#PATTERN Stock chart patterns often signal transitions between trends. A price pattern is a recognizable configuration of price movement identified using a series of trendlines and/or curves. When a price pattern signals a change in trend direction, it is known as a reversal pattern. A continuation pattern forecasts that the trend will continue in its existing direction, possibly after a brief pause. But, there are many patterns used by traders—here is how patterns are made and some of the most popular ones.