⚡Bullish vs Bearish: How to Spot the Trend with Chart Patterns
Chart patterns help traders recognize where the market might be heading. Knowing the difference between bullish and bearish patterns is key to successful trend trading.
💹Bullish Patterns:
Bull Flag – Price consolidates in a downward channel after a strong uptrend, then breaks out upward.
Cup and Handle – A rounded bottom followed by a slight pullback (handle), then a breakout to the upside.
📉Bearish Patterns:
Rising Wedge – Price moves upward but the range tightens; a bearish reversal is likely.
Head and Shoulders – A peak (shoulder), higher peak (head), and a lower peak (shoulder) indicating a downtrend reversal.
✖️Mistakes to Avoid When Using Chart Patterns
Chart patterns can be powerful, but only when used correctly. Many traders make these common errors:
Trading before confirmation – Entering too early can lead to false breakouts. Wait for the breakout or breakdown with volume.
Ignoring volume – Volume confirms the strength of a move. Low volume breakouts are often unreliable.
Using patterns alone – Always combine with indicators like RSI or MACD and watch overall market sentiment.
👉🏼👉🏼“Patterns don’t guarantee profits—your strategy does.”