Chart Patterns

Chart patterns are the price formations that regularly appear on a financial chart. These formations are created by the repeated price action and are the foundation of the technical analysis. Traders use these price formations to predict the future price movement of a financial asset. These patterns are mainly classified into reversal and continuation patterns. A continuation pattern is a pattern that indicates the continuity of an ongoing trend after a brief sideways period or a move in the opposite direction. As the name implies, the reversal patterns indicate a possible change in direction of an ongoing trend. These patterns provide an excellent opportunity to identify the trend direction and plan the entry and exit levels.

Advantages of Trading Using Chart Pattern

The chart patterns provide a competitive advantage to the traders as they help to predetermine the continuation or the reversal of an ongoing trend. Using these patterns will increase the value of your future technical analyses. They can form on any timeframe and you can use them for swing trading, day trading, or even scalping. The chart patterns not only indicate a reversal or continuation of a trend but also indicate the entry and exit levels. As a trader, the most important responsibility you have is to manage the risk and by using the chart patterns you can calculate the potential reward and risk which is important to know before entering a trade. The patterns are equally useful for trading any financial market including stocks, Forex, commodities, bonds, etc.

What You Will Learn in This Course?

These chart patterns can sometimes be quite difficult to identify on trading charts when you are a beginner and even when you are a professional trader. That is why we have put together this comprehensive course on this subject. In this course, we will go through all well-known bullish and bearish as well as continuation patterns. We will discuss how those chart patterns are formed and how you can identify them. You will also learn the logic behind these patterns with examples from the historical chart. Finally, you will also learn to trade using these patterns and be able to find entry and exit levels.