Jump to content

Chart pattern

From Wikipedia, the free encyclopedia
This is an old revision of this page, as edited by Brettona (talk | contribs) at 19:46, 26 June 2025 (Created draft article on Geometric ABCD Pattern — a structural extension of the classic ABCD formation in technical analysis, with citations and neutral tone.). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

A chart pattern or price pattern is a pattern within a chart when prices are graphed. In stock and commodity markets trading, chart pattern studies play a large role during technical analysis. When data is plotted there is usually a pattern which naturally occurs and repeats over a period. Chart patterns are used as either reversal or continuation signals.

Traditional chart pattern

Included in this type are the most common patterns[1] which have been introduced to chartists for more than a hundred years. Below is a list of the most commonly used traditional chart patterns:

Reversal Patterns:

  1. Double Top Reversal
  2. Double Bottom Reversal
  3. Triple Top Reversal
  4. Triple Bottom Reversal
  5. Head and Shoulders
  6. Key Reversal Bar[2]

Continuation patterns:

  1. Triangle
  2. Flag and Pennant
  3. Channel
  4. Cup with Handle

Harmonic pattern

Harmonic Pattern[3] utilizes the recognition of specific structures that possess distinct and consecutive Fibonacci ratio alignments that quantify and validate harmonic patterns. These patterns calculate the Fibonacci aspects of these price structures to identify highly probable reversal points in the financial markets. This methodology assumes that harmonic patterns or cycles, like many patterns and cycles in life, continually repeat. The key is to identify these patterns and to enter or to exit a position based upon a high degree of probability that the same historic price action will occur.

Below is a list of commonly used harmonic patterns:

  1. Bat
  2. Butterfly
  3. Gartley
  4. Crab
  5. Deep Crab
  6. Shark
  7. 3 Drives
  8. AB=CD
  9. 5-0

Traders use the Potential Reversal Zone (PRZ) as an important level of support/resistance in their trading and price action strategy.

Geometric ABCD Pattern is a technical analysis structure used in financial trading, derived from the classic ABCD pattern but redefined through geometric alignment. Introduced in 2025 by financial trading educator Kenny Simon, the pattern emphasizes symmetry, intersection points, and precise structural alignment, rather than relying purely on Fibonacci or price projections.

Structure and Definition

The Geometric ABCD Pattern retains the traditional four-point structure—A, B, C, and D—but adds a key diagonal vector drawn from Point A to Point D. This line intersects the leg from Point C to Point D, forming a unique pivot known as the **Centroid**. The centroid is used as a potential activation or trigger point for entry decisions.

Only the C-to-D leg is traded, and Point D serves as both the projected exit zone and a structural anchor.

Validation and Fibonacci Criteria

To assess the validity of a potential pattern:

  • The distance of leg AB must equal CD (forming a geometric quadrilateral)
  • The retracement of Point C from A–B must meet or exceed the 38.2% Fibonacci retracement threshold
 - If the retracement is less than 38.2%, the pattern is considered invalid

Pattern Classification

The pattern is classified as:

  • **Bullish Geometric ABCD Pattern** – Centroid appears below the C–D leg; D is projected upward
  • **Bearish Geometric ABCD Pattern** – Centroid appears above the C–D leg; D is projected downward

Geometric Pattern Analysis (GPA)

The development of the Geometric ABCD Pattern led to the broader methodology known as **Geometric Pattern Analysis (GPA)**, which integrates pattern recognition with structure-based decision frameworks. GPA is a component of the manual trading system known as the **Geometric Trading Method (GTM)**, which incorporates the P.R.I.C.E trade plan model developed by Simon.

Certification and Professional Application

Graduates who complete the Geometric Trading Pattern certification under Bretton Financial Trading Academy are awarded the title of **Geometric Pattern Strategist (GPS)**, indicating proficiency in GPA, GTM, and manual structure-based trading strategies.

See also

References

  1. ^ "Chart Patterns". StockCharts.com. Retrieved 2019-05-23.
  2. ^ "Key Reversal Bar". FinanceStrategySystem. Retrieved 2018-04-10.
  3. ^ Harmonic Trading, Volume One: Profiting from the Natural Order of the Financial Markets By Scott M. Carney Published Apr 12, 2010 by FT Press.

Cite error: A list-defined reference named "SimonGTP2025" is not used in the content (see the help page).


Candlestick pattern

In technical analysis, a candlestick pattern is a movement in prices shown graphically on a candlestick chart that some believe can predict a particular market movement. The recognition of the pattern is subjective and programs that are used for charting have to rely on predefined rules to match the pattern. There are 42 recognized patterns that can be split into simple and complex patterns.

Steve Nison is the person who introduced candlesticks to the West.[1]

Below is a list of commonly used candlestick patterns:

  1. Engulfing
  2. Inside bar[2]
  3. Doji
  4. Pin bar
  5. Morning doji star
  6. Evening doji star
  7. Tweezer top
  8. Tweezer bottom

See also

References

  1. ^ Kilgore, Tomi. "The 'candlesticks man' says he's not buying stocks". MarketWatch. Retrieved 2018-12-31.
  2. ^ Muhammad, Ali (2021-08-22). "Understanding Inside Bar Pattern in Detail for Forex Trading". ForexBee. Retrieved 2024-01-28.
Retrieved from "https://en.wikipedia.org/w/index.php?title=Chart_pattern&oldid=1297529717"