Join Dstockmarket Telegram Group

Join Dstockmarket Facebook Page

Chart Lessons From SPX - 60 Min Ascending Triangle And Reverse HnS

In this chart lesson we will learn how the 60 min ascending triangle and reverse head and shoulders that appear in the S&P 500 hinted of a reversal and new high.

Let us start off with the 60 min chart of the S&P 500 futures. The S&P had a correction but it eventually formed a 60 min ascending triangle.

The 60 min ascending triangle can also be used as a reversal pattern.

Note that the SPX also broke above a 60 min downtrend line. This told us that it wanted to change trend from bearish to bullish in the 60 min chart.

A large green candle formed as the SPX broke out of the ascending triangle.

The SPX then formed a bullish cross where the 60 min 20 MA goes back above the 60 min 50 MA.

After some time, the SPX also formed a 60 min reverse head and shoulders. I have drawn it in blue colour.

The reverse head and shoulders can actually be used to set a target. If we take the height of the pattern from the neck and project it upwards, we can find a possible target.

As you can see, the SPX has already met the reverse head and shoulders target. The SPX also made a new high.

Sometimes its good to have a look at the daily chart as well.

As you can see, the SPX is in a daily uptrend. The SPX dropped to the daily 20 MA and this is where the 60 min ascending triangle appeared.

The 20 MA can usually be a support area or reversal area when a stock or index is in an uptrend.

Indices that are in an uptrend tend to go higher and dips and breakouts can be bought.

Conclusion

The combination of two patterns in the 60 min chart can often be very powerful. In this case, the 60 min ascending triangle hinted of a reversal and the 60 min head and shoulders helped to set a possible target.

  • Help support this page and press the Facebook Like button below. Thanks!

Join Dstockmarket's Facebook Page 

Recent Articles

  1. Chart Lesson February 4th Week 2021

    Feb 25, 21 07:54 AM

    In this week we will have a look at VUZI, KSS, PBCT, CBRE, SPG, KPOWER and the lessons from their chart.

    Read More

  2. Chart Lessons February 3rd Week 2021

    Feb 17, 21 09:44 AM

    In this week's chart lessons, we will be looking at NVDA, SPX and KLCI, LKCO and MVIS.

    Read More

  3. Chart Lessons 2nd Week February 2021

    Feb 10, 21 08:10 AM

    Let's take a look at the SPX and MSFT, TLRY and KGB this week. Continuation patterns can be strong indication of bullishness.

    Read More

  4. Chart Lessons Feb 2021 1st Week

    Feb 04, 21 12:21 AM

    In this week chart lesson we will have a look at the S&P 500 as well as Top Glove and also Bitcoin.

    Read More

  5. Chart Lessons 4th Week Jan 2021

    Jan 25, 21 10:59 AM

    This week's chart lessons. Some interesting developments in TSLA and AAPL.

    Read More

New! Comments

Have your say about what you just read! Leave me a comment in the box below.