Chart pattern

A chart pattern or price pattern is a pattern within a chart when prices are graphed. In stock and commodity markets trading, chart pattern studies play a large role during technical analysis. When data is plotted there is usually a pattern which naturally occurs and repeats over a period. Chart patterns are used as either reversal or continuation signals. Academics have criticized the use of chart patterns and technical analysis in general. In an efficient market, it should not be possible to consistently profit on such patterns. Included in this type are the most common chart patterns which have been introduced to chartists for more than a hundred years. Below is a list of the most commonly used traditional chart patterns: Reversal Patterns: Continuation patterns: Harmonic Pattern utilizes the recognition of specific structures that possess distinct and consecutive Fibonacci ratio alignments that quantify and validate harmonic patterns. These patterns calculate the Fibonacci aspects of these price structures to identify highly probable reversal points in the financial markets. This methodology assumes that harmonic patterns or cycles, like many patterns and cycles in life, continually repeat.