10 chart patterns every trader needs to know Chart patterns are an integral aspect of technical analysis, but they require some getting used to before they can be used effectively. To help you get to grips with them, here are 10 chart patterns every trader needs to know. Source: Bloomberg A chart pattern is a shape within a price chart that helps to suggest what prices might do next, based on what they have done in the past. Chart patterns are the basis of technical analysis and require a trader to know exactly what they are looking at, as well as what they are looking for. Best chart patterns Head and shoulders Double top Double bottom Rounding bottom Cup and handle Wedges Pennant or flags Ascending triangle Descending triangle Symmetrical triangle There is no one 'best' chart pattern, because they are all used to highlight different trends in a huge variety of markets. Often, chart patterns are used in candlestick trading, which makes it slightly easier to see the previous ...
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