Let's talk about what really works in technical analysis. I've noticed that many beginners are fixated on indicators, but the true key to understanding the market lies elsewhere — in price patterns. They actually reveal the market's true intentions better than any oscillators.

When I talk about patterns in trading, I don't mean just pretty formations on the chart. These are real signals that help predict reversals and trend continuations. Here's where I usually start my analysis.

Double tops and double bottoms are classics that can't be ignored. A double top forms when the price tests a resistance level twice and then pulls back. This signals that the bulls are losing strength. The opposite situation — a double bottom — shows that the bears are exhausted, and an upward movement may follow. I've seen serious reversals happen at these levels.

Head and shoulders is a pattern that has always impressed me with its reliability. When it forms after an uptrend, it almost always indicates that the price is preparing to decline. The pattern consists of three peaks: the left shoulder, the head (the highest point), and the right shoulder (lower than the head). This is a classic reversal pattern and works across all timeframes.

Flags and pennants are a completely different story. These are continuation patterns, not reversal ones. They show that after a strong move, the price pauses, consolidates, and then continues in the same direction. I often see them after sharp jumps — a good moment to enter a position.

But here’s what’s important to understand: when applying patterns in trading, you can't rely solely on the shape. I always look at volume — it should confirm the signal. If the pattern forms with declining volume, it's a weak signal. I seek additional confirmations: support and resistance levels, price behavior at key points.

If you're serious about trading, definitely include pattern analysis in your strategy. It doesn't guarantee 100% accuracy, but it significantly increases the likelihood of successful trades. I'm curious, which patterns work best in your practice? Share your observations.