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17 Stock Chart Patterns All Traders Should Know Flag. Pennant. Head and Shoulders Top. Inverse Head and Shoulders. Rounding Bottom. Price Channel. Triple Top Reversal. Triple Bottom Reversal.

Research shows the most reliable and profitable chart patterns are the Head & Shoulders, with an 89% success rate, the Double Bottom (88%), and the Triple Bottom and Descending Triangle (87%). The most profitable chart pattern is the Rectangle Top, with a 51% average profit.

There are many types of charts that are used for technical analysis. However, the four types that are most common are?line chart, bar chart, point and figure chart and candlestick chart.

Best chart patterns Head and shoulders. Double top. Double bottom. Rounding bottom. Cup and handle. Wedges. Pennant or flags. Ascending triangle.

The two continuation patterns used most by day traders are the flag and the pennant. The pennant pattern is similar to a symmetrical triangle; the flag pattern is similar to a rectangle. These are powerful common trends. Once a trader grasps the understanding of these patterns, it may lead them to better results.

A chart formation is any pattern that forms on a trading data chart. These charts generally track prices at specific intervals, represented by points on the graph. The patterns can also appear on candlestick charts, but chart formations are different than candlestick patterns.

Published research shows best stock chart patterns are the inverse head and shoulders, double bottom, triple bottom, and descending triangle. Each has a proven success rate of over 85%, with an average gain of 43%.

How to read stock market charts patternsIdentify the chart: Identify the charts and look at the top where you will find a ticker designation or symbol which is a short alphabetic identifier of a company.Choose a time window:Note the summary key:Track the prices:Note the volume traded:Look at the moving averages:

How to read stock market charts patternsIdentify the chart: Identify the charts and look at the top where you will find a ticker designation or symbol which is a short alphabetic identifier of a company.Choose a time window:Note the summary key:Track the prices:Note the volume traded:Look at the moving averages:

A chart pattern or price pattern is a pattern within a chart when prices are graphed.When data is plotted there is usually a pattern which naturally occurs and repeats over a period. Chart patterns are used as either reversal or continuation signals.