Chart patterns are statistical results over the past. The result has given us indication where the price will likely to move after forming a certain pattern. We're going to introduce briefly some of the major chart patterns.

Trend Reversal
Head and Shoulders, it's a trend reversal pattern. Once the neckline is broken and the price should not rebound above the neckline that has become a resistant line. The target price after breaking the neckline is usually the distance from the peak of the head to the neckline and projected it from the point where the neckline is broken.

Double Tops/Bottoms, it's another trend reversal pattern. Similarly, once the neckline is broken and the price should not rebound above the neckline that has become a resistant line. The target price after breaking the neckline is usually the distance from the peak of the head to the neckline and projected it from the point where the neckline is broken.

Consolidation
It usually happens after a sharp upward or downward movement.

• Wedge, the price usually continues with the same direction before the consolidation. Price goes up after a down wedge and goes down after an up wedge.
• Flag, it's similar to wedge. Price usually continues with the same direction before the consolidation.
• Diamond, it's an unusual price pattern. Breaking of any side of the diamond will go up or down to a target that has the same distance of the diagonal.
• Triangle, it's part of the wedge except that it's symmetrical. The chances of breaking either upside or downside are almost the same.