Top 6 Chart Patterns Every Smart Trader Should Master! 📊🔥
Unlock powerful setups with these classic formations👇
🔻 1. Double Top – Bearish Reversal
Price hits the same resistance twice, then breaks below the neckline—signals selling pressure.
📍 Entry: Once neckline support is breached
📉 Target: Equal to the peak-to-neckline distance
🛑 Stop-Loss: Just above the second top
🔻 2. Head & Shoulders – Bearish Setup
A high (head) surrounded by two smaller highs (shoulders). Breakdown below neckline confirms downtrend.
📍 Entry: On neckline breakdown
📉 Target: Height from head to neckline
🛑 Stop-Loss: Above the right shoulder
🔻 3. Rising Wedge – Bearish Continuation
Price coils upwards between converging trendlines—momentum fades before a drop.
📍 Entry: After price breaks below wedge support
📉 Target: Height of wedge base
🛑 Stop-Loss: Just above upper trendline
🔺 4. Double Bottom – Bullish Reversal
Forms a “W” as price finds strong support twice. A neckline breakout confirms trend reversal.
📍 Entry: On breakout above neckline
📈 Target: Distance from bottom to neckline
🛑 Stop-Loss: Slightly below second bottom
🔺 5. Inverse Head & Shoulders – Bullish Reversal
Three dips—middle one deeper (head)—signal strength building for upside.
📍 Entry: Once neckline is broken upward
📈 Target: From head low to neckline
🛑 Stop-Loss: Just under the rig$wht shoulder
🔺 6. Falling Wedge – Bullish Continuation
Price compresses downward between converging lines. Watch for breakout!
📍 Entry: On breakout above wedge resistance
📈 Target: Base height of wedge
🛑 Stop-Loss: Under lower trendline
💡 Quick Tips for Better Results:
✔ Combine with indicators like RSI, MACD, or volume spikes
✔ Look for confirmation candles
✔ Always manage your risk!
🎯 Learn these patterns. Apply them wisely. Win smarter.
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DYOR No Financial advice!
