Chart Patterns (Day Trading)
Chart patterns are visual formations on price charts that help day traders predict short-term market moves. They reflect real-time supply and demand, showing when buyers or sellers are gaining control.
Common patterns include:
- Breakout patterns (triangles, flags): signal continuation
- Reversal patterns (head & shoulders, double tops/bottoms): signal trend change
Day traders use these patterns to:
- Time entries and exits
- Set stop losses
- Identify high-probability setups
📊 Key idea: Patterns don’t guarantee outcomes—they give you an edge when combined with risk management and discipline.