If you are serious about trading, you've probably heard of price patterns. This is the foundation of all classic technical analysis. The essence is simple — price on the chart moves according to certain patterns that repeat again and again. History, in this sense, really tends to repeat itself.

I’ve noticed that many beginners underestimate the importance of these patterns. And rightly so — they have been tested through years of practice across all global markets and work quite reliably. With their help, you can predict where the price will go, identify trend reversals, and determine target levels for entering and exiting positions.

All price patterns are divided into two main categories. The first are continuation patterns. They signal that the price will continue moving in the same direction it was previously. The second are reversal patterns. They indicate that the trend will break and the price will move in the opposite direction. And that’s where the most interesting part begins.

Among the most well-known patterns, I would highlight Head and Shoulders. This is a classic reversal price pattern. It forms quite recognizably: a short peak, then a higher peak in the center, then another short peak. If you draw a line through the two low points — that’s the neckline. When the price breaks through this line, it’s a reliable signal of a reversal. There is also an inverse version — Inverted Head and Shoulders, which works exactly the same but in the opposite direction.

Next come double tops and double bottoms. Triple tops and triple bottoms are less common but also provide clear signals. Each of these price patterns has its own features, but the principle is the same — if you see a familiar pattern that has already triggered hundreds of times in history, there’s a high probability it will work this time too.

Of course, price patterns are not a panacea. But if you combine them with other analysis tools, you get a powerful instrument for making decisions in the market. It’s worth spending time studying these patterns if you want to trade more consciously.