6 Top Chart Patterns Every Trader Must Know!👇
🔻 1. Double Top – Reversal Down
Two peaks at the same level followed by a break of the neckline.
📍 Entry: Below the neckline
📉 Target: Height of the pattern
🛑 Stop loss: Above the second peak
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🔻 2. Head and Shoulders – Reversal Down
A large peak (head) between two smaller peaks (shoulders), breaking below the neckline.
📍 Entry: Break above the neckline
📉 Target: From head to neckline
🛑 Stop loss: Above the right shoulder
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🔻 3. Ascending Peak – Continuation Down
Price tightens in an upward slope - often a setup for a breakout.
📍 Entry: After breaking the peak
📉 Target: Start of the peak
🛑 Stop loss: Just above the upper line of the peak
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🔺 4. Double Bottom – Reversal Up
Two bottoms form a 'W' pattern, followed by a breakout of the neckline.
📍 Entry: When breaking the neckline
📈 Target: Height equal to the distance from the bottom to the neckline
🛑 Stop loss: Below the second bottom
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🔺 5. Inverted Head and Shoulders – Reversal Up
A large dip (head) between two smaller dips (shoulders) signals an upward breakout.
📍 Entry: Break above the neckline
📈 Target: Neckline to the bottom of the head
🛑 Stop loss: Below the right shoulder
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🔺 6. Descending Peak – Continuation Up
Price tightens between two converging lines - often leading to a breakout.
📍 Entry: When breaking out
📈 Target: From the bottom of the peak
🛑 Stop loss: Below the support line of the peak
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💡 Pro tip:
Combine chart patterns with volume, RSI, or moving averages for stronger confirmation.
🎯 Master these patterns. Trade with confidence.
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This is a candlestick image👇
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