Chart Pattern
Repetitive shape on a chart signaling a likely price scenario.
Beginner-friendly explanation
A chart pattern is a shape formed by price, like a triangle or double top. These patterns help predict price direction.
Example:
A triangle may signal a strong rise if price breaks upward.
Intermediate-level insight
Patterns are grouped into continuation (flag, channel…) and reversal (head and shoulders, double bottom…). They’re confirmed by volume and breakouts.
Example:
A double bottom on support with rising volume can confirm a bullish reversal.
Advanced perspective
Chart patterns are used in semi-automated or AI systems via recognition algorithms. Their reliability depends on macro and technical context.
Example:
An algorithm detects a cup and handle on the Nasdaq and estimates probability via backtesting.
Technical & Chart Analysis
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