If you are learning to trade, these chart patterns can greatly assist you in making smart decisions.

Let's understand in simple words when these patterns form and what they mean: 👇

🔹 Cup and Handle

This pattern forms when the market first dips, then gradually rises and forms the shape of a cup. After that, a slight downward correction occurs (creating the handle).

👉 Signal: Strong buying may occur on the handle breakout. This is a bullish signal.

🔹 Rounding Bottom

This pattern forms when the market gradually goes down and then gently turns up.

👉 Signal: This is a positive reversal indication. The market could rise for a long time.

🔹 Diamond Top

This pattern forms when the price fluctuates significantly and the arrangement of candles resembles a diamond.

👉 Signal: This is a bearish signal, meaning the market could decline.

🔹 Diamond Bottom

This pattern is similar to the Diamond Top, but it forms on the downside.

👉 Signal: There is a possibility of a strong reversal here, meaning the market could rise.

🎯 When are these patterns more reliable?

✅ When a significant reversal is about to occur in the market

✅ When support and resistance lines are clearly visible

✅ When the volume also confirms the breakout

Important Note:

Chart patterns are not always 100% accurate.

Always seek confirmation with other indicators and do not ignore risk management.

"Learning to trade?

These chart patterns can help you become a successful trader!

Explained in simple words.

Learn, understand, and make smart decisions!

Save it for future reference.

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