If you are learning trading, these "chart patterns" can help you make smart decisions.
Let's understand in simple language when these patterns form and what they mean. 👇
🔹 Cup and Handle
This pattern forms when the market first goes down, then gently rises and creates a cup-like curve. After that, it moves slightly downwards (which means a handle forms).
👉 Forward signal: The market can go strong upwards – this is a bullish signal.
🔹 Rounding Bottom
This pattern forms when the market gradually goes down and then slowly starts to rise.
👉 Forward signal: The market can go up for a long time.
🔹 Diamond Top
This pattern forms when the price fluctuates a lot and the shape of the candles looks like a diamond.
👉 Forward signal: The market can fall down – this is a bearish signal.
🔹 Diamond Bottom
This pattern is similar to a diamond top, but it forms on the downside.
👉 Forward signal: The market has a strong chance of going up.
🎯 When do these patterns form?
✅ When a big reversal is about to happen in the market
✅ When support and resistance lines are clearly visible
✅ When volume is also confirming the pattern