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General TradingC

Chart Pattern

A chart pattern is a recognizable formation created by price movements on a financial chart, used by technical analysts to predict future price direction. Common patterns include head and shoulders, double tops/bottoms, triangles, and flags, each suggesting either continuation or reversal of the current trend. Identifying chart patterns is a foundational skill in technical analysis, as they often provide reliable entry and exit signals with defined risk levels.

Example

A textbook head and shoulders chart pattern formed on the daily timeframe, giving traders a clear short entry with a measured move target.