In continuation to our first article Chart Pattern Types: Part 1 we post main trading patterns which you can use as a basic tool in your trading or price action analysis:
1. Pick trading pair (stock, equity, index, other instrument)
2. Pick pattern
3. Check chart history for that patterns to see their confirmation. Remember that the higher timeframe you use the more chances future price will follow the pattern. On 1M and 5M timeframes its hard to use technical patterns as what price does there is generate NOISE.
We advice you to use timeframes above 4H to examine history for the patterns.
Here you can see main patterns:
Head and shoulders
Ascending and descending Triangles
Flags and Pennants
Cup and Handle
Add this page to your bookmarks so you can quickly check the patterns if you forget them. Fee free to ask any questions and don’t forget to share with your friends.