Tag Archive for: Technical analysis

Rising Wedge Patterns

How To Recognize and Trade Rising Wedge Patterns

The rising wedge is a well-known chart pattern in technical analysis, often viewed as a potential signal of a trend reversal from bullish to bearish. However, beginner traders often encounter several challenges: how to accurately identify and confirm a rising wedge, use it in trading, and whether the pattern can genuinely yield profits. In this […]

falling wedge pattern

What Is the Falling Wedge Pattern and How Does It Work?

The falling wedge is a chart pattern (or formation) in technical analysis that belongs to the category of triangle patterns. According to classical interpretations, the falling wedge signals a potential trend reversal. But does this hold true in practice? In this article, aimed at beginner traders, we examine the falling wedge in more detail: how […]

Triple Top Pattern Definition, Formation and How To Trade

Triple Top Pattern: Definition, Formation, and How To Trade

The triple top pattern is a classic technical analysis formation that typically occurs during an uptrend and signals a potential reversal to a downtrend. It forms when the price reaches a resistance level three times but fails to break through, after which it begins to decline. In practice, the triple top pattern may not perform […]

Liquidity Grab in Trading

Liquidity Grab in Trading: Meaning, Trading Strategy, and Pattern

A liquidity grab is a simple pattern from the Smart Money Concept (SMC) approach. It occurs when the price briefly breaks above or below a previous high or low—but instead of continuing, it quickly snaps back. While the move is usually small in terms of price, it plays an important role in shaping market structure. […]

Triple Bottom Pattern

Triple Bottom Pattern: Definition, Formation, and Trading Strategies

According to the principles of classical technical analysis, a triple bottom is a reversal pattern that forms after a pronounced downtrend and signals a potential reversal to the upside. In real trading, the triple bottom pattern is rare and does not always serve as a reliable buy signal. This can pose difficulties, particularly for beginners, who […]

Rectangle in trading What it Means

Rectangle: What It Means, How It Works, Examples

A rectangle is a technical analysis pattern that forms when the price moves between clearly defined support and resistance levels. In this article, we will explain how to trade the rectangle pattern and how traders can significantly improve their performance using ATAS’s powerful volume analysis tools. They will help you gain deeper insights into market […]

What is a Liquidity Sweep

What Is Liquidity Sweep? How to Trade It?

Liquidity plays a central role in the Smart Money Concept (SMC) methodology. According to this approach, the price movement is driven not merely by an imbalance between buyers and sellers but primarily by liquidity. Price fluctuations occur as the market moves from one liquidity zone to another. A liquidity sweep is a key concept in […]

Hanging Man Pattern

Hanging Man Candlestick Pattern: Definition, Structure, Trading, Advantages, and Disadvantages

The Hanging Man is a Japanese candlestick pattern that often appears at the top of an uptrend, signaling a possible end of the current price increase. Trading with the Hanging Man pattern typically involves opening a short position in a rising market, which carries higher risks. This article explores how to reduce those risks and […]

What Is the Doji Pattern

What Is a Doji Candle Pattern, and What Does It Tell You?

The doji pattern is a candlestick where the opening and closing prices are nearly the same. While doji candles are a common feature on charts, the real challenge lies in the uncertainty during their interpretation. Traders are often advised to consider the broader market context and use additional tools to enhance their trading strategies. In […]

Bear Trap in Trading

What Is a Bear Trap and How to Use It in Trading?

A bear trap is a market situation that can mislead inattentive traders. It consists of two movements: First, the asset price falls, creating the illusion of the beginning of a downtrend. Traders anticipating further decline rush to sell the asset, becoming bears. However, shortly after, the price begins to rise. This usually happens very rapidly, […]