Bullish Patterns Explained

Bullish patterns are those that suggest that prices are going up and everything is good, in contract to of course bearish patterns which state that the opposite is the case.

Some of these types of patterns are as follows:

Saucer bottom - imagine what the bottom of a large saucer looks like to understand this - it goes down a bit but ultimately comes back out.

Then there is the breakout, where there is a general small pattern down, but then a big move up indicating that the price has 'broken out' of a general little small move down.

A double bottom also makes sense, like a sort of 'W' shape, where it goes down a bit, and then afterwards the general trend is back up.

The final one is the inverse head and shoulders, as there is the head and shoulders in the bear patterns then the reverse of this must be the inverse, and indeed it is. And with this one you see that a breakaway happens from a pattern and in this case as it goes up then it's a positive indicator.

And essentially those are the four key bullish patterns that are used in technical analysis.

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