I've noticed that many traders underestimate simple price patterns. Of course, indicators help, but often true skill in trading is the ability to read the market itself through its geometry.

Let's analyze three patterns that really work and help predict reversals and trend continuations.

The first is the double top and double bottom. These are reversal signals that are visible to the naked eye. When the price touches the same level twice and bounces, bulls or bears lose momentum. A double top usually precedes a decline, and a double bottom indicates growth. Such patterns in trading work because they show trend exhaustion.

The second is the head and shoulders. A classic reversal figure that forms after a strong upward movement. If you see this formation, the likelihood of a price decrease is quite high. It is one of the most reliable patterns for determining an exit point from a position.

The third is the flag and pennant. These patterns indicate not a reversal but a continuation. The price consolidates for a while and then continues moving in the direction of the main trend. For traders, this is a great opportunity to add a position after a small correction.

An important point is to always watch the volume. A pattern without confirming signals can be false. Volume should increase during a breakout of the level; otherwise, it could be a trap.

And how do you use patterns? Which ones work in your strategy? I’m interested in hearing from other traders' experiences.