**Top 6 Must-Know Chart Patterns for Every Trader! 📊**

Master these classic formations to boost your technical analysis game:

👇 Let’s dive in:

🔻 **1. Double Top – Bearish Reversal**

A pattern formed by two peaks at a similar level, signaling a potential trend reversal.

📌 **Entry:** After price breaks below the neckline

🎯 **Target:** Distance from top to neckline

🛑 **Stop Loss:** Just above the second top

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🔻 **2. Head & Shoulders – Bearish Reversal**

Features a central peak (head) flanked by two lower peaks (shoulders). A neckline break confirms the move.

📌 **Entry:** On neckline breakdown

🎯 **Target:** Height from head to neckline

🛑 **Stop Loss:** Above the right shoulder

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🔻 **3. Rising Wedge – Bearish Continuation**

An upward narrowing channel that typically leads to a downside breakout.

📌 **Entry:** On break below wedge support

🎯 **Target:** From wedge start to breakdown

🛑 **Stop Loss:** Just above the upper trendline

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🔺 **4. Double Bottom – Bullish Reversal**

A “W”-shaped setup where two lows signal a bottoming out and a bullish breakout.

📌 **Entry:** On breakout above the neckline

🎯 **Target:** Distance from bottom to neckline

🛑 **Stop Loss:** Just below the second bottom

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🔺 **5. Inverse Head & Shoulders – Bullish Reversal**

Mirroring the classic H\&S, this pattern signals an upcoming bullish move.

📌 **Entry:** After neckline breakout

🎯 **Target:** From head low to neckline

🛑 **Stop Loss:** Below the right shoulder

🔺 **6. Falling Wedge – Bullish Continuation**

A downward tightening formation that often leads to an upside breakout.

📌 **Entry:** On breakout above resistance

🎯 **Target:** Height of the wedge

🛑 **Stop Loss:** Just below the wedge support

💡 **Pro Tip:**

For higher probability trades, combine these patterns with indicators like RSI, volume spikes, or moving averages.

🎯 Know these patterns. Trade smarter.

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