Chart Patterns

What Are Chart Patterns?

Chart patterns are formations created by price movements on candlestick charts. When price repeatedly reacts at certain levels—like bouncing from support or rejecting resistance—it creates geometric structures. These structures reflect a battle between buyers (bulls) and sellers (bears).

Patterns help answer key questions:

Is the trend continuing or reversing?

Where is the next breakout?

Who is in control—buyers or sellers?

Where can a trader enter with optimal risk–reward?

Patterns are broadly classified into:

Continuation Patterns

Reversal Patterns

Bilateral Patterns (can break either way)