A chart pattern is a visual formation on a stock or financial asset’s price chart that helps traders and analysts predict future price movements based on historical behavior. These patterns form as a result of the buying and selling activity of market participants, and they provide insights into the market’s psychology and potential future direction. Chart patterns are an essential component of technical analysis, which traders use to make informed decisions. There are two main types of chart patterns: Chart patterns can be used to identify opportunities in any timeframe, whether short-term (intraday trading) or long-term (swing trading, investing). Traders often look for confirmation (such as a breakout from the…