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Dunn To PerfectionFoundation

Technical Analysis · Module 4: Patterns, Timeframes & Limits · Lesson 1

Chart Patterns

Intermediate 6 minLesson 10 of 12

Learning objectives

  • Explain chart patterns in plain language
  • Understand why it matters to markets
  • Recognise a common misconception

The concept

Patterns such as triangles, flags, double tops, and head-and-shoulders describe recurring shapes in price.

Why it matters

They offer a shared vocabulary for describing price behaviour.

How markets interpret it

Research on pattern reliability is mixed; many 'patterns' fail.

Key takeaways

  • Patterns describe; they don't guarantee.
  • Define them before, not after.

Knowledge check

Chart pattern reliability is…

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