Technical Analysis & Chart Patterns
3 terms
Inverse Head and Shoulders
Technical Analysis & Chart Patterns
qualitative
A formation of three troughs in which the middle trough is the lowest and the outer two are roughly level, joined by a neckline through the intervening highs.
Neckline = line through the two highs between the troughs; conventional measured move = Head Depth below Neckline, projected up from the break
Inverted Hammer
Technical Analysis & Chart Patterns
qualitative
A candlestick with a small body near the bottom of its range and a long upper wick, appearing after a decline.
Test: Upper Wick is at least twice the Body, Lower Wick is minimal, and the candle follows a decline
Island Reversal
Technical Analysis & Chart Patterns
qualitative
A cluster of periods isolated on both sides by gaps in opposite directions, leaving it detached from the surrounding chart.
Test: a gap in one direction, one or more periods of trading, then a gap back in the opposite direction, with the two gaps overlapping in price