📐 Chart Patterns

📐 Chart Patterns

Part of Complete Stock Market Learning Series


📌 What Are Chart Patterns?

Chart patterns are repeated price formations created by market psychology. They help traders anticipate future price direction based on historical behavior.

🏷 Types of Chart Patterns

  • Continuation Patterns
  • Reversal Patterns
  • Bilateral Patterns

➡ Continuation Patterns

These patterns indicate a pause before the trend continues in the same direction.

  • Flag Pattern
  • Pennant Pattern
  • Rectangle Pattern

📊 Continuation Pattern Example (Flag)

Uptrend

👉 Price consolidates briefly, then breaks in trend direction.

🔄 Reversal Patterns

Reversal patterns signal a possible change in the existing trend.

  • Head & Shoulders
  • Double Top
  • Double Bottom

📊 Reversal Pattern Example (Double Bottom)

Downtrend

👉 Two strong lows → buyers regain control → upside breakout.

↔ Bilateral Patterns

Bilateral patterns do not predict direction; breakout can happen on either side.

  • Symmetrical Triangle
  • Wedge Pattern

📊 Bilateral Pattern Example (Triangle)

👉 Wait for breakout direction with volume confirmation.


⚖ Important Note

Chart patterns work best when combined with volume, support–resistance, and indicators. Never trade patterns blindly. This content is for educational purposes only.


🚀 Learn Chart Patterns Practically

Understand real pattern formation, breakouts, and failures with live market examples. Advanced strategies are included in premium programs.

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