# Trading Central Technical

Events

Learn more about the chart patterns covered

by our proprietary algorithms.

## Technical Analysis and Technical Events

Technical Analysis is the practice of anticipating changes in a financial instrument’s price by finding patterns within it’s price history. It is the quantitative side of investment research, and both supports and complements other views, such as Fundamental Analysis, where investors use a company’s financial information such as earnings or debt to determine if it is an appropriate investment.

Coined by Trading Central, a Technical Event® signifies an important pattern or activity has occurred, such as the price crossing a critical line or threshold. Technical Events highlight price situations that may be worth considering in researching an investment activity. Technical Events can be used by investors to make more informed decisions about when to:

- Enter a new position
- Close an existing position
- Wait for a better time to take action

## Technical Events covered

Trading Central’s **patented pattern recognition** is paired with the **industry’s largest library of technical analysis** including classic patterns, candlesticks, Elliott Wave and indicators like Bollinger Bands and MACD. This allows our flagship products such as Technical Insight to **analyze virtually every publicly traded financial instrument** including stocks, ETFs, indices, foreign exchange and futures.

Explore the different chart patterns we cover and their implications on an instruments price below:

## Classic Chart Patterns

“Classic” is a term used to refer to a group of patterns that typically have a longer-term horizon (greater than 12 days) and which have distinct price swings such that the price swings form distinctive patterns. The names of classic patterns often reflect the shape of the formation such as the Double Top, Double Bottom, Head and Shoulders Top, Ascending Triangle and so on.

**Ascending Continuation Triangle**

**Bottom Wedge / Triangle**

**Continuation Diamond**

**Continuation Wedge**

**Diamond Bottom**

**Double Bottom**

**Flag**

**Head and Shoulders Bottom**

**Megaphone Bottom**

**Pennant**

**Rounded Bottom**

**Symmetrical Continuation Triangle**

**Triple Bottom**

**Upside Breakout**

**Continuation Diamond**

**Continuation Wedge**

A Continuation Wedge (Bearish) consists of two converging trend lines. The trend lines are slanted upward. Unlike the Triangles where the apex is pointed to the right, the apex of this pattern is slanted upwards at an angle. This is because prices edge steadily higher in a converging pattern i.e. there are higher highs and higher lows. A bearish signal occurs when prices break below the lower trendline. Over the weeks or months that this pattern forms the trend appears upwards but the long-term range is still downward.

**Descending Continuation Triangle**

**Diamond Top**

**Double Top**

**Downside Breakout**

**Downside Breakout**

**Flag**

**Head and Shoulders Top**

**Megaphone Top**

**Pennant**

**Rounded Top**

**Symmetrical Continuation Triangle**

**Top Triangle – Top Wedge**

**Top Triangle – Top Wedge**

## Short-term Chart Patterns

Short-term patterns are based on the shape and relationship of the candlestick(s) or price bar(s) representing one or multiple consecutive trading days. This includes patterns such as the Hanging Man and the Gap Up. The technical event is the confirmation that the pattern has formed in the price bar(s). These Technical Event ® opportunities are useful for suggesting possible short-term price movement. They are also useful for supporting or refuting the possible price movement suggested by classic patterns. Short-term patterns are often considered as supplementary information.

**Engulfing Line**

**Exhaustion Bar**

**Gravestone**

**Hammer**

**Inside Bar**

**Inverted Hammer**

**Island Bottom**

**Key Reversal Bar**

**Outside Bar**

**Two Bar Reversal**

## Indicators

Indicators that are currently supported are based on moving average calculations.

**Double Moving Average Crossover**

**Price Crosses Moving Average**

**Triple Moving Average Crossover**

## Oscillators

Oscillators are based on mathematical formulas that incorporate historical or recent prices of the stock