We’ve listed the basic classic chart patterns when they are formed, the type of signal they give, and the next likely price move.
Check it out!
|CHART PATTERN||FORMS DURING||TYPE OF SIGNAL||NEXT MOVE|
|Head and Shoulders||Uptrend||Reversal||Down|
|Inverse Head and Shoulders||Downtrend||Reversal||Up|
Add a Bookmark
You also might want to add this page to your bookmarks in case you need to double-check those chart patterns’ signals before you risk your hard-earned cash on a trade.
You never know when you’re gonna need to cheat, hah! Bookmark this thing yo!
And as you probably noticed, we didn’t include the triangle formations (symmetrical, ascending, and descending) in this cheat sheet.
That’s because these chart patterns can form either in an uptrend or downtrend and can signal either a trend continuation or reversal.
Confusing, I know, but that’s where practice and experience come in!
As we mentioned, it’s tough to tell where the price will break out or reverse.
So what’s important is that you prepare well and have your entry/exit orders ready so that you can be part of the action either way!