A chart pattern is a visual formation or shape within a price chart that provides clues to what prices might do next.
In technical analysis, chart patterns are used to find trends in the movement of an asset’s price.
Chart patterns put all buying and selling into perspective by consolidating the forces of supply and demand into a concise picture.
They provide a framework to analyze the battle between bulls and bears and can help determine who is winning, allowing traders to position themselves accordingly.
Here is a reference guide for the common classic chart patterns.
Click on a chart pattern below to learn more about that pattern.