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Pennants
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Pennants
Similar to a Symmetrical Triangle but generally stubbier
or not as elongated. A formation in which the slope
of price bar highs and lows are converging to a point
so as to outline the pattern in a symmetrical triangle.
To trade this formation, you can place orders at both
the break up and out of the pennant and break down and
out of the pennant, leaving your unfilled order as your
stop loss. |
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Wedges
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Rising
or Inclining
This formation occurs when the slope of price bar highs
and lows join at a point forming an inclining wedge.
The slope of both lines is up with the lower line being
steeper than the higher one. To trade this formation,
place an order on a break up and out of the wedge or
a sell order on a break down and out the wedge, leaving
your unfilled order as your stop loss. Rising wedges,
with a prior downtrend are anticipated to break down
and out, rather than up and out. |
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Falling
or Declining
This formation occurs when the slope of price bar highs
and lows join at a point forming a declining wedge.
The slope of both lines is down with the upper line
being steeper than the lower one. To trade this formation,
place an order on a break up and out of the wedge or
a sell order on a break down and out the wedge, leaving
your unfilled order as your stop loss. Falling wedges,
with a prior uptrend, are anticipated to break up and
out, rather than down and out. |
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Flags
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Bull
Flag
A formation consisting of a small number of price
bars where the slope of price bar highs and lows are
parallel and declining. Bull Flags are identified by
their characteristic pattern and by the context of the
prior trend. In the case of a Bull Flag the trend leading
to the formation of the Bull Flag is up. To trade this
formation, place orders on the break up and break down
points, leaving your unfilled order as your stop loss. |
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Bear
Flag
A formation consisting of a small number of price bars
in which the slope of price bar highs and lows are parallel
and inclining. Bear Flags are identified by their characteristic
pattern and by the context of the prior trend. In the
case of a Bear Flag the trend leading to the formation
of the Bear Flag is down. To trade this formation, place
buy and sell orders on the break up and down of the
flag, leaving the unfilled order as your stop loss. |
Commodity
Chart Videos
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Formations
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Retracement
Head
and Shoulders
Chart
Channels
Support
and Resistance
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