Does backdating explain the stock price pattern
In the world of technical analysis there are a lot of traders who talk about price action patterns but few actually discuss how accurate they are in the live market.
There are a number of useful patterns we watch for here at Samurai Trading Academy and although we don't trade these patterns directly, they are very useful to understand the current structure of the market and quickly assess our trading opportunities.
The double top/bottom is one of the most common reversal price patterns.
The rectangle price pattern is a continuation pattern that follows a trending move.
The ascending channel pattern is defined by a bullish trending move followed by a series of lower highs and lower lows, that form parallel trendlines containing price.
The descending channel pattern is defined by a bearish trending move followed by a series of higher lows and higher highs, that form parallel trendlines that contain price.
The requirements for a completed pattern are discussed below for each individual case.
The flag is a continuation pattern that can occur after a strong trending move.