Chart Patterns
Also called: price patterns, triangle pattern, flag pattern, wedge
Chart patterns are recognisable price formations — triangles, flags, wedges, channels — treated as continuation or reversal signals. Their appeal is pattern recognition, which is also the reason for scepticism: humans find shapes in random data reliably, and randomly generated price series contain every classic formation. The disciplined use is as a framework for defining entry, stop and target rather than as a forecast.