Honestly, I’ve been thinking for a long time about why some traders constantly catch reversals, while others are always late. Then I realized – it all comes down to patterns. Not indicators, but how the price itself draws the story on the chart.

Trading patterns are not some kind of magic; they are simply recurring formations that the market draws over and over again. Let’s start with the most obvious: double top and double bottom. I’ve seen it a thousand times – the price approaches a certain level, bounces back, then goes there again, and then either falls or rises. A double top usually precedes a decline because the bulls can no longer push higher. A double bottom, on the other hand, is often a signal for recovery.

There’s also the head and shoulders – a classic reversal pattern. If it forms at the end of an uptrend, it’s a serious sign that the price may turn down. I’ve seen people catch good shorts on this pattern.

And of course, flags and pennants. These are continuation patterns – the price consolidates, then breaks out further in the same direction. Often, this provides a good entry point for adding to a position.

But here’s the point: trading patterns only work if you look at the volume and catch confirming signals. Without that – they’re just pretty drawings on the chart. I’ve noticed that when volume is weak, a pattern might simply not work. That’s why I always wait for confirmation before entering.

Does anyone else use these figures in their trading? I’m curious which patterns you find the most reliable.