It is also useful to understand swing counts, and how you can use them to identify the current trend of the market.

These will work hand-in-hand when breaking down and understanding chart patterns as well.



Next, let’s dive straight in, and study the different types of price patterns!

Just a quick refresher, there are 2 main types of chart patterns – continuation chart patterns and reversal chart patterns.

Continuation patterns continue the existing trend,

eg. downtrend > price pattern > downtrend,
or uptrend > price pattern > uptrend;

whereas reversal patterns change the existing trend,

eg. downtrend > price pattern > uptrend,
or uptrend > price pattern > downtrend.