A Pattern or chart pattern is a distinct formation on a stock chart that creates a trading signal, or a sign of future price movements. Chartists use these patterns to identify current trends and trend reversals and to trigger buy and sell signals.
Pattern Types have been grouped into several categories based on their behavior or the method that is used to detect the pattern. Examples of Pattern Categories are Bullish, Bearish, Classic, Short-term, Continuation and Reversal.
The number of days over which the pattern formed is called pattern duration or length of pattern. In searching for technical events, one may specify the pattern duration in days. Longer duration patterns generally forecast price movement over a longer period of time. For example, a 90 day pattern anticipates price movement over the long term, compared to a shorter-term 30 day pattern.
Types of Patterns
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