Series 65: Bullish Patterns

Taken from our Series 65 Online Guide

Bullish Patterns

Reverse head and shoulders—opposite pattern to the head and shoulders and predicts an upward trend in the stock above resistance.

Double bottom—a valley followed by a peak followed by another valley of approximately the same height as the first valley. The intervening peak is believed to be the “neckline,” and after the second valley, if prices rise above the neckline, then this confirms the formation of a double bottom, which signals the end of a bear (declining) trend.

Cup and handle—a U-shaped curve with a slight downward handle will occur before a significant upward trend.

Saucer—a flat cup

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