
Chart Patterns
Why Are Chart Patterns Important? The forces of supply and demand drive prices in the financial market. Who is winning—the sellers or the buyers? In order to determine whether a market is heading upward, downward, or sideways, chart patterns offer a visual depiction of the conflict between buyers and sellers. You can make better buying and selling judgments if you are aware of this. Numerous chart designs are available. The majority fall into one of two general categories: continuation patterns or reversal patterns. While continuation patterns suggest the price trend will continue following a brief consolidation, reversal patterns indicate a change in the trend. In the StockCharts platform, you can scan for various chart patterns in the Predefined Scans available in the…