Author, @MrJangKen

ID: 766881381

Now that you’ve got candlestick patterns and volume down, it’s time to unlock the power of chart patterns — shapes that can predict market moves before they happen! Ready to read the market like a pro? Let’s go!

📐 What Are Chart Patterns?

Chart patterns are visual shapes formed by price movement. They help traders predict:

đŸ”čWhether price will break up or down

đŸ”čWhen trends are likely to continue or reverse

Think of them like road signs on the price journey!

đŸ”ș Continuation Patterns (Price Likely to Keep Moving in Same Direction)

1. Symmetrical Triangle đŸ”ș

đŸ”čPrice squeezes into a tight range

đŸ”čBreakout can go up or down (watch volume!)

đŸ”čSignal: Big move coming!

2. Bull Flag đŸš©

đŸ”čSharp rise → small pullback → breakout upward

đŸ”čLike a flag on a pole — shows bullish continuation

3. Bear Flag 🏮

đŸ”čSharp drop → small upward pullback → breakdown

đŸ”čSame as bull flag but in reverse

🔄 Reversal Patterns (Price Likely to Change Direction)

1. Head & Shoulders

đŸ”čThree peaks: tall middle (head), smaller sides (shoulders)

đŸ”čSignal: Trend reversal from up to down đŸ»

2. Inverse Head & Shoulders

đŸ”čFlipped version of above

đŸ”čSignal: Reversal from down to up 🐂

3. Double Top ⛰⛰

đŸ”čTwo peaks at the same level

đŸ”čSignal: Bearish reversal

4. Double Bottom ⛳⛳

đŸ”čTwo dips at same price

đŸ”čSignal: Bullish reversal

đŸ§© How to Use Chart Patterns Effectively

đŸ”čCombine with volume (Part 3): Breakouts with high volume = stronger signals

đŸ”čConfirm with candlestick patterns (Part 2)

đŸ”čWatch for support/resistance at breakout zones (Part 1)

✅ Pro Tips

đŸ”čDon’t rush — patterns take time to form

đŸ”čSet alerts at breakout points

đŸ”čUse patterns with risk management — always set stop-loss!

🚀 Final Thoughts

Chart patterns are like treasure maps for traders. When used with volume and candlesticks, they become powerful tools to catch early moves and avoid traps.

Up next in Part 5: We’ll dive into Risk Management & Trade Psychology — the ultimate tools to protect your capital!

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