There’s a difference between chart patterns and candlestick patterns. Chart patterns are not candlestick patterns and candlestick patterns are not chart patterns:
- Chart patterns are geometric shapes found in the price data that can help a trader understand the price action, as well make predictions about where the price is likely to go.
- Candlestick patterns, on the other hand, can involve only one single candlestick or a group of candlesticks which have formed one-after-the-other in regard to how they form in relation to one another in terms of their body length, opening and closing prices, wicks(or shadows) etc.
Not knowing what chart patterns are forming can be a costly mistake. If you are like that, this is your opportunity to get back on track.
Why costly mistake? Because you are completely unaware of what is forming on the charts and you end up taking a trade that is not in line with what the chart pattern is signalling or telling you!
These are the 9 chart patterns you will learn about today:
- Triangle chart patterns-symmetrical, ascending and descending (3 patterns)
- Head and shoulders and Inverse Head and Shoulders (2 patterns)
- Double Bottom and Double Top (2 patterns)
- Tripple Bottom and Tripple Top (2 patterns)