Chart pattern is a shape drawn on the price chart to predict future price movements based on the past data. 
Chart patterns are split into below three types, depending on the price behaviour.
1 Reversal Chart Patterns: They signal the ongoing trend is about to change and price will reverse direction.
2 Continuation Chart Patterns:  They signal that ongoing trend will continue and price will continue in current direction 
3 Bilateral Chart Patterns: They signal that the ongoing trend will either continue or it can change direction. 

Examples of Chart pattern types.

Continuation Patterns Examples : 

  • Flag, Pennant
  • Rectangle
  • Price Channel
  • Measured Move – Bullish
  • Measured Move – Bearish
  • Cup with Handle

Reversal Patterns Examples : 

  • Double Top Reversal
  • Double Bottom Reversal
  • Head and Shoulders Top
  • Head and Shoulders Bottom
  • Falling Wedge
  • Rising Wedge
  • Rounding Bottom
  • Triple Top Reversal
  • Triple Bottom Reversal
  • Bump and Run Reversal

Bilateral patterns Examples : 

  • Ascending Triangle
  • Descending Triangle
  • Symmetrical Triangle

Traders & Investors chart patterns as a technical analysis tool to determine the projected price of securities. 

Practice Chart Patterns – Beginner