Beyond the Basics
Advanced chart patterns can provide trading opportunities when properly identified and confirmed.
Complex Reversal Patterns
- Cup and Handle: Bullish continuation pattern after a rounded bottom
- Inverse Head and Shoulders: Bullish reversal at market bottoms
- Diamond Pattern: Rare pattern signaling major trend change
Harmonic Patterns
Gartley, Butterfly, and Bat patterns use Fibonacci ratios to identify precise entry and exit points.
Multiple Timeframe Analysis
Confirm patterns across different timeframes. A pattern on a daily chart is stronger if the weekly chart agrees.
Pattern Failure
Not all patterns complete as expected. Always use stop losses and consider what happens if the pattern fails.