What are chart patterns?

Posted by

Chart patterns are a formation of candlesticks which produce patterns that have a highly probable outcome which is ideal to trade. Trading chart patterns that are more likely to produce outcomes that are in your favour will produce consistent profits over time and is key when trading. Some of the most popular patterns include the head and shoulders patternpennants and Gartley patterns. Chart patterns are produced on all time frames but patterns on higher time frames are trustworthy due to being less volatile. There are many ways to trade chart patterns but the two main ways are to trade the range of the pattern or to trade the breakout of a pattern, each can be profitable but which is best depends on your trading plan.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s