Directional Traders are good at spotting patterns.
But 98.8% of the new traders, don't know how to spot patterns.
I analyzed
@niki_poojary 's account, to learn the most important patterns to master.
Here are the 8 of the most important patterns: 🧵
1/ Cup and handle Pattern
Happens during an uptrend.
The cup portion has a U-shaped appearance.
The bears are getting weaker as they are unable to drive the prices below the last low.
Subhasish Pani uses this a lot in stocks to spot bullish trades.
2/ Inverse Cup and Handle Pattern
Happens during a downtrend.
The cup portion has a reverse U-shaped appearance.
The bulls are getting weaker as they are unable to drive the prices above the last high.
Subhasish Pani uses this a lot in stocks to spot bearish trades.
3/ Double Bottom Pattern
It is a bullish pattern that has the shape of a "W".
The market tries twice to break the lows but is unsuccessful.
This is a reversal pattern to observe during a downtrend for a bullish trade.
4/ Double Top Pattern
It is a bearish pattern that has the shape of an "M".
The market tries twice to break the highs but is unsuccessful.
This is a reversal pattern to observe during an uptrend for a bearish trade.