Price Patterns are graphical representations of price action that occur frequently in financial markets and can be used in technical analysis to identify potential buying or selling opportunities. Price patterns can be used to make predictions about future price movements based on past market behavior. However, it’s important to consider other technical and fundamental factors before making a trade decision.
What are common types of price patterns in technical analysis?
Some common price patterns include:
Trend lines
Head and Shoulders
Double Tops/Bottoms
Flags and Pennants
Triangles (ascending, descending, symmetrical)
Wedges (rising, falling)
Gaps
