Rules for Trading Chart Patterns
Wait for confirmation
Don’t assume a breakout. Always wait for a close beyond the breakout level.
Use volume confirmation
High volume strengthens signals.
Trade only strong patterns
Avoid weak, uneven, unclear structures.
Always check market trend
Pattern reliability increases in the direction of trend.
Use stop-loss
Set SL below support (bullish) or above resistance (bearish).
Measure target using pattern height
Many patterns provide measurable targets.
Combine with indicators
RSI, EMA, MACD improve accuracy.
Wait for confirmation
Don’t assume a breakout. Always wait for a close beyond the breakout level.
Use volume confirmation
High volume strengthens signals.
Trade only strong patterns
Avoid weak, uneven, unclear structures.
Always check market trend
Pattern reliability increases in the direction of trend.
Use stop-loss
Set SL below support (bullish) or above resistance (bearish).
Measure target using pattern height
Many patterns provide measurable targets.
Combine with indicators
RSI, EMA, MACD improve accuracy.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.