Chart Patterns

Chart patterns are visual formations on price charts used in technical analysis to predict future market movements based on historical price behavior. These patterns, such as head and shoulders, double tops and bottoms, flags, and triangles, help traders identify potential trend reversals or continuations. For investors, understanding chart patterns can aid in timing entry and exit points and assessing market sentiment. However, they should be used alongside other indicators and fundamental analysis to improve accuracy, as no pattern guarantees outcomes. Key considerations include market context, volume confirmation, and avoiding over-reliance on patterns without corroborating data or a solid risk management strategy.