Mastering 12 Chart Patterns for Successful Trading

Understanding chart patterns is a powerful tool for any trader. They reveal the psychology of the market and allow you to predict future price movements.

Here are 12 basic patterns that can help you in trading:

#. Head and Shoulders: A classic reversal pattern that indicates a downtrend. Three peaks, the middle one being the highest (the "head"), with two lower ones on either side (the "shoulders"). A break of the neckline signals a strong decline.