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 patternsTrend reversal patternsdouble top double bottom triple top bump and run rounding top head and shoulders top pattern Trend continuation patterns 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 other patterns dead cat bounce HAPPY TRADING! Remember to develop a strict system before trading and always use proper money management.
 
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