How to Use chart patterns in technical analysis ?Setting Entry and Exit Points: Chart patterns enable day traders to set precise entry and exit points. For example, a trader might enter a long position when the price breaks above the upper trendline of a symmetrical triangle and set a stop-loss order below the pattern's lower trendline.
The 123 pattern reversal strategy is a three-swing price formation indicating a potential trend reversal. It consists of three price swings with three swing points, suggesting a change in market direction.
