How to read Commonly Used Candlestick Chart Pattern

We will be covering Multiple Tops and Bottom which is a commonly used Candlesticks Chart Pattern in this blog. This is the fifth topic of the series as mentioned. If you want to look complete course in series read this.

  1. Understanding Basic Candlesticks For Beginners. 
  2. Most Famous Candlesticks to make Profit.
  3. Candlesticks Chart Pattern (Triangle in detail)
  4. Famous Candlesticks Chart Pattern ( Wedge, Head & Shoulders )

Either you are trading in cryptocurrency, forex or any other we just want you to know that trading is not magic, it is not gambling its common math which you can also learn and predict for your self by testing. We will continue to provide more basic insight all you need to be a pro. We will cover other most commonly used candlestick chart pattern or trading chart  in this blog.

 

Double Top and Double Bottom

double-top-and-bottom-candlestick-chart

 

Double top and Double bottom are reversal patterns that touch either their support or resistance lines before reversing their trend. We can look into strong initial trend and breakout in order to confirm the reversal. It is also know as W and M shaped charts. It can be calculated by this formula.

T = S – H (For M Shaped)

where T = Target Value, S = Support Level ( Recent Low Level ) and H = Pattern Height Distance between support and Resistance.

 

If support line is at 1200& and the highest point in 1260$ than the targeted price would be -60 that means the targeted price can go down till 1140.

Calculations will be inverse in case of W or Double Top Chart.

 

Triple Top and Triple Bottom

 

triple-top-bottom-chart

 

Just like double top and double bottom, triple top and triple bottom are also reversal trends. They either touch support and resistance lines before revering the trend. The complex to solve the chart is the less they appear and the more valid they are. 

 

You still have the same formula for this case which is T = S – H

 

This was all from the famous candlesticks chart pattern basic course, practice all this yourself and test the pattern before investing real capital. These basics are very important steps to know about the entry and exit point. We will write all about about indicators soon. You feedback and comments will motivate ABIDEA team to write more.

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