The first, continuation patterns, indicating pauses in trends, forecasting that the previous direction will continue after some time the second, reversal patterns, point to changes of trends that can be allocated into either top or bottom formations. Generally speaking, there are two major forms of patterns, with chart patterns taking the form of one or the other. This means that stock charting patterns must be considered within a wider market context in order to serve individual investment strategies. Patterns can also be open to subjective interpretation, with multiple traders spotting different levels of risk or opportunity within the same pattern. It’s important for investors to remember that while technical analysis helps to forecast market outcomes, all trading carries inherent risk within it. Any general stock chart is a combination of countless different patterns and its accurate analysis depends upon constant study, long experience and knowledge of all the fine points, both technical and fundamental, and, above all, the ability to weigh opposing indications against each other, to appraise the entire picture in the light of its most minute and composite details as well as in the recognition of any certain and memorised formula.’

‘The science of chart reading… is not as easy as the mere memorising of certain patterns and pictures and recalling what they generally forecast. In this formative book, Schabacker stated: In 1932, Richard Schabacker published Technical Analysis and Stock Market Profits, the basis of modern stock chart pattern analysis. They can be viewed through either a short-term or long-term lens, informing the strategies of day traders and traditional long-term investors alike. Chart patterns can provide comprehensive frameworks that identify progress in the market between bullish investors and bearish investors, enabling technical analysts to forecast how the market is responding and moving. There is no single superior chart pattern, with a variety of stock chart patterns useful in examining varying trends across different markets. Stock chart patterns are the shapes formed within price charts that indicate what a stock price is likely to do next, based on its past behaviour. With advanced research and stock charting tools, beginner and experienced investors alike can make the use of stock chart patterns within moomoo’s apps in order to maintain and develop their investment strategies and market approach. Moomoo is an online stock broker that offers a robust mobile and desktop trading platform to millions of users around the globe. Forming the basis of technical analysis, stock chart patterns can be used alongside a wide range of technical indicators and tools in order for traders to build insights and strategy around stock patterns, past performances and emerging trends. Stock chart patterns are tools commonly used by investors and traders who are looking to understand market patterns.

Stock patterns