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 bullish chart patterns which will help you identify the right stocks for buying and they are
1. Rounding bottom
2. Double bottom
3. Triple bottom
The whole intention of Technical analysis is that we make our investment decisions based on studying charts and not simply invest on the basis of rumors or emotions.