1. Analyzing Chart Patterns: Introduction
  2. Analyzing Chart Patterns: Why Charts?
  3. Analyzing Chart Patterns: Head And Shoulders
  4. Analyzing Chart Patterns: Cup And Handle
  5. Analyzing Chart Patterns: Double Top And Double Bottom
  6. Analyzing Chart Patterns: Triangles
  7. Analyzing Chart Patterns: Flags And Pennants
  8. Analyzing Chart Patterns: The Wedge
  9. Analyzing Chart Patterns: Gaps
  10. Analyzing Chart Patterns: Triple Tops And Bottoms
  11. Analyzing Chart Patterns: Round Bottoms
  12. Analyzing Chart Patterns: Conclusion

Technical traders use the price history of any asset, and the price patterns that form, as a basis for making trading decision and analysis. This is called technical analysis, a technique that uses the price chart of an asset as a key determinant in forecasting where the price will go next. 

Price charts are highly visual, showing where a stock price has been in the past, the price's current trajectory, how volatile the price movements are, and whether the stock has a lot or little interest in it.

[ Investopedia Academy offers an in-depth video course that teaches identification of chart patterns.  Watch the trailer now for the Technical Analysis course. ]

What Can You Learn from Charts?

Chart patterns are a field of study within the larger field technical analysis. Chart patterns are geometric shapes created by the price movements of an asset, such as a stock, currency, or commodity. These geometric shapes provide a context for how the asset is moving right now, and the direction and magnitude of the price moves that may be forthcoming.

Chart patterns are a key tool in the technical trader's arsenal. This tutorial covers the main types of charts patterns, including how to trade them and what insights they provide into current and future price movements.


Analyzing Chart Patterns: Why Charts?
Related Articles
  1. Trading

    Five Chart Patterns You Need to Know

    Learn about five time-tested and trusted chart patterns that have been helping investors yield high returns for over a hundred years.
  2. Trading

    Long-Term Traders Are Bullish on Commodities

    Bullish chart patterns on key commodity-related ETFs suggest that the remainder of 2017 could be the best time to buy.
  3. Trading

    Most commonly used forex chart patterns

    These chart patterns provide entries, stops and profit targets that can be easily seen.
  4. Financial Advisor

    Moving Average

    Learn about this basic technical indicator and how you can use it to chart the value of a security's price over a set period.
  5. Trading

    Active Traders Shift Their Attention to Energy

    Bullish chart patterns within the energy sector suggest that now could be the time to buy.
  6. Trading

    3 Charts Suggesting It Is Time to Buy Commodities

    Given bullish chart patterns and clear trading signals, the final months of 2017 could be prime time to buy commodities.
Frequently Asked Questions
  1. What Is a Holistic Marketing Strategy?

    Understand what holistic marketing is, and learn how the components of this strategy work when applied to different business ...
  2. What's the First Stock Warren Buffett Ever Bought?

    Find out about Warren Buffett's first experience in stock market trading. Learn some of the Berkshire Hathaway CEO's basic ...
  3. When Is a Put Option Considered to Be 'in the Money?'

    Learn about put options, how these financial derivatives work and when put options are considered to be in the money related ...
  4. What Are Some of the Top Hostile Takeovers of All-Time?

    Learn about some of the most noteworthy hostile takeovers in history, including the KKR acquisition of RJR Nabisco and the ...
Trading Center