Technical Analysis- Saucers

Saucers are a chart pattern in which a given securities price will gradually fall, reach a minimum, then begin to rise- this chart formation will form a saucer type formation. This pattern is evidence that the quantity of investors purchasing a given security rises slowly above those investors selling that security. Demand of the security slowly exceeds supply causing the security's price to rise- this is in effect a bullish sign to investors. This will show a good time to purchase a security- buy low sell high.

Another type of saucer is an inverse saucer where the opposite of a saucer is true. With an inverse saucer, prices will gradually rise, reach a maximum, then begin to fall- this chart formation will form an inverted saucer. This pattern is evidence that the quantity of investors purchasing a given security slowly falls below those investors selling that security. Demand of the security slowly falls behind supply causing the security's price to fall- this is in effect a bearish sign to investors. This type of situation could call for a time to sell or sell short.




Trend analysis
Support and Resistance Levels
Head and Shoulders Formation
Saucers
Breakouts
Consolidation