Chart patterns provide clues about what buyers and sellers are doing:
Buyers create demand, pushing prices higher.
Sellers create supply, pushing prices lower.
When these forces interact, certain shapes form on the price chart. These shapes—like triangles, flags, head and shoulders, double tops—help traders forecast the next big move.
Patterns can be classified into two major types:
Reversal Patterns – indicate a possible change in trend.
Continuation Patterns – indicate the existing trend is likely to continue.
Understanding both helps traders catch major market moves with good accuracy.
Buyers create demand, pushing prices higher.
Sellers create supply, pushing prices lower.
When these forces interact, certain shapes form on the price chart. These shapes—like triangles, flags, head and shoulders, double tops—help traders forecast the next big move.
Patterns can be classified into two major types:
Reversal Patterns – indicate a possible change in trend.
Continuation Patterns – indicate the existing trend is likely to continue.
Understanding both helps traders catch major market moves with good accuracy.
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