Lesson 2: Classic Chart Patterns

Lesson Overview
Chart patterns represent recurring price structures formed by market psychology.

Reversal Chart Patterns
Head and shoulders
Inverse head and shoulders
Double top and double bottom

Continuation Chart Patterns
Flags and pennants
Triangles
Rectangles

Pattern Formation and Context
Patterns are most reliable when aligned with trend direction and volume.

Key Takeaway
Chart patterns reflect trader behavior and expectations.