16 COMMON PRICE PATTERNS
The price pattern group helps traders identify the recurring behavior of the market through the structure of peaks – troughs – price slope.
The patterns are divided into:
- Reversal patterns (indicating that the old trend is weakening and has the potential to change direction)
- Continuation patterns (showing that the market is just accumulating before continuing in the main trend).
Understanding how to draw, the appearance location, and the trend context of each pattern helps traders enter positions at the right time, increasing the probability of winning and reducing emotional trading.
📌Important reminders:
- A pattern is only strong when it is at an important price level
- Always wait for a break + retest + confirmation candle
- Do not trade patterns that are in the middle of the chart
🧠QUICK IDENTIFICATION TIPS
Horizontal peak + rising trough → Bullish
Horizontal trough + declining peak → Bearish
Two converging sides → Wedge / Pennant
Parallel → Flag / Channel
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