The 6 Best Chart Patterns Every Trader Should Know!👇

🔻 1. Double Top – Bearish Reversal

Two peaks at the same level followed by a break of the neck line.

📍 Entry: Below the neck line

📉 Target: Height of the pattern

🛑 Stop: Above the second peak

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🔻 2. Head and Shoulders – Bearish Reversal

A large peak (head) between two smaller peaks (shoulders), breaking below the neck line.

📍 Entry: Break of the neck line

📉 Target: From the head to the neck line

🛑 Stop: Above the right shoulder

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🔻 3. Ascending Wedge – Bearish Continuation

Price narrows on an upward slope—often a setup for a break.

📍 Entry: After breaking the wedge

📉 Target: Start of the wedge

🛑 Stop: Just above the upper line of the wedge

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🔺 4. Double Bottom – Bullish Reversal

Two troughs forming a “W” pattern, followed by a break of the neck line.

📍 Entry: On break of the neck line

📈 Target: Same height as the bottom to the neck line

🛑 Stop: Below the second trough

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🔺 5. Inverted Head and Shoulders – Bullish Reversal

A large trough (head) between two smaller troughs (shoulders) signaling a break to the upside.

📍 Entry: Break above the neck line

📈 Target: Neck line to the bottom of the head

🛑 Stop: Below the right shoulder

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🔺 6. Descending Wedge – Bullish Continuation

Price contracts downward between two converging lines—usually leads to a break.

📍 Entry: On break

📈 Target: From the base of the wedge

🛑 Stop: Below the support of the wedge

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💡 Pro Tips:

Combine chart patterns with volume, RSI, or moving averages for stronger confirmation.

🎯 Master these patterns. Trade with confidence.

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