Chart pattern

A chart pattern or price pattern is a pattern within a chart when prices are graphed. In stock and commodity markets trading, chart pattern studies play a large role during technical analysis. When data is plotted there is usually a pattern which naturally occurs and repeats over a period. Chart patterns are used as either reversal or continuation signals.

Academics have criticized the use of chart patterns and technical analysis in general. In an efficient market, it should not be possible to consistently profit on such patterns.

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