Chart Patterns for Technical Traders

In Continuation of last week post on Reversal Candlestick Pattern for traders In this article we will focus on few important chart patterns,which will help you in making better trading decisions.
Bearish Head and Shoulders Pattern
The head and shoulders is probably the most popular pattern used by technical traders. It is easy to spot and sends a very powerful trend-reversal signal. It is comprised of two shoulders and a head. The first shoulder is created by a rise in the security and a subsequent decline, forming a peak. At the base of the peak, price consolidates and rallies again, but his time rising above the former peak and again declines. At this point you can see the left shoulder and the head.

When price rises for a third time, it doesn’t quite ...


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