Market patterns typically fall into three main categories

Market patterns typically fall into three main categories:




1. **Trend Patterns**

- *Uptrend*: Higher highs & higher lows (bullish)

- *Downtrend*: Lower highs & lower lows (bearish)

- *Sideways/Range-bound*: Price moves horizontally between support/resistance




2. **Chart Patterns**

- *Continuation*: Flags, pennants, triangles (suggests trend resumes)

- *Reversal*: Head & shoulders, double tops/bottoms (indicates trend change)

- *Bilateral*: Symmetrical triangles (breakout direction uncertain)




3. **Candlestick Patterns**

- *Bullish*: Hammer, engulfing, morning star

- *Bearish*: Shooting star, dark cloud cover, evening star




**Key Drivers**:

- Volume confirmation (validates patterns)

- Timeframe (patterns differ on daily/weekly charts)

- False breakouts common (wait for close above/below levels)




*Pro Tip*: Combine patterns with indicators (RSI, MACD) for higher-probability trades. Always use stop-losses—patterns fail often.