📊 Basic Chart Patterns (For Beginners)

Today I want to share a few basic chart patterns that are very common in technical analysis. These patterns help traders understand possible trend reversals in the market. I am explaining them in very simple words so beginners can easily understand.

🔹 Double Top

The Double Top is a bearish reversal pattern.
It forms when price reaches the same resistance level two times and fails to break it. After the second top, price usually moves downward.

Appears after an uptrend

Neckline break confirms the pattern

Mostly used for sell setups

🔹 Double Bottom

The Double Bottom is a bullish reversal pattern.
Price touches a support level twice and fails to go lower. After breaking the neckline, price often moves upward.

Appears after a downtrend

Shows buying strength

Commonly used for buy entries

🔹 Head and Shoulders

This is one of the most reliable bearish reversal patterns.
It consists of three peaks:

Left shoulder

Head (higher peak)

Right shoulder

When price breaks the neckline, it usually signals a trend change from bullish to bearish.

🔹 Inverse Head and Shoulders

The Inverse Head and Shoulders is the opposite of the normal one.
It is a bullish reversal pattern and forms after a downtrend.

Three bottoms instead of tops

Middle bottom is the lowest

Neckline breakout gives buy confirmation

Chart patterns work best when combined with:

Proper stop loss

Risk management

Support and resistance

Do not rely on patterns alone. Always practice and learn step by step.