You know, I’ve noticed that the price pattern is one of the most powerful tools in technical analysis. The essence is that prices on the chart form repeating patterns that produce similar results again and again. This has been proven over time, with analysts confirming the reliability of this approach for years. And when such a price pattern forms, it becomes a signal to enter or exit a trade.

Why does this work? Because we are essentially studying the behavior of the crowd of traders. History repeats itself, and people react to price movements in roughly the same way. That’s why price patterns help predict where the price will go, identify trends or reversals, and even suggest target prices.

All of this is based on the principle that history repeats itself — this is the foundation of technical analysis. And this pattern exists everywhere in our lives, not just in markets.

Now about the types. There are continuation patterns — they indicate that the price will move in the same direction. And there are reversal patterns — they show that the price will turn in the opposite direction.

The most well-known price patterns I use are:

Head and Shoulders — this is a reversal pattern. It looks like a short peak (shoulder), then a higher peak (head), then another short peak (shoulder). If you draw a line through the two lows, it becomes the neckline. When the price breaks through this line, it’s a reliable reversal signal. I open a position below the neckline to catch the decline. There’s also an inverted version — then you open above the neckline.

Double Top — the price reaches the same level twice and then reverses downward.

Double Bottom — the opposite, the price touches a low level twice and then moves upward.

Triple Top and Triple Bottom — the same, but with three touches.

These are the price patterns I observe on different timeframes. They really work if you know how to read them correctly. I hope this helps you understand the basics.