Bilateral Patterns
We can call these types of patterns bilateral since
they can break to both sides, either to continue
in their trend to break structure.
Descending triangles
A descending triangle is a pattern that connects the
Lows forming a support (neckline) and consecutively
connect the LH forming a resistance of shape
diagonal. In this example we can see how the pattern
breaks our last LH which was the last point of
structure that maintained the bearish trend, in addition to
break the downward trend line.
To take advantage of this pattern in this example is
necessary to wait for the pullback of the first HH and take a
purchase in our first HL.
Now that we know how the formation of this pattern is,
in this example we can notice that the continuous pattern with
its downward trend breaking support.
To take advantage of this example we have to wait for
that the price breaks the support validly to enter
in a sell, or wait for the first LH after breaking
support to enter a sale.
Ascending triangles
An Ascending Triangle is a pattern that connects the
Highs (H) forming a resistance (neck line) and
consecutively connect the higher lows (HL) forming
a support in a diagonal shape.
In this example, we can see that the pattern continued with
its upward trend breaking resistance.
To take advantage of this movement we have to
wait for the price to break resistance validly
to enter a purchase, or wait for the first HL after
to break resistance to enter a purchase.
In this example, we can see how the pattern breaks.
our last higher low (HL) which was the last point of
structure that maintained the upward trend, in addition to
break the upward trend line.
To take advantage of this pattern in this example is
it is necessary to wait for the pullback of the first lower low (LL) and
take a sell at our first lower high (LH) or high
(H).
Symmetrical triangles
A symmetric triangle is a pattern that creates a
consolidation, forming at the top a
diagonal resistance which connects to the lower highs (LH) and
at the bottom forming a diagonal support that
connect the higher lows (HL).
To take advantage of this example we have to wait for
that the price breaks resistance which is our last lower
high (LH) and wait for the pullback of the first higher high (HH)
to enter a buy in our first higher low (HL).
In this second example, we can see that the price comes
of a bearish trend forming lower lows (LL) and lower
highs (LH), then the price consolidated forming the pattern
symmetrical triangle and additionally structuring higher low (HL)
Y lower high (LH).
To take advantage of this movement we have to
break support that was our last higher low (HL),
wait for the pullback of our lower low (LL).
Consolidation rectangle
A consolidation rectangle is a pattern that forms
a resistance creating highs (H) and a support creating
lows (L). In this movement, we can see that the pattern
breaks a bullish trend to bearish. To take
advantage of this movement we would have to wait for
break support validly in order to be able to enter afterwards
with a sale or wait for the pullback of the first lower low
(LL) and take a sell at the first lower high (LH).
In this movement we can see that the continuous pattern
with the bullish trend forming a new higher high
(HH) after breaking our resistance.
To take advantage of this movement we have to
break resistance validly to enter afterwards into
a purchase or wait for the pullback of the higher high HH and
make a purchase in the first HL.
Patterns of Change of
Structure
The patterns of structural change are those that we
changes from bullish structure to bearish or vice versa, bearish to
alcista.
Shoulder, Head, Shoulder. (HEAD AND
SHOULDERS
Head and shoulders is a pattern that changes structure.
from bullish to bearish, from higher high (HH) to higher low (HL)
we can see the formation of the first left shoulder the
which after forming a higher high (HH) and a low (L),
they form the head, in addition to having formed the neck line
from the pattern that is the support, we finally form a lower
high (LH) creating the right shoulder and finally
we break support by creating a lower low (LL).
To take advantage of this type of movement we must
wait to break our support in a valid way, which
can give us a first sales opportunity, the
second chance to take advantage of this pattern is
wait for the pullback of the lower low (LL) and enter a sell on
the next lower high (LH).
Shoulder, Head, Inverted shoulder.
(INVERTED HEAD AND SHOULDERS).
Inverted Head and Shoulders is a reversal pattern
our structure from bearish to bullish, of the higher low (HL)
At the lower high (LH) we can see the formation of the first
left shoulder which later forms a lower low (LL) and
a high (H), form the head, in addition to having formed the
neckline of the pattern that is the resistance, lastly
we formed a higher low (HL) creating the right shoulder and
finally we break resistance by creating a higher high
(HH).
To take advantage of this movement we must
wait to break resistance in a valid way, which will
can give a first buying opportunity, the second
opportunity to take advantage of this pattern is to wait
the pullback of the higher high (HH) and enter into a buy in the
next higher low (HL).
Double Bottoms
Double bottom is a pattern that breaks structure of
from bearish to bullish, as we can see in this movement the
pattern forms a lower low (LL) and lower high (LH) forming
the first bottom, consequently forms a low (L)
respecting the same support zone formed by the lower
low (LL) anterior, this forms our pattern, which tends to
break resistance formed by the previous lower high (LH)
breaking resistance the pattern breaks from bearish to bullish
forming a new higher high (HH).
To take advantage of this movement, we can take
a purchase after breaking resistance validly
or wait for the pullback of the first higher high (HH) and enter
buying at the higher low (HL).
Double Bottom is a pattern that breaks from bearish to bullish.
we can also consider this training as a
uptrend continuation pattern. If we see in
the example the price forms a higher high (HH) forming a
resistance area, then we have the first higher low
(HL) which forms the first bottom, consecutively
we have a high (H) and low (L) forming the second bottom
which respects the same support zone created by the
higher low (HL) anterior. This creates a new momentum which
breaking resistance which is our neck line and will create a
new higher high (HH), the price continues to maintain its
bullish structure.
To take advantage of this movement, we can enter in
buy after breaking our resistance in a way
Validate or wait for the pullback of the higher high (HH) and enter.
buy at the higher low (HL).
Double tops
Double Top is a pattern that breaks from bullish to bearish.
that is why it is considered a pattern of structural change.
As we can see in this example, the pattern forms a
higher high (HH) and higher low (HL) forming the first
ceiling or top, consecutively forms a high (H)
respecting the same resistance zone formed by the
higher high (HH) before, this forms the pattern which
tends to break support formed by the higher low (HL)
anterior, breaking our support which is our neck
line, the pattern breaks from bullish to bearish forming a new
lower low (LL).
To take advantage of this movement, we can take
a sell after breaking support in a valid way or
wait for the pullback of the first lower low (LL) and enter in
buy at the lower high (LH).
Although a Double Top is a pattern that breaks from bullish to
bassist we can also consider this formation as
a continuation pattern of a bearish trend.
If we look at the example, the price forms a lower low (LL).
forming a support area, then we have the first
lower high (LH) that forms the first peak or top,
consecutively we have a low (L) and a high (H)
forming the second roof which respects the same area
of resistance created by the previous lower high (LH). This
generate a new momentum that breaks support (neckline)
it will create a new lower low (LL), the price continues
maintaining its bearish structure.
To take advantage of this movement, we can enter into
sale after breaking support validly or
esperar el retroceso del lower low (LL) y entrar en venta en
the lower high (LH)