5 Chart Patterns Every Trader MUST Know
Mastering these classic setups can level up your trading game. Here's a simple breakdown of each one 👇 1/ Head and Shoulders 🧠👕 A bearish reversal pattern. ✅ Left shoulder → Head → Right shoulder 🚩 Signals a potential top and trend reversal. 🧠 Watch for a break below the neckline. 2/ Double Top ⛰️⛰️ Another bearish reversal. ✅ Price hits the same resistance twice ⚠️ Fails to break out = weakness 🔻 Often leads to a trend reversal downward. 3/ Double Bottom 🕳️🕳️ Bullish reversal pattern. ✅ Two strong rejections at the same support level 🚀 Indicates accumulation and a potential move up. 🔑 Confirm with breakout above neckline. 4/ Ascending Triangle 🔼 Bullish continuation pattern. ✅ Higher lows squeezing into horizontal resistance 💥 Breakout usually leads to strong upside move. 📊 Volume often contracts before breakout. 5/ Descending Triangle 🔽 Bearish continuation pattern. ✅ Lower highs pressing into horizontal support ⚠️ Builds pressure before a breakdo...