Arsal404

This chart categorizes patterns into four groups: Continuation, Neutral, Reversal, and Special. Each pattern helps traders identify potential market movements.

1. Continuation Patterns (Trend is likely to continue)

These patterns suggest that the price will keep moving in the same direction.

Pennant – A consolidation phase before a trend continuation.

Megaphone – Price movement widening with higher highs and lower lows.
Bearish Flag – A small upward retracement in a downtrend before continuing lower.
Bullish Flag – A small downward retracement in an uptrend before continuing higher.
Channel – A price range moving consistently within two parallel trendlines.

2. Neutral Patterns (Can break in either direction)

These patterns indicate uncertainty and require confirmation.

Symmetrical Triangle – A pattern where price converges, leading to a breakout in either direction.
Descending Triangle – Typically bearish but can break upwards if strong buying pressure exists.
Ascending Triangle – Typically bullish but can break downward in certain conditions.

3. Reversal Patterns (Trend is likely to change)

These patterns signal the end of a trend and the start of a new direction.

Diamond – A formation where price volatility increases before reversing.
Livermore Cylinder – A pattern indicating a potential breakout and reversal.
Double Top – Two equal highs suggesting strong resistance and a bearish reversal.
Double Bottom – Two equal lows signaling strong support and a bullish reversal.
Head & Shoulders – A bearish reversal pattern with three peaks, the middle being the highest.
Cup & Handle – A rounded bottom with a smaller dip, often leading to a bullish breakout.

4. Special Patterns (Unique formations with strong signals)

Falling Wedge – A narrowing price range signaling a bullish breakout.
Rising Wedge – A narrowing price range suggesting a bearish breakdown.
Gartley – A harmonic pattern used in advanced trading strategies.
Cypher – A complex price formation used in harmonic trading.

Key Trading Tips (From the Chart)

✔ Wait for opportunity – Avoid impulsive trades.

✔ Never FOMO/Panic trade – Fear of missing out leads to mistakes.

✔ Set stop-loss orders – Manage risk properly.

✔ Trade with affordable risk – Only risk what you can afford to lose.

✔ Use indicators & studies – Confirm patterns before trading.
Here is the chart pattern image 👇
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