Concept of Chart Patterns
Concept of Chart Patterns - The market values continuously keep changing. This change is due to some news, events or behavior/ sentiments of the traders which results in forming definite shapes or patterns of the Candle Stick. These patterns can be of various types & can be bullish or bearish in nature. Trades can be planned based on the knowledge and confirmations given by the patterns formed. Examples of patterns - Hammer, Shooting Star, Head-Shoulder, Double Top, Double Bottom, Cup-Handle, Pennant/Flags, Triangles, Rectangles, Wedges , etc. We can get better understanding of the market movements if we thoroughly know the pattern types , psychology behind the patterns and the pre-requisites for their formations which will be covered in designated blogs.