Can chart patterns be used to make profitable trades?

Traders do the same things over and over again in the markets which creates the same patterns. You can use this knowledge to your advantage by finding and then trading these patterns to make profitable trades. There are endless amounts of chart patterns you can learn to use in your own trading.

How can chart patterns help you become a better trader?

In summary, mastering the art of chart patterns can help you become a better trader and understand how financial markets work. These repeated patterns, along with the integration of other technical indicators, will allow you to estimate the market sentiment and predict the next price movement.

What are the different types of chart trading patterns?

As we mentioned, there are different types of chart trading patterns. Those can firstly be categorized as bullish and bearish. Bullish chart patterns indicate that the downtrend is likely to be over, and a new bullish trend is about to begin.