Chart patterns trading guide
Learn how to recognise the most common chart patterns and understand what they reveal about market sentiment. This guide introduces long-term and short-term formations such as triangles, wedges and head-and-shoulders patterns, helping traders anticipate potential price breakouts, reversals and continuation moves with greater confidence.
Key takeaways
- Understand the difference between long-term and short-term chart patterns.
- Learn how to identify continuation and reversal formations.
- Discover how to confirm breakouts and avoid false signals.
- See how combining chart patterns with trend and support-resistance analysis can strengthen trade setups.
- Explore how risk-reward ratios and pattern confirmation can guide better trade management.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Ensure you fully understand the risks involved and seek independent advice if necessary.