Identifying Trends Looking at Charts

The prevailing direction of a trend is higher lows for uptrend and lower highs for downtrend.

The more touches there are the more valuable the trend line. Make sure there are no candle sticks close above or below the trend line. Breaking downtrend line or uptrend line in either direction is a signal for a potential trend reversal.

Identifying Patterns:

Bull Flag

Clear parallel channel represents bull flag. Watch the breakout from the channel and confirmation going upwards from the channel.

Bull Flag

Descending Wedge Pattern

Zoomed

Bear Flag

Parallel channel going upwards with the clear break down.

Bear Flag

Triangle — pennant

Triangle

Lower highs or higher lows are going to indicate where the trend is going in the short term.