๐ Top 6 Chart Patterns Every Trader Must Know!๐
๐ป 1. Double Top โ Bearish Reversal
Two peaks at the same level followed by a breakdown of the neckline.
๐ Entry: Below neckline
๐ Target: Height of the pattern
๐ Stop: Above the second top
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๐ป 2. Head and Shoulders โ Bearish Reversal
A large peak (head) between two smaller peaks (shoulders), breaking below the neckline.
๐ Entry: Break of neckline
๐ Target: From head to neckline
๐ Stop: Above right shoulder
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๐ป 3. Rising Wedge โ Bearish Continuation
Price tightens in an upward slopeโoften a setup for a breakdown.
๐ Entry: After breaking down the wedge
๐ Target: Start of the wedge
๐ Stop: Just above the upper wedge line
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๐บ 4. Double Bottom โ Bullish Reversal
Two bottoms forming a โWโ pattern, followed by a neckline breakout.
๐ Entry: On neckline breakout
๐ Target: Same height as the bottom-to-neckline
๐ Stop: Below the second bottom
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๐บ 5. Inverse Head and Shoulders โ Bullish Reversal
A large dip (head) between two smaller dips (shoulders) signaling upside breakout.
๐ Entry: Break above neckline
๐ Target: Neckline to bottom of head
๐ Stop: Below right shoulder
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๐บ 6. Falling Wedge โ Bullish Continuation
Price contracts downward between two converging linesโusually leads to a breakout.
๐ Entry: On breakout
๐ Target: From wedge base
๐ Stop: Below wedge support
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๐ก Pro Tips:
Combine chart patterns with volume, RSI, or moving averages for stronger confirmation.
๐ฏ Master these patterns. Trade with confidence.
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Here is the candles image photo๐
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