What are Chart Patterns?

Chart Patterns are patterns that occur in a stock. These patterns all use support and resistance. Using and identifying patterns can assist you in determining when to get into a trade and when to get out of a trade, your entrance and exit points.

There are trend reversal patterns like the Triple Bottom or the head_and_shoulders that let you get in the stock at the bottom or the top. There are also trend continuation patterns like the bull flag and the ascending triangle. These patterns are meant to help you determine when to get into and out of trades. These are all considered to be a part of technical analysis and should be used along with other indicators such as the MACD or Stocastics.

These patterns can be extremely helpful indicators. Studing them can help you see the market in new ways. Bellow I have listed a few common Patterns that appear often in the stock market.

Other Chart patterns

Trend reversal patterns

double top
double bottom
triple top
bump and run
rounding top
head and shoulders top pattern
tiple bottom

Trend continuation patterns

Wolf Wave

bullish rectangle pattern
bearish rectangle pattern
bearish wedge
cup and handle
bear flag
descending triangle
bullish pennant
base on base pattern
Bullish symmetrical triangle
bearish symmetrical triangle
flat base
bearish pennant

other patterns

dead cat bounce
Overhead supply

HAPPY TRADING!

Remember to develop a strict system before trading and always use proper money management.

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