Chart Pattern
A recognisable shape made by price on a chart, which traders use to guess what might happen next.
In plain English
A recognisable shape made by price on a chart, which traders use to guess what might happen next.
A chart pattern is a shape price draws again and again: head and shoulders, double tops, triangles, flags.
They come in two families: continuation patterns (the trend pauses and carries on) and reversal patterns (the trend turns). They describe crowd behaviour and work as probabilities, never certainties.
Keep this word for good
Your free Private Swap Lounge saves the terms you’ve learned and quizzes you on them. Portal under construction. Expected delivery date is December 01, 2026.