This chart categorizes patterns into four groups: Continuation, Neutral, Reversal, and Special. Each pattern helps traders identify potential market movements.

1. Continuation Patterns (The trend is likely to continue)

These patterns suggest that the price will continue moving in the same direction.

Pennant – A consolidation phase before the continuation of the trend.

Broadening Formation – Price movement expanding with higher highs and lower lows.

Bear Flag – A small upward retracement in a downtrend before continuing downwards.

Bull Flag – A small downward retracement in an uptrend before continuing upwards.

Channel – A price range that consistently moves within two parallel trend lines.

2. Neutral Patterns (Can break in either direction)

These patterns indicate uncertainty and require confirmation.

Symmetrical Triangle – A pattern where price converges, leading to a breakout in either direction.

Descending Triangle – Typically bearish but can break upward if there is strong buying pressure.

Ascending Triangle – Typically bullish but can break down under certain conditions.

3. Reversal Patterns (The trend is likely to change)

These patterns signal the end of a trend and the beginning of a new direction.

Diamond – A formation where price volatility increases before reversing.

Livermore Cylinder – A pattern indicating a possible breakout and reversal.

Double Top – Two equal highs suggesting strong resistance and a bearish reversal.

Double Bottom – Two equal lows indicating strong support and a bullish reversal.

Head and Shoulders – A bearish reversal pattern with three peaks, the middle being the highest.

Cup and Handle – A rounded bottom with a slight dip, often leading to a bullish breakout.

4. Special Patterns (Unique formations with strong signals)

Descending Wedge – A price range that narrows signaling a bullish breakout.

Ascending Wedge – A price range that narrows suggesting a bearish breakout.

Gartley – A harmonic pattern used in advanced trading strategies.

Cypher – A complex price formation used in harmonic trading.

Key Trading Tips (From the Chart)

✔ Wait for the opportunity – Avoid impulsive trading.

✔ Never trade out of FOMO/Panic – The fear of missing out leads to mistakes.

✔ Set stop-loss orders – Manage risk properly.

✔ Trade with affordable risk – Only risk what you can afford to lose.

✔ Use indicators and studies – Confirm patterns before trading.

Here is the image of the chart pattern 👇

If you find this post useful, please like, share, and comment, thank you ♥️

#VoteToListOnBinance #WhaleMovements #GameStopBitcoinReserve #FidelityStablecoin #BinanceAlphaAlert $FDUSD