What are the different types of chart patterns?
Patterns are grouped into four classes: Classic patterns A group of patterns that typically have a horizon greater than 12 days and that have distinct price swings which form distinctive patterns. Classic pattern names often reflect the shape of the formation (Double Top, Double Bottom, Head and Shoulders Top, Ascending Triangle, and so on). Short-term patterns Short-term patterns, such as Hanging Man and Gap Up, are based on the shape and relationship of the price bars representing one or multiple consecutive trading days. The technical events confirm that the pattern has formed in the price bars. The events may suggest possible short-term price movement, or support or refute the possible price movement suggested by classic patterns. Short-term patterns are often considered supplementary. Indicator patterns Indicators are based on moving average calculations, which show the average value of a security’s price over a period of time. Indicator patterns include Double Moving Average Cros
