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Stock Market Tips Guide

CHART PATTERNS   

A chart pattern is a distinct formation on a stock chart that creates a trading signal, or a sign of future price movements.  

Chartists use these patterns to identify current trends and trend reversals, and to trigger buy and sell signals.  

There are two types of patterns within this area of technical analysis - reversal and continuation.  

A reversal pattern signals that a prior trend will reverse upon completion of the pattern.  

A continuation pattern, on the other hand, signals that a trend will continue once the pattern is complete.  

These patterns can be found in charts  for any time frame

 

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