Day Trading Chart Patterns

Candlestick Chart Analysis

Understanding how to read a candlestick chart analysis is crucial in order to identify chart patterns.

Breakouts

A breakout is said to occur when the price of a security moves out of the resistance and support level.

Resistance: the price at which the market is met with an increase of supply thus preventing any further price increase.

Support: the price at which the market is met with a decrease in supply thus preventing any further price decrease.

Pennant Pattern

The pennant chart pattern has the appearance of a pennant flag.

Morning Consolidation

The morning consolidation chart pattern can easily be identified and occurs within the first hour of market open.

UNCI – 21-06-2017, Retrieved from Google Finance on 28-08-2017. Link.

Hammer Candlestick

The Flag