MASTER THESE CHART PATTERNS AND AVOID LOSSES FOREVER! 📉📈
Understanding chart patterns is key to predicting price movements in trading. Here is a breakdown of the three main types: Reversal, Continuation, and Bilateral Patterns.
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🔄 Reversal Patterns – Signal of a Trend Change
These indicate that the current trend may change direction.
1. Double Top – Bearish pattern with two peaks at resistance, then the price falls. 🔻
2. Head and Shoulders – Three peaks, breaking below the neckline signals reversal. ⚠️
3. Rising Wedge – The price moves upward within a narrowing range, then breaks down. 📉
4. Double Bottom – Bullish pattern with two lows at support, then breaks upward. 🔼
5. Inverse Head and Shoulders – Three valleys with a break above the neckline. 🟢
6. Falling Wedge – The price adjusts downward before breaking upward. 🚀
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📊 Continuation Patterns – The trend is likely to continue
These show that the current trend is on pause before resuming.
1. Falling Wedge – Consolidation downward, then breaks upward. 📈
2. Bullish Rectangle – Lateral movement before a bullish break. ➡️🔼
3. Bullish Pennant – Small triangle after a bullish trend, then continues upward. ⏫
4. Rising Wedge – Consolidation upward, then a bearish continuation. ⬇️
5. Bearish Rectangle – Range movement before a drop. ➡️🔻
6. Bearish Pennant – Triangle after a downtrend, continuing downward. ⏬
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