Learn to predict market moves like a pro 📊
If you're serious about trading, understanding chart patterns is a must. They help you spot key signals for trend reversals, continuations, or breakouts. Here's a quick guide to the three essential pattern types every trader must know:
🔁 Reversal Patterns – Signal a trend change:
1️⃣ Double Top – Two peaks at resistance, then breakdown (bearish)
2️⃣ Head & Shoulders – Three peaks, neckline break = reversal (bearish)
3️⃣ Rising Wedge – Tightening upward move, likely breakdown (bearish)
4️⃣ Double Bottom – Two lows at support, breakout higher (bullish)
5️⃣ Inverse H&S – Reversal pattern with three troughs, breakout (bullish)
6️⃣ Falling Wedge – Narrow downward move, then breakout (bullish)
⏩ Continuation Patterns – Confirm current trend:
1️⃣ Falling Wedge – Bullish continuation after pullback
2️⃣ Bullish Rectangle – Sideways consolidation, upward breakout
3️⃣ Bullish Pennant – Small triangle after a surge, then breakout
4️⃣ Rising Wedge – Bearish continuation with narrowing range
5️⃣ Bearish Rectangle – Horizontal range, downward breakout
6️⃣ Bearish Pennant – Downtrend pause, then drop continues
⚖️ Bilateral Patterns – Breakout in either direction:
1️⃣ Ascending Triangle – Flat resistance, higher lows = breakout likely
2️⃣ Descending Triangle – Flat support, lower highs = high tension
3️⃣ Symmetrical Triangle – Equal pressure both sides = big move coming
Top Takeaways for Traders:
✅ Reversals = Trend shift
✅ Continuations = Trend strength
✅ Bilateral = Be ready for either outcome
Master these patterns to set smarter entry/exit points, stop-losses, and targets.
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