Chart Pattern: Pipe Top and Pipe Bottom

In earlier posts I have written about chart pattern; the posts are

• Chart Pattern: Double Top and Double Bottom 
• Chart Pattern: The Triangle Pattern 
• Chart Pattern: Diamond Bottom and Top Chart Pattern 
• Trading the Crown or trading head and shoulders 

In this post is the pipe top and pipe bottom illustrated. It is a pattern that gives the traders an indication of in which direction the price is moving in.

Pipe top
The pip top pattern is a pattern that ends in a top and then starts to fall; the image illustrates a bullish trend; the pattern ends with two candlesticks; when the lowest of the two lows ends the price is expected to fall.

Pipe bottom
The pip bottom pattern is a pattern that ends in a bottom and then starts to rise; the image illustrates a bearish trend; the pattern ends with two candlesticks; when the highest of the two highs ends the price is expected to rise.

 

Note
In the post is the term bullish and bearish used; a bullish market is when the price is rising and a bearish market is when a price is falling.

In the post is also the term candlestick used; more information about what a candlestick is in the article “Trading Forex Online? What Is a Candlestick Chart and How to Read a Candlestick Chart?”