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
