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--- chart_analysis:chart_patterns [2023/05/22 14:44]
jayanthi [Chart Patterns]
+++ chart_analysis:chart_patterns [2023/05/22 14:50]
jayanthi [Chart Patterns]
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 ====== Chart Patterns ======
-In the financial market, prices are determined by supply and demand forces. Are the buyers winning or the sellers winning? Chart patterns provide a visual representation of the battle between buyers and sellers so you can make your buy and sell decisions.
+In the financial market, prices are determined by supply and demand forces. Are the buyers winning or the sellers winning? Chart patterns provide a visual representation of the battle between buyers and sellers so you see if a market is trending higher, lower, or moving sideways. Knowing this can help you make your buy and sell decisions.
+There are tons of chart patterns and most of them can be divided into two broad categories—reversal patterns and continuation patterns. Reversal patterns indicate a trend change whereas continuation patterns indicate the price trend will continue after a brief consolidation. Note that these are general classifications. Sometimes, a continuation pattern can end up being a reversal pattern and vice versa, depending on specific circumstances.
 Below is a list of common chart patterns useful in technical analysis. Please see the [[:Chart_Analysis:Introduction_to_Chart_Patterns]] article for more details on how to use chart patterns when analyzing a chart.