Graphic pattern book | Graphic reading | Technical analysis
Chart formations are visual patterns that appear on a price chart of a financial asset and are used in technical analysis to identify future trends. These patterns can indicate trend reversals, trend continuation, or signals of market indecision.
There are many different types of chart formations, from simple patterns like trendlines and support/resistance to more complex patterns like triangles, flags, heads and shoulders, and more.
Traders use these graphical formations to identify potential trading opportunities in the financial market , based on how the price has behaved historically. They use technical analysis in conjunction with other analysis tools such as indicators and market news to make informed trading decisions.
Many traders believe that using graphical formations can help improve their trading decisions and increase their chances of success in the financial market.