Bullish chart patterns indicate the market will rise soon, you know very well that bullish chart patterns are formed on the bottom, new swing low, or pullback after the formation of a bullish chart pattern market can move upside. Today we are discussing trendy chart patterns these are forms usually in the market after downtrends and after formation market changes its direction.
In the market, you must know which chart pattern has more reliabilities to move the market upside. Every chart pattern can push the market using its full power, but there is a condition the chart pattern must be performed on the bottom or support. If the chart pattern is not performed on the bottom then maybe the market move upside as well.
Bullish chart patterns play their main role in doing technical analysis. On behalf of technical analysis, you can predict which chart pattern can push the market upside. If you don’t know how to do technical analysis then you must learn it, because it is the main part for everyone who wants to become a trader.
Table of Contents
Double Bottom bullish chart pattern
This is a bullish chart pattern that’s performed after a downtrend. After the formation of this chart pattern, there are possibilities to market move upside down. This chart pattern has two twin bottoms indicating its perfect double bottoms. It looks like –W– shape on the chart in the market.
The double bottom has two equal lows. In this chart pattern first bottom trend reaches its low and just after takes a little bit of bullish move and after that falls again close to the last low. Both lows are separated by the peak or moderate rally. There are chance the market can start moving again in an uptrend.
The double chart pattern is known as the bullish reversal chart pattern among traders and technical analysts. This chart pattern gives buying opportunities to traders, but traders should wait for a breakout of the right leg with proper closing in the market. If traders trade it without a proper breakout then maybe there chance to bear a loss.
Inverted Head and Shoulders
This is a bullish chart pattern and it indicates the market has reached its lower point there are possibilities that the market can reverse from that level. With the help of this chart pattern, we can unlock the profitable trading journey. This chart pattern is not easily recordable for every trader in the market.
This chart pattern is the opposite of the regular head and shoulder chart pattern. After formation there are possibilities market can move upside down from there.
This chart pattern has three waves first waw is first low as left shoulders, and immediately one more waves are formed as a new low as the head, after the last wave as the right shoulders. The mixture of all of these is called inverted head and shoulders. This is the most reliable chart pattern that gives the most accurate signals in the market.
Now, the point comes to knowing how you can catch market movement on that chart pattern. Simply, you should market a trendline on head and shoulders high. After that, you must wait for a breakdown of it. After the breakout you have two options, first is to trade on a fresh breakout or the second is to wait for a retest because a trade-on retest is the most accurate signal it has a small stop loss and a long target.
Bullish chart patterns Triangles
The triangle chart pattern usually performs on the bottom. Here in this post, we are going to learn about two triangle chart patterns symmetrical triangle and ascending triangle.
Symmetrical Triangle =- This is a classic trading chart pattern that is covered with a trend line and looks like a triangle pattern. This chart pattern is usually performed on the bottom and support, after formation there are chance the market can reverse from the bottom.
The triangle has two works first is to reverse the market from the bottom and the second is to continue the existing trend. In this post, we are going to learn about how it works on support.
In the market, the triangle has three higher low and lower high combinations. Every higher low and lower high are different from each other and they are not breaking another swing high or low in triangle channel. It means the perfect formation has been completed.
Now learn how to recognize behalf of its market reverse from there or continue. If that chart pattern is performed on the bottom and the market has initial support then it has a high chance it will move from there. In another way, if that chart pattern is performing in the middle of the trend after high upward movement then it will work as a continuation chart pattern.
Ascending Triangle =- Ascending chart pattern is used to find trade in the forex or the stock market. It’s known as a bullish reversal or trend continuation chart pattern. This chart pattern usually performs at the bottom of the market with the help of horizontal and ascending trend lines.
In the formation of a triangle chart pattern horizontal lines connect high of the price. In the same way, the ascending trendline connects its higher low for performing a neat and clean triangle chart pattern.
This chart pattern helps traders find a trend in various markets. Traders can use this chart pattern to predict the further movement of the market. But while trading traders must confirm the market is close above the horizontal line.
Cup And Handle chart pattern
The cup and handle are popular in reversal or continuation. It’s helpful to chart patterns to do technical analysis for further price movement. This chart pattern mostly performs on the bottom of the market, after formation there are possibility market can go upside down.
This chart pattern has a rounding –U-shaped bottom that indicates the market moving in a round shape from down to upside. Immediately after one more round is performed but this round is too small rather than the last bottom. If we merge both rounds then it’s transmuted in a cup with a handle chart pattern.
It’s important to wait for confirmation. If you do not wait for confirmation then the market can shake your account. This chart pattern gives signals to traders market can go upside down. In another way, you can confirm with the help of a horizontal line. If the line is breaking with proper candle close then you can ride the trade.
Rounding bottom chart pattern
The rounding bottom chart also known as a saucer bottom, takes a long time for reversal in technical analysis. Because in this bullish chart pattern, the market performs for a long time. It has many buch on candles. First market moves downside in a curve shape and when the market reaches to bottom the market tries to reverse and with curves.
This chart pattern typically takes a longer period to perform rather than another chart pattern. Now point to how to identify this chart pattern. It’s not hard to find you have to one thing in mind this chart pattern is performed on a new bottom before performing this chart pattern there is no other chart pattern like that.
You can place a trade on it after the breakout of the horizontal time frame. When the market breaks the high rounding chart pattern market must be consolidated at the horizontal line. After consolidation, you can place the trade with a small stop loss.
Bullish Flag chart pattern
Bullish chart patterns are usually performed on the bottom of the market but in paragraphs, we are going to learn about bullish flag chart patterns. This chart pattern performs in the middle of the trend. If this chart pattern is performing in the middle of the market. Then traders can predict the market has more power remaining to move upside.
The flag has many bullish consecutive candles after candles market has a recruiter formation. That indicates in the market buyers are taking a rest. After spending some time on the same levels then the market can move upwards again.
Traders be careful while taking a trade on it. Because some time market follows on a news basis and bullish chart patterns are formed on the resistance. If you have good knowledge about technical analysis then you can easily trade on it. Because this chart pattern is good for every trader.
