When a stock moves, it leaves a trail behind and in technical analysis we call this as chart patterns. If you become good at interpreting these chart patterns, you can easily predict the future direction and price of a stock. Charts patters fall in two categories. 1.Bullish patterns: These show that the stock will move up from here on and the other one is 2.Bearish pattern: which show that the stock is going to fall from here on. In this topic we will study 3 very important bearish chart patterns 1.Head and shoulders 2.Double top 3.Triple top which means the moment you see them on a chart of a stock you are holding, you should understand that it’s the time to sell this stock since it is going to fall from here on. Also If this stock trades in the F&O segment, it’s a good time to go SHORT.
