# Chart Patterns

*Trading & Technical Analysis — Finicade finance glossary*

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.

**Also known as:** price patterns, triangle pattern, flag pattern, wedge

**Related terms:** [Head and Shoulders Pattern](https://finicade.com/glossary/head-and-shoulders-pattern), [Double Top](https://finicade.com/glossary/double-top), [Breakout](https://finicade.com/glossary/breakout), [Technical Analysis](https://finicade.com/glossary/technical-analysis), [Support and Resistance](https://finicade.com/glossary/support-and-resistance)

Source: https://finicade.com/glossary/chart-patterns