Miss Call for Registration
08030636113
Call us on : 07045654722
info@dhanashriacademy.com
 
You are at : Home > Classical Chart Pattern > Trend Channel
Broadening Formation
Channel Line
Diamond Formation
Double Top
Double Bottom
Flags and Pennants
Gaps
Head and Shoulder
Rectangle Pool
Rounding Top
Rounding Bottom
Support and Resistance
Symmetrical Triangle
Triangle Ascending
Triangle Descending
Triple Top
Triple Bottom
Trend Channel
Trendline
Wedge Falling
Wedge Rising
 

Trend Channel

Type of trend channel ascending Trend Channel and Descending Trend Channel.

Ascending Trend Channel : If connecting the price tops of a particular stock or index compose an upward-sloping line parallel to a line connecting the bottoms of that stock or index, the Ascending Trend Channel is the area between the two lines see the example below.



Resistance Turns Support: Broken resistance becomes potential support, and there is sometimes a test of this newfound support level with the first correction. Because the triple bottom is a long-term pattern, the test of newfound support may occur many months later. Price Target: The distance from the resistance breakout to lows can be measured and added to the resistance break for a price target. The longer the pattern develops, the more significant is the ultimate breakout. Triple bottoms that are 6 or more months in duration represent major bottoms and a price target is less likely to be effective.

As the triple bottom develops, it can start to resemble a number of patterns. Before the third low forms, the pattern may look like a double bottom. Three equal lows can also be found in a descending triangle or rectangle. Of these patterns mentioned, only the descending triangle has bearish overtones; the others are neutral until a breakout occurs. Similarly, the triple bottom should also be treated as a neutral pattern until a breakout occurs. The ability to hold support is bullish, but demand has not won the battle until resistance is broken. Volume on the last advance can sometimes yield a clue. If there is a sharp increase in volume and momentum, then the chances of a breakout increase.
 
[+] read more
[+] read more
[+] read more
 
 
    [+] click here to view all
Photo Gallery
              
[+] click here to view all

Navigation
Course We Offer
Advisory Services
Technical Analysis
Knowledge
 
Useful Links : BSE India  |  NSE India  |  SEBI  |  RBI  |  MCX  |  NCDEX  |  FOREX
Clients  |  Download  |  Awards  |  Blog  |  Up Coming Events  |  Knowledge Zone  |  Terms & Condition/Disclaimer/Refund/Cancel  |  Free Demat Account