Lesson 4: Chart Patterns & Risk Management

Lesson Overview
Chart patterns and risk management help traders plan trades with discipline.

Common Chart Patterns
Head and shoulders
Double top and double bottom
Triangles and flags

Market Psychology Behind Patterns
Patterns reflect collective trader behavior and expectations.

Risk Management in Technical Trading
Setting stop-loss levels
Managing position size
Maintaining risk-reward balance

Common Beginner Mistakes
Overusing indicators
Ignoring risk management
Trading without a plan

Key Takeaway
Technical analysis works best when combined with proper risk control.