CHART PATTERNS

Chart patterns are visual shapes formed by price movements on a chart. These patterns occur repeatedly across markets and timeframes because human psychology doesn’t change. Fear, greed, panic, and hope create predictable structures.

Chart patterns fall into three categories:

1. Reversal Patterns

2. Continuation Patterns

3. Bilateral Patterns

Understanding Chart Patterns with Market Psychology

Every chart pattern reflects the psychological war between buyers and sellers.

Higher highs & higher lows: Buyers strong

Lower highs & lower lows: Sellers strong

Flat areas: Indecision

Breakouts: One side finally wins