MASTER THESE CHART PATTERNS & LEVEL UP YOUR TRADING GAME
Want to stay ahead of the markets without relying on indicators? Then it's time to master pure price action. Chart patterns reveal market psychology — and the smart trader reads them like a roadmap.
Here are 3 types of chart patterns every trader MUST know:
🔄 REVERSAL PATTERNS – Spot the trend flips early:
• Double Top – Two peaks, one neckline. When price rejects again, a downward move is likely.
• Head & Shoulders – Three peaks, the middle one higher. Breakdown below the neckline often signals a bearish shift.
• Double Bottom – A “W” shape bounce from support. Signals bullish strength when neckline breaks.
• Inverse Head & Shoulders – A reversal from a downtrend. Once confirmed, strong upside potential.
📊 CONTINUATION PATTERNS – Momentum is just pausing:
• Bullish Pennant – A small triangle after a strong run-up. Look for breakout confirmation.
• Bullish Rectangle – Sideways consolidation before continuation. Volume breakout is key.
• Bearish Pennant – Quick pause before a potential move down. Confirm before entering short.
• Bearish Rectangle – Ranging within a downtrend. Breakdown suggests more downside.
🔀 BILATERAL PATTERNS – Breakouts can go either direction:
• Ascending Triangle – Horizontal resistance + higher lows. A breakout signals strength.
• Descending Triangle – Lower highs squeezing against support. Breakdown = weakness.
• Symmetrical Triangle – Lower highs and higher lows. Volume breakout determines direction.
PRO TIPS
• Reversal patterns = Trend exhaustion.
• Continuation patterns = Momentum reload.
• Bilateral patterns = Wait and watch for confirmation.
Study these like your P&L depends on it, because it does.
#CryptoCPIWatch #TradeLessons #TradeWarEases #BinanceAirdropNXPC #TradeStories