Courses / Chart Patterns Masterclass

What Are Chart Patterns?

Why price forms repeating shapes and how to use them without overtrading.

Chart patterns are shapes formed by price swings over many candles. They reflect the balance between buyers and sellers and are grouped into reversal patterns (the trend may change) and continuation patterns (the trend may resume).

A pattern is only complete when price breaks out of it. Until then, it is a possibility, not a signal. Many apparent patterns never finish, so patience matters.

Always measure the same four things: the trend before the pattern, the pattern boundaries, the breakout, and the volume or momentum behind the breakout.

Key takeaways

• Reversal patterns vs continuation patterns
• A pattern is complete only after the breakout
• Check prior trend, boundaries, breakout and momentum

Quiz

• A pattern is confirmed when: Answer: Price breaks out of it. Confirmation is the breakout.
• Continuation patterns suggest: Answer: The trend may resume. They often precede a continuation.
• What should you measure first? Answer: The prior trend. Context starts with the prior trend.

Educational content, not financial advice.