Top 10 Chart Patterns you should know when Trading in the Stock Market

• Chart patterns put all buying and selling that’s happening in the stock market into a concise picture.
• Chart patterns tend to repeat themselves over and over again which helps to appeal to human psychology and trader psychology in particular.
• If you are able to learn to recognize these patterns early they will help you to gain a real competitive advantage in the markets.
• Chart patterns can be continuation, reversal or bilateral pattern.
• Chart patterns provide a complete pictorial record of all trading, and also provides a framework for analyzing the battle between bulls and bears.Chart patterns play a crucial role when analyzing the charts for trading.

  In technical analysis, the transitions in the trends are signaled by these charts patterns.

  By learning about these chart patterns, you will be able to learn how to profit from these technical price patterns.

• Why is it Important to analyze the Chart Patterns?

  Chart patterns are a great way of viewing price actions which occur during the stock trading period.

  Chart patterns tend to repeat themselves over and over again which helps to appeal to human psychology and trader psychology in particular.

• If you are able to learn to recognize these patterns early they will help you to gain a real competitive advantage in the markets.

  Just as volume, support and resistance levels, RSI, and Fibonacci Retracements and other technical indicators, stock chart patterns helps in identifying trend reversals and continuations.

  Types of Chart Patterns:

  Chart patterns can be basically classified into:

• Continuation patterns: These kinds of chart patterns give continuation signals of the ongoing trend
• Reversal Patterns: These kinds of chart patterns give reversal signals
• Bilateral Patterns: These kinds of chart patterns shows uncertainty and high volatility in the market.

• Here are the 10 most useful chats patterns which will help you in trading: