Author, @MrJangKen

ID: 766881381

Now that you’ve got candlestick patterns and volume down, it’s time to unlock the power of chart patterns — shapes that can predict market moves before they happen! Ready to read the market like a pro? Let’s go!

📐 What Are Chart Patterns?

Chart patterns are visual shapes formed by price movement. They help traders predict:

🔹Whether price will break up or down

🔹When trends are likely to continue or reverse

Think of them like road signs on the price journey!

🔺 Continuation Patterns (Price Likely to Keep Moving in Same Direction)

1. Symmetrical Triangle 🔺

🔹Price squeezes into a tight range

🔹Breakout can go up or down (watch volume!)

🔹Signal: Big move coming!

2. Bull Flag 🚩

🔹Sharp rise → small pullback → breakout upward

🔹Like a flag on a pole — shows bullish continuation

3. Bear Flag 🏴

🔹Sharp drop → small upward pullback → breakdown

🔹Same as bull flag but in reverse

🔄 Reversal Patterns (Price Likely to Change Direction)

1. Head & Shoulders

🔹Three peaks: tall middle (head), smaller sides (shoulders)

🔹Signal: Trend reversal from up to down 🐻

2. Inverse Head & Shoulders

🔹Flipped version of above

🔹Signal: Reversal from down to up 🐂

3. Double Top ⛰️⛰️

🔹Two peaks at the same level

🔹Signal: Bearish reversal

4. Double Bottom ⛳⛳

🔹Two dips at same price

🔹Signal: Bullish reversal

🧩 How to Use Chart Patterns Effectively

🔹Combine with volume (Part 3): Breakouts with high volume = stronger signals

🔹Confirm with candlestick patterns (Part 2)

🔹Watch for support/resistance at breakout zones (Part 1)

✅ Pro Tips

🔹Don’t rush — patterns take time to form

🔹Set alerts at breakout points

🔹Use patterns with risk management — always set stop-loss!

🚀 Final Thoughts

Chart patterns are like treasure maps for traders. When used with volume and candlesticks, they become powerful tools to catch early moves and avoid traps.

Up next in Part 5: We’ll dive into Risk Management & Trade Psychology — the ultimate tools to protect your capital!

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