What are Patterns

And how to find them

Welcome to the most popular part of this guide. Traders love learning patterns. And there is a reason.

Patterns in trading are those shapes and price moves you see again and again on your charts. They’re like footprints that price action leaves behind. When you spot them, you get clues about what might happen next-like a heads-up for possible breakouts or reversals.

Identifying them takes some chart-watching skills:

1. Zoom out a bit. You want to see the overall price flow, not just random candles.

2. Use support and resistance lines. Patterns often form near these levels.

3. Look for familiar shapes: triangles, rectangles, heads-and-shoulders, double tops, whatever stands out. I will tell you about 20 of those shapes soon. This will be more than enough for you.

4. Stay flexible. Remember that patterns aren’t guaranteed; they’re hints. You still need to watch volume, momentum, and other signals.

⚠️ It is important to understand that if you see a pattern, it does not guarantee that the market will behave exactly as the pattern predicts! But often it does, so it helps a lot.

It is also important to consider patterns not as an isolated technical analysis tool, but in conjunction with other tools and the market context.

Ok. I said what I had to. I hope you got me.

Next, we’ll explore 20 patterns. By the end, you’ll know what they look like and how to use them in your own trades.