Patterns are recognizable shapes that tend to lead to a move. They work because they reflect crowd psychology, and crowds behave in similar ways over and over.
There are two families. Reversal patterns (like head and shoulders or a double bottom) hint the trend is about to flip. Continuation patterns (like flags and triangles) hint the trend will resume after a pause.
Key takeaway
Reversal patterns warn of a turn. Continuation patterns say the trend takes a breath, then continues.
Tip. A pattern is a clue, not a promise. Wait for the level to actually break before you act.