Stock Chart Patterns ↗️↔️↘️
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Stock chart patterns often signal transitions between rising and falling trends.
These patterns can be as simple as trendlines and as complex as double head-and-shoulders formations.
Since price patterns are identified using a series of lines or curves, it is helpful to understand trendlines and know how to draw them. Trendlines help technical analysts spot support and resistance areas on a price chart.
A chart pattern is a shape within a price chart that helps to suggest what prices might do next, based on what they have done in the past.
Chart patterns are the basis of technical analysis and require a trader to know exactly what they are looking at, as well as what they are looking for. 📊 👀
A continuation pattern can be considered a pause during a prevailing trend. This is when the bulls catch their breath during an uptrend or when the bears relax for a moment during a downtrend.
Reversal patterns are those chart formations that signal that the ongoing trend is about to change course. If a reversal chart pattern forms during an uptrend, it hints that the trend will reverse and that the price will head down soon.
Learn more about Best chart patterns 👇
by @valuelevels
Head and shoulders
Double top
Double bottom
Rounding bottom
Cup and handle
Wedges
Pennant or flags
Ascending triangle
Descending triangle
Symmetrical triangle
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