Patterns in Trading: Three Figures That Save the Portfolio

Technical analysis is not just indicators. Price patterns act like a market radar if you know what to look for.

A double top and double bottom are trend reversal signals. The top indicates that the bulls are losing steam, and the upward pressure is weakening. The bottom, on the other hand, is a support level where a bounce often begins.

Head and shoulders is a classic reversal pattern. It appears after an uptrend and indicates a potential drop. If you see this pattern, don't ignore it.

The flag and pennant are continuation patterns. This is not a reversal, but a pause before the trend picks up momentum again.

The key to success: look at volumes and search for confirming signals. One pattern is not yet a signal, but two or three together form a picture.

Who actively uses patterns in their strategies? Which ones work best?