Hindustan Unilever Limited
Education

Premium Chart Patterns

41
Why Chart Patterns Work

Chart patterns work because they reflect real market behavior.

Key reasons:
✔ Human psychology repeats

People fear losses and chase gains. This creates repeatable price movements.

✔ Institutions accumulate or distribute slowly

Big players cannot buy or sell at once—they create patterns during accumulation/distribution.

✔ Liquidity zones

Patterns often form near liquidity pools where many stop-loss orders exist.

✔ Self-fulfilling nature

When many traders recognize the same pattern, they take similar trades, increasing accuracy.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.