This First 2 boxes of this picture shows the Bullish Flag and Bearish Flag

Bearish Flag Pattern

Bullish Flag Pattern

So we’re done with continuation patterns, now let’s move on to neutral patterns

Ascending Triangle
This type of triangle chart pattern occurs when there is a resistance level and a slope of higher lows.
What happens during this time is that there is a certain level that the buyers cannot seem to exceed.
However, they are gradually starting to push the price up as evident by the higher lows.

Descending Triangle
As you probably guessed, descending triangles are the exact opposite of ascending triangles ( I knew you
were smart!). In descending triangle chart patterns, there is a string of lower highs which forms the upper
line. The lower line is a support level in which the price cannot seem to break.

Symmetrical Triangle
A symmetrical triangle is a chart formation where the slope of the price’s highs and the slope of the
price’s lows converge together to a point where it looks like a triangle.
What’s happening during this formation is that the market is making lower highs and higher lows. This
means that neither the buyers nor the sellers are pushing the price far enough to make a clear trend.
Now one thing you must know is chart patterns predicts breaks
Some chart patterns predict that price would break to the upside, some to the down side, and others to either of both sides
Looking at the definition earlier, what direction do you think it’s going to break out to?

Expanding Triangle
An expanded triangle is a chart formation where the slope of the price’s highs and the slope of the
price’s lows expands.
This means that neither the buyers nor the sellers are pushing the price far enough to make a clear trend while still gaining little momentum.

Now, also looking at the definition earlier, what direction do you think it’s going to break out to?

Remember this is under Neutral patterns and neither the buyers nor sellers are dominating so at the end, either of them can win control. So it can go either direction

INDICATORS
What are indicators;
Indicator are tools used to forecast future prices.
it helps in determining where the market prices might be headed.

Here are list of some major and popular indicators you can work with, I’ll be explaining them one after the other and also telling you how you can trade with them
1. Moving average[EMA (Exponential moving average) and SMA(simple moving average)]
2. RSI(Relative strength index)
4. Stochastic
5. Bollinger band
6. MACD
7.ADX( Average directional index)
8. Parabolic Star

You have to also know that despite these indicators proving to be very profitable, they are not 100% accurate, that’s why you have risk management that would be discussed later in this class

With practice, you’ll be able to further understand how your indicators work and be more profitable with it

We’ll go on to a first indicator now which is the RSI
We’ll start with the RSI

*R.S.I (RELATIVE STRENGTH INDEX)*
The R.S.I is a popular indicator used by a lot of traders, it’s very straight forward.
It is used to identify reversal points in the market.

How it works;
The R.S.I is scaled from 0 to 100 from bottom to top. When the R.S.I line crosses above the 70 mark
towards 100, it indicates overbought(the market has been buying, and there are not enough bulls in the market anymore, and the market is set to reverse). when it crosses below the 30 mark towards 0, it
Indicates over sold (the market has been selling, and there are not enough bears in the market anymore, and the market is set to reverse).

How to trade with the R.S.I
When the R.S.I line crosses the 70 mark towards 100 it shows a sell opportunity, and when it crosses the
30 mark towards 0, it shows a buy opportunity

You buy at point 1 becauased the market has over sold and the buyers are about to take control

Then you sell at point 2 because the market has over bought which indicates the seller about to take control of the market

Bollinger band
Bollinger band is used to measure market volatility.

How it works;
The bollinger band expands when there is high volatility and contracts(closes up) when there is low volatility in the market.
Looking at the diagram below, we can see that the bollinger band closes for some time and then expands.