

• 39. Marubozu Candlestick Pattern & Doji Candle Pattern

• 40. Spinning Tops Candle Sticks Patterns

• 41. Reversal Candle Sticks Patterns

• 42. Inverted Hammer Candle Pattern and Shooting Star Candle Sticks Patterns

• 43. Piercing Line Candlestick Pattern & Dark Cloud Cover Candle Sticks Patterns

• 44. Morning Star Candle Sticks & Evening Star Candle Sticks Patterns

Indices Chart Setups Lessons

• 53. Double Top & Double Bottom Patterns

• 54. Continuation Trading Setups

• 55. Consolidation Trading Setups

• 56. Head & Shoulders Chart Patterns & Reverse Head & Shoulders Patterns

The examples below also illustrate the difference of the arrangements of these two technical analysis methods.

Candles Patterns - Study of a single candle

Study of a series of candles