Concept of Chart Patterns

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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.

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