Learn Chart Patterns

Hi i’m following the chart pattern section (along with a trading book), but i’m having some problems about memorizing them. Do you know a better way? How you learned them?

it’s best to identify those patterns on the charts, and the more time you spend on the charts , the easier it’ll be to spot them. I took Geology in college as an elective course, and I had to memorize the different types of rocks and had exams on that lmao so they’ll become second nature to you eventually, trust me

Chart patterns are formed with a combination of key-levels.

Rising wedge: two uptrend lines;
Symmetrical triangle: uptrend line + downtrend line;
Descending triangle: downtrend line + support.

If you learn how to draw key-levels (trend lines + support and resistance) and how to use them, you don’t have to remember any name. You only need names to sound cool, not to make money :rofl:

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I used to seek out char patterns in a very methodical way and was always looking you for new variations from the original Japanese formats.

But in practice these don’t give much better results in monetary terms (at least, not for me) than just buying in uptrends and selling in downtrends. If you keep any kind of journal or ever review your trades its easy to see the easy and big winners were the trades that developed into consistent trends after you entered them. At this point of realisation, you see that the entry chart pattern wasn’t the most important factor, it was the trend that made the money. Even if you hadn’t seen the pattern you would definitely have seen the trend…

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PS: Many classic chart patterns can only be drawn up on a stock chart, which features overnight closed sessions and opening gaps.

its like driving a car …at first you need to thing about so many things like when to break when to speed up when to shift the gear …look left look right remembering traffic rules etc … but with time and more practice it gets easier and after a while you dont need to think about kind of these stuff anymore it goes naturally …same with patterns and trading :slight_smile:

or make yourself a cheat sheet for the beginning and pin it next to the screen :wink:

practice makes perfect, i spent 3 hours a day just to learning/ refreshing my memory of chart pattern

It comes naturally with practice. You just have to learn to draw and use trend lines and support and resistance.

You’ll get used to it eventually.

I’m equally struggling…pls about the chart patterns which tf does it work with a greater percentage

The common patterns work alright on any time frame - so that if a reversal pattern that takes 6 bars to form and 4 bars to complete the reversal, then the length of the bars in time is not so important.

However, the lower the time-frame you use, the more unexpected volatility can occur. Simply, on a daily time-frame, it will take many large players to make many large transactions to move the price of EUR/USD by an average daily range - but to move the price only the average range it normally makes in 5 minutes tales less players and less money.

Recognise that patterns don’t just “predict” where price will go - they are more useful as a guide to what you should do - where to enter, where to put your stop, where to exit, how much money to use, how long to hold, etc.

It’s about practice, the more time you spend on it, the more you will know it by heart. It really is how it’s about learning anything new. It takes practice and then you internalise it.