Premium Chart AnalysisHow to Trade Chart Patterns
To effectively trade chart patterns, follow these steps:
Identify the Pattern Early
Use clear trendlines to mark support and resistance zones.
Confirm shape and symmetry before assuming a pattern.
Wait for Breakout Confirmation
A breakout should be supported by volume expansion—this validates the move.
Avoid acting before confirmation; false breakouts are common.
Set Entry and Exit Points
Enter after a confirmed breakout (preferably with candle close beyond resistance/support).
Target = Height of pattern projected from breakout point.
Stop-loss = Just below (for bullish) or above (for bearish) the breakout level.
Use Multiple Timeframe Analysis
Confirm pattern on higher timeframes to avoid false signals.
Align short-term setups with long-term trends for stronger conviction.
