Indices Charts Analysis of Setups Patterns

Indices Patterns - Technical Analysis Chart Setups Strategies

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

Index Setups is one of the studies used in trading analysis to help traders learn how to identify these repeating Setups formations.

These Setups are important in trade because when the trading market is not moving in a specific direction it is forming a chart pattern. It is essential to know these Setups 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 Setups formations that occur naturally and repeat themselves over and over again. These Setups formations are used by a lot of stock trade technical traders to forecast and predict the next price move.

Traders often study these Setups formations to gauge supply and demand forces which form the basis for trading price fluctuations.

These Patterns are classified in to 3 various categories:

1. Reversal Setups

• Double tops Setups Patterns

• Double bottom Setups Patterns

• Head & shoulders Setups Patterns

• Reverse head & shoulders Setups Patterns

2. Continuation Setups

• Rising triangle Chart Setups Patterns

• Falling triangle Setups Patterns

• Bull flag/pennant Setups Patterns

• Bear flag/pennant Setups Patterns

3. Bilateral

• Symmetric triangle - Consolidation Patterns

• Rectangle - Range Patterns

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

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

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

Technical Chart Analysis of Setups Patterns

There are 2 types of chart analysis in trading, these 2 might seem similar but aren't: the 2 are:

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

• Study of a series of candles formations

(This learn trading tutorial is about the second option above - Setups Patterns)

The different tutorials for these 2 types trading analysis are:

Japanese Indices Candles

• 39. Marubozu Candlestick Pattern and Doji Candlestick Pattern

• 40. Spinning Top Candlestick Patterns

• 41. Reversal Candle Patterns

• 42. Inverted Hammer Candlestick Pattern and Shooting Star Candlestick Patterns

• 43. Piercing Line Candle Pattern and Dark Cloud Candlestick Patterns

• 44. Morning Star Candlestick and Evening Star Candlestick Patterns

Indices Chart Setups Lessons

• 53. Double Top and Double Bottoms Patterns

• 54. Continuation Setups

• 55. Consolidation Patterns

• 56. Head and Shoulders Chart Setups & Inverse Head and Shoulders Setups Patterns

The exemplifications shown below also indicate the difference of the arrangements of these 2 technical analysis methods & techniques.

Candles Patterns - Study of a single candlestick

Study of a series of candles

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