top 4 neutral chart pattern best profitable in stock market.

best top 4 neutral chart pattern best profitable in stock market.

best top 4 profitable neutral chart patterns. one man hold red and green candlestick pattern..

  • top 4 neutral chart pattern we will learn about in this article . There is a beautiful siaing ringless i.e. “History Repeats Itself“.
  • Knowing history is very important, if th⌈e previous incident comes up again, what needs to be done at that time, history helps us to understand.
  • Traders are trading in stock market, commodity, crypto currency, forex market. evidently in every market there are buyers and sellers.
  • Trading is a game based on all psychological. In this, sellers and buyers invest money on the basis of chart pattern.
  • Before this information about continuation chart pattern and reversal chart pattern has been learn. Learned how to recognize this and how to book profit using it

Table Of Contains.

What is chart pattern?

What is neutral chart pattern?

 › How is neutral chart pattern formed?

 › Types of neutral chart pattern.

1. Ascending Triangle.
2. Descending Triangle.
3. Symmetrical Contracting Triangle.
4. Symmetrical Expanding Triangle.

 › Neutral chart pattern Technical analysis.

 › How many chart patterns are available in the market?

What is chart pattern?

Chart patterns are formed thousands, millions of times before on the chart in the stock market. When the market forms a pattern above the price chart, we call it a chart pattern.

In live market, buyers and sellers sometimes meet the same situation, at that time they give the same price reaction in the market and this creates a pattern.

It is very important to recognize and know the chart pattern. This is the first step in Technical analysis, from which treads with experience from the market book better profits.

Stock chart pattern gives signals of rising or falling price of stock.

What is neutral chart pattern?

This are found in the market, then the trend of the market continues after a certain period of time or it can change, it is called a neutral chart pattern. If this pattern is found then invest money in the market keeping in mind other technical strategy.

Learned about reversal chart pattern and continuation chart pattern in previous article. If a chart pattern is found in the market, then if the market goes from an up trend to a down trend, it is called a reversal chart pattern.

If a chart pattern is found in the market, if the price is in an up trend, then it goes into an up trend, then it is called a continuation chart pattern.

How is neutral chart pattern formed?

neutral chart pattern are many different types of chart patterns when the market is open. It is very important to recognize the chart pattern in the market. It is necessary to take the right entry in the market from the price action next to the chart pattern

If there is a chart pattern in the market and the entry is take wrong, there is a possibility of losing trades, so it is very important to identify the chart pattern in the live market.

If a neutral chart pattern is formed in the market, it is formed in different forms. These types are explained in the following information. this pattern, the market trend is likely to continue or reverse after the price moves to a certain distance.

In a neutral pattern, price goes up or down by breaking price resistance or support. both sellers and buyers are making efforts to book profit. This makes the market move up and down and this creates a pattern.

Types of neutral chart pattern.

1. Ascending Triangle.
2. Descending Triangle.
3. Symmetrical Contracting Triangle.
4. Symmetrical Expanding Triangle.

1. Ascending Triangle.

Ascending Triangle chart pattern

Ascending Triangle is the first chart pattern in neutral chart pattern. In an Ascending pattern, if an Ascending line is from the front end of a horizontal line above the market chart and its back ends are connect, an Ascending Triangle is form above the chart.

Market sideways continues in Ascending Triangle. In the market there are sellers at the place of resistance and buyers at the place of support. In this pattern price goes down from resistance and price goes up from support. The price goes down from the resistance, here the sellers are trying to bring the price down by selling the stock.

When the pattern starts, the resistance moves forward in the horizontal line. evidently, horizontal line resistance is form above the chart. the support is not visible in a straight line above the chart.

In the pattern, first support is find and the price go up, then when the price comes down from the resistance, before the first support, the price finds another support and from there the price go back up. At this time, the price finds a second support above the first support.

If the trend line is draw after the support is find on the chart, if this line is connect to the resistance line, an Ascending Triangle is form. The market moves in this triangle.

The market is moving in triangle, at this time if the market breaks the resistance line, there is a possibility that the market will go into an up trend. If the market breaks the support line, the market is likely to fall.

Market moves in both ways in chart pattern. In this, entry should be take with the help of market line break-out.

After the breakout of the support in the Ascending Triangle chart pattern, entry should be take at the low of the candle after the entry support line in the market and a stop-loss should be apply to the resistance.

The breakout of resistance in the market, there is a possibility that the market will go into an up-trend. At this time, entry shall be take at the high of the bullish candle and the stop-loss shall be place at the place of support.

2. Descending Triangle.

Descending Triangle.

Descending Triangle chart pattern, support is find in a line above the chart. After the first support, the second support starts at the same point and a horizontal line is from it.

When the resistance is find above the chart, the second resistance is place below the first resistance. After this, the resistance gradually starts to come down in the market.

If a descending line is draw in the market according to the point of resistance, a descending triangle is form if this line crosses the support line. The price action of the market moves in this triangle.

The price breaks the support when the pattern enters the market, there is a possibility of the market going down. At this time, the low of the candle breaking the support should be take into the market and stop-loss apply to the resistance.

When the price resistance breaks in the market, there is a possibility that the market will go into an up trend. Candle breaks the resistance of the market, at that time entry should be take at its high and stop loss should be apply to the support

After the formation of the pattern, after the resistance or support break in the market, the market can reverse once again for trend confirmation. Reversal trend can go back to the place of support or resistance and increase in the position. Due to this, entry in the market should be take after confirmation.

3. Symmetrical Contracting Triangle.

Symmetrical Contracting Triangle.

Symmetrical Contracting Triangle chart pattern, the price of the market continues to sideways in the structure of the triangle. At this time, this price can go forward and become a contract. That means it can go in up trend or down trend.

When the second resistance occurs after the first resistance in the pattern, it falls below the previous point. Similarly, the next resistance goes down.

On the chart, the second support occurs after the first support at or before the upper point and the next support occurs before the previous support.

If you draw 2 trends from support and resistance, you will find that a symmetric triangle is form.

In this pattern, the same things happen as the previous neutral chart pattern. In this, the price of the market goes into a down trend after breaking the support. After breaking the resistance, it goes into an up trend

When the Symmetrical Contracting Triangle chart pattern enters the market, the entry shall be done by knowing its next movement and the stop loss shall be apply to the lines of support or resistance.

4. Symmetrical Expanding Triangle.

 Symmetrical Expanding Triangle.

Symmetrical Expanding Triangle, the price of the market increases according to the structure of the triangle. In the chart pattern, the resistance is higher for the second time than for the first time, which means it increases gradually.

Support goes down from first to last. This creates the structure of an expanding triangle when the trendline is draw.

Some traders do trading like scalping in chart pattern. In this, after the tringle expands further, after taking the stock position for the support, if the market is in an up trend, then the target should be place on the line of resistance.

If the market goes into a down trend after resistance. The target should be place next to the support line. By using this technique these traders book good profit from the market.

Neutral chart pattern Technical analysis.

Technical analysis of stock is very important in trading. From this we can predict the future movement of the stock. Technical analysis of different things is done in the market.

Neutral chart pattern In technical analysis, it is necessary to properly draw the trained line of support and resistance on the chart. If there is any mistake in this, possibility of further loss.

drawing a trend line, it is important to know which neutral chart pattern is from it. identifying the chart pattern, it is important to understand which strategy needs to be use at this time.

How many chart patterns are available in the market?

There are three types of chart patterns available in the market. Reversal chart pattern, Continuation chart pattern and Neutral chart pattern. Information about these two chart pattern types is available at lenght on the website. Information about types of neutral chart pattern is available in this article.

There are 10 types in Reversal chart pattern, similarly there are 10 types in Continuation chart pattern. Neutral chart pattern has only 4 types.  these patterns, this website contains information about 24 chart patterns.

There are many types of chart patterns available in the market according to different strategies and different techniques. Some people have understood this pattern from their experience in the market.

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