I have been doing technical analysis for several years and have noticed that most successful traders rely on the same thing — recurring price patterns on the chart. This is not a coincidence but a result of the crowd’s behavior following certain regularities.

The essence is that the price model is not just a pretty figure on a candlestick chart. It reflects the collective psychology of the market. When you see a familiar pattern, you understand that history tends to repeat itself. That’s why these models have been working for decades across different markets worldwide.

The main division is simple. There are continuation models — they indicate that the price will move further in the same direction. And there are reversal models — they signal a trend change, that the price will turn in the opposite direction. Knowing the difference between them, you are already halfway to understanding what might happen next.

Among the most famous is, of course, the head and shoulders. This is a classic reversal pattern that I see again and again. It forms like this: first, a small peak (shoulder), then a higher peak (head), then another low peak (second shoulder). Connecting the two lows creates a neckline. When the price breaks through this line, it’s a signal of a reversal. I’ve caught many good moves by entering exactly on the breakout of this line.

There is also an inverted version — the inverted head and shoulders. The logic is the same, only the pattern is upside down. Instead of a reversal downward, it signals a reversal upward.

Then there are double and triple tops, as well as double and triple bottoms. They work on a similar principle — the price cannot break through a certain level twice or thrice, and then a reversal occurs. Simple and effective.

The whole trick is that these price models help determine not only the direction of movement but also an approximate target price. When you see a familiar pattern, you already know roughly where the price is headed. This gives a huge advantage when planning entries and exits.

Honestly, a technical model is just a way to read the language of the market. History repeats itself not because of magic but because people remain people. Fear and greed work the same in 2000 and in 2026. That’s why these principles remain relevant.