Master These Chart Patterns & Protect Your Capital Like a Pro
No indicators. No clutter. Just raw price action mastery.
If you want to read charts like a seasoned trader, these are the patterns you must know. Let’s break them down into three powerful categories:
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1. Reversal Patterns – When Trends Flip Direction
These signal that momentum is running out — and a major turn might be ahead:
Double Top: Two peaks signal strong resistance. Expect a move down.
Head & Shoulders: Three highs with a neckline base. Classic trend reversal.
Rising Wedge: Price tightens on the way up — often breaks downward.
Double Bottom: Two lows show support. Bullish bounce likely.
Inverse Head & Shoulders: Reversal setup that screams breakout potential.
Falling Wedge: Compression down? Often explodes upward.
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2. Continuation Patterns – When Trends Pause, Then Push On
These show a brief break in trend before it keeps moving in the same direction:
Falling Wedge (in uptrend): Temporary dip before bulls charge again.
Bullish Rectangle: Sideways chop before the next leg up.
Bullish Pennant: Tight coil after a spike — often leads to more upside.
Rising Wedge (in downtrend): Watch out! Often fakes higher before falling.
Bearish Rectangle: Sideways then… flush.
Bearish Pennant: Short pause before another leg down.
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3. Bilateral Patterns – Breakouts in Either Direction
These are neutral until they break — be ready either way:
Ascending Triangle: Flat top, rising lows. Pressure building.
Descending Triangle: Flat bottom, lower highs. Bears gaining ground.
Symmetrical Triangle: Squeeze setup — breakout coming, but which way?
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Trader Tips to Stay Ahead
Reversal = Trend exhaustion. Be ready to switch.
Continuation = Trend strength. Stay with the flow.
Bilateral = Uncertainty. Let the breakout show you the way.
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Want to level up your chart reading game? Study these patterns. Backtest them. Master them.
Drop “PATTERNS” if this helped you out — and follow for more real trading insights!
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