Understanding and using chart patterns for technical analysis can hugely increase your probability of entering and exiting at the right time. The examples below show some of the most common types of patterns and where your entry and exit points should likely be. Patterns can be used to analyze everything from intraday to long term charts.
Reversal stock patterns
These patterns generally represent a failed move higher or lower before a reversal in direction.
Continuation stock patterns
These patterns generally represent a period of consolidation before a continued move higher or lower.
Bilateral stock patterns
These patterns generally represent a period of consolidation before a move in either direction. You may not have a clear idea of where the stock is headed until you see which side of the pattern it breaks from. Notice the entry points are just above and just below the pattern guidelines.
these charts are courtesy of babypips.com
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