Chart patterns and harmonic structures for identifying trading opportunities.
Overview
Patterns provide visual frameworks for:
- Reversal points: Where trends change direction
- Continuation: Where trends pause then resume
- Breakouts: Where price escapes consolidation
- Targets: Where moves might end
Pattern Categories
| Category | Patterns | Timeframe |
|---|
| Candlestick | Doji, Engulfing, Hammer | Short-term |
| Chart Patterns | Head & Shoulders, Triangles | Medium-term |
| Harmonic | Gartley, Bat, Butterfly | Long-term |
How To Use
- Identify the pattern on chart
- Measure the pattern's dimensions
- Validate with volume/confluence
- Enter at confirmation point
- Target measured move
- Stop at pattern invalidation
Pattern Reliability
| Pattern | Win Rate | Best For |
|---|
| Head & Shoulders | 70-80% | Reversals |
| Double Top/Bottom | 65-75% | Reversals |
| Triangles | 60-70% | Breakouts |
| Flags/Pennants | 75-85% | Continuation |
| Harmonic | 60-70% | Precision |
Quick Reference
| Pattern | Type | Key Feature |
|---|
| Candlestick | Reversal | Single/multiple candles |
| Chart Patterns | Both | Price structure |
| Harmonic | Reversal | Fibonacci ratios |