Chart Patterns

Technical analysis often involves identifying patterns in market data to make informed trading decisions. Some common patterns used in technical analysis include:

• Head and Shoulders: a reversal pattern that signals the end of an uptrend and the start of a downtrend.
• Double Tops and Bottoms: reversal patterns that signal a change in the direction of a trend.
• Triangle patterns: continuation patterns that signal a consolidation period before the price resumes its previous trend.
• Flag and Pennant patterns: continuation patterns that signal a consolidation period before the price resumes its previous trend.
• Gap: a price movement in which the low of one day is higher than the high of the previous day, or the high of one day is lower than the low of the previous day.
• Wedges: either bullish or bearish continuation patterns, depending on the direction of the slope.
• Cup and Handle: a bullish reversal pattern that signals the end of a downtrend and the start of an uptrend.