Chart Patterns

Chart patterns are perhaps what most people think of when they think of technical analysis.

The shapes that charts make can give us big clues as to what a market is likely to do next. We can either use that information to support other trading decisions or we can trade the patterns themselves.

Chart patterns fall into two groups, continuation patterns and reversal patterns. The major continuation patterns are explored more thoroughly in some of the other tutorials on the website as they are setups with the ‘dominant trend’ i.e. the direction we always want to trade in given a choice.

Check out the video below for further explanation.

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