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Real Knowledge of Chart Patterns

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CHART PATTERNS (Market Structure Patterns)

Chart patterns are formed by price movements over a longer period and help traders understand the bigger picture. They indicate whether the trend is likely to continue, reverse, or break out after consolidation. These patterns can be grouped into three major categories:

1. Continuation Patterns

These suggest that the existing trend (uptrend or downtrend) will likely continue after a temporary pause.

2. Reversal Patterns

These indicate a possible change in trend direction.

3. Bilateral Patterns

These can break either up or down, signaling indecision.

Let’s study them in detail.

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