Technical analysis Tutorial

A Chart Pattern is a distinct pattern formed on stocks/commodity chart which help in identifying the future price movements.
Chart Patterns are broadly classified in two types:
Reversal Patten: This pattern signals the previous trend will reverse upon completion of this pattern. Eg double top, Double bottom, island reversal, rounding bottom, Descending triangle
Continuation Pattern: This pattern signals that trend will continue upon completion of this pattern Eg. Ascending Triangle, Symmetrical triangle, Cup with handle, Flag pattern.

Triangle Chart pattern:
When price of stock/commodity stays in a trading range and with passage of time the trading range becomes smaller ie. Contraction of price and convergence of trendline leads to formation of triangle pattern.  Triangle pattern are generally identified by consolidation in the trend followed by breakout pattern in direction of continuing trend.
Lets take an Example of..


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