Chart Patterns Made SimpleâTrade Smarter & Avoid LossesđĄđ
### đ„ **1. Bullish PatternsâPrice May Go Up**
These patterns appear after prices drop and show signs of rising again:
- **Inverted Head & Shoulders** â A strong sign of price reversal.
- **Double Bottom (W)** â Price bounces twice off a support level, signaling strength.
- **Bullish Flag** â A brief pause in an uptrend before prices continue higher.
- **Triple Bottom** â Sellers fail to push the price lower multiple times, meaning buyers are stepping in.
- **Cup & Handle** â A rounded base followed by a small dip, often leading to a breakout.
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### âïž **2. Neutral PatternsâPrice Could Go Up or Down**
These patterns show market uncertainty. Wait for confirmation before trading:
- **Symmetrical Triangle** â Price is narrowing and could break in either direction.
- **Falling/Rising Wedge** â The price moves inside a tightening range, often leading to a breakout.
- **Ascending/Descending Triangle** â The price is testing a level repeatedlyâwatch for a breakout.
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### đ **3. Bearish PatternsâPrice May Fall**
These patterns signal danger for buyersâtime to exit or short the market:
- **Head & Shoulders** â A classic pattern that shows a trend is about to reverse downward.
- **Double Top (M)** â Price tries to rise twice but failsâexpect a drop.
- **Triple Top** â The price struggles to break resistance three times, signaling weakness.
- **Bearish Flag** â A brief pause in a strong downward trend before prices continue falling.
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### đ§ **Quick Trading Tips:**
â **Bullish = Buy or hold** if the trend is continuing up.
â **Bearish = Sell or short** if the market looks weak.
â ïž **Neutral = Wait** for a clear breakout before acting.
đŻ **Recognize the pattern. Trust your analysis. Trade with confidence!**
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