I wrote down the basic patterns everyone needs to understand and observe in everyday basis.


Patterns you see in an uptrend
1) Bull flags ( Usually bullish continuation )
2) Falling wedges ( Usually bullish continuation )
3) Symmetrical triangles ( not very bullish, shows indecision and possibly lack of momentum )
4) Double top ( Bearish unless a higher high is made with retest above the double top )
5) Head and shoulders ( Bearish unless a higher high is made at least above the first shoulder )
6) Rising wedge ( Bearish unless it breaks to the upside with extreme volume )
Patterns you see in a downtrend
1) Double bottom ( bullish with momentum building to the upside )
2) Inverse head and shoulders ( My favourite for trend reversals , AKA great opportunity with minimal risk )
3) Falling wedge OR Descending channels with volume decreasing ( Yes after a downtrend, falling wedges tend to be bullish as they indicate lack of selling pressure )
4) Rising wedges ( Bearish unless they break to the upside with extreme volume )
5) Symmetrical triangles ( Can be both but usually they show that buyers and sellers are even in power )
6) Bear flags ( Same dynamics with the rising wedge, likely trend continuation;lower )
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