The pattern in trading are particular shapes that the candlesticks of the charts take when there are movements on the market. These figures indicate that the market, after a particular arrangement is formed it will move in a certain way.
Patterns can indicate both a up and a down phase and knowing the main figures is important to understand the charts well. In fact, traders, knowing a pattern, know how to move and how to enter the market.
Patterns can be divided into two large groups:
- continuation pattern: indicate that the current trend could still continue;
- reversal pattern: instead they indicate the breaking of a trend and a change in the market. which will move in another direction.
To learn more about some of the most popular patterns, we advise you to read more about them in the dedicated sections of Money.it where you will find:
