Chart Pattern Definition

A chart pattern is a recognizable formation created by price movements on a chart, used to help anticipate future price behavior.

What is a Chart Pattern?

Common chart patterns include triangles, head and shoulders, flags, and double tops or bottoms.

Traders use chart patterns alongside other technical analysis tools rather than relying on them in isolation.

A series of higher lows and a flat resistance level forming an ascending triangle is a recognizable chart pattern.

A candlestick chart is a price chart that displays the open, high, low, and close for a period using a body and wicks.

A capital gain is the profit realized when an asset is sold for more than its original purchase price.

Capitalization, or market capitalization, is the total market value of a company's outstanding shares.