Patterns to Learn to Improve Trading in KLSE

Kuala Lumpur Stock Exchange, currently known as Bursa Malaysia, is a Malaysian Stock Exchange company that has managed to survive successfully since 1930.

For a KLSE trader, the most powerful tool in understanding the market and putting out bets is correctly analyzing the chart patterns.

KLSE trading patterns put all the trends of buying and selling stocks into one picture. This picture is often repetitive, which somehow appeals to human psychology.

What are Chart Patterns?

 A clear image of all the buying and selling that happens in the stock market is called a “chart pattern.” The help it provides is in determining the battle in the trade market while allowing traders to position themselves accordingly.

Features of KLSE Chart Patterns

The proper interpretation and understanding of KLSE chart patterns early can contribute to gaining a competitive edge.

Chart patterns are often found in reverse, continued, and bilateral formats. It is a pictorial representation of trading that helps analyze the bear’s and bull’s battles.

5 Trading Patterns in KLSE You Must Know

Let us look at five livestock trading patterns that every trader must know:

Pattern #1. Head and Shoulder

This is a reversal of the bearish and bullish patterns, with smaller side and larger middle peaks.

The Head and Shoulder Pattern:

• It is the most reliable reverse pattern.
• It is formed when the stock prices grow and fall simultaneously.
• The new rising price peak is higher than the previous one, while it declines to the original position.

Pattern #2. Double Top

The stock forms a peak and then falls to a support level. The next peak is formed before the reversal of the ongoing trend. It is a reverse bearish pattern that traders excessively use.

Pattern #3. Double Bottom

It is a reverse bullish pattern that contradicts the double top. In this, the stock price peaks, retracing back not to a level of support but resistance. It will again form a peak before moving away from the ongoing trend.

Pattern #4. Cup and Handle

This bullish reversal trend looks like a cup and a handle. The cup has a round button pattern, and the handle is like a wedge. Here, the cup’s shape is like a U while the handle drifts downwards. The right side’s trading volume is low, which might be as short as six weeks or as long as 65 weeks.

Pattern #5. Rounding Bottoms

This pattern, called’saucer bottom,’ is a long-term pattern (reversal). It represents the stock moving towards an upward trend from a downward trend. It is time taking and can take anywhere from months to years.

While there are many other patterns in the trading chart, these are a few that are basic. Understanding these patterns can help improve trading on a fundamental level. At The Learning Art, we help traders with advisory services, trading recommendations, and live stock tips from industry experts. We also provide them with technical help via forex signals that can further help them improve their trading. For any queries, connect now!