Tulip formation

Tulip formation

Tulip formation is a term of technical analysis in financial markets added by Roni John. It's a chart formation which results generally by quick rises after a consolidation.

As seen at the right figure, the movement begins with a quick rise then continue with a brief consolidation. The concavity of the formation names it the "tulip formation". After completing the formation, the stock/commodity is likely to rise as much as the first movement (the stem of the tulip).


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