1/ A chart pattern is either bullish or bearish.
2/ Bullish chart patterns often emerge on or near a support level, at the end
of bearish trend or cycle and during a bullish trend.
3/ Bearish chart patterns regularly materialize on or near a resistance level, at
the end of a bullish trend or cycle and during a bearish trend.
4/ All chart patterns are distinctive, recognizable price structures.
5/ A chart pattern may develop into a fractal pattern if it duplicates itself on
6/ Every chart pattern has its exclusive price target.
7/ A bullish chart pattern during an uptrend is frequently a bullish continuation
pattern on that time frame.
Image = "Bullish continuation flag pattern"
8/ A bearish chart pattern during a downtrend is usually a bearish continuation
pattern on that period.
9/ The start of chart a pattern formation does not always guarantee its completion.
10/ A chart pattern is not a trend except the ABCD chart pattern.
11/ A bullish chart often precedes a bullish price-action.
12/ A bearish chart pattern often precedes a bearish impulsive wave or trend.
13/ Each chart pattern has its particular components.
14/ Patterns that take long to form are normally or theoretical more reliable than
those that take lesser time.
15/ When the same pattern appears side by side in the same time frame, the first
pattern confirms the second.
16/ A bullish chart pattern can correct a bullish price-action.
17/ A bearish chart pattern can correct a bearish price-action.
18/ A pattern on a lower period can allow traders to forecast the next price move
as the same pattern is expanding on a higher time frame.
19/ A chart pattern that is in a higher time frame may duplicate itself
on various lower time frames.
20/ Most corrective or contra-trend patterns have three core components.
21/ Most cyclical patterns have two principal components or eight main sub-components.
22/ Complex patterns are combinations of two or more different patterns.
setup that will generate trading signals on the lower periods.
24/ A bearish chart pattern with deteriorating fundamentals (or bearish sentiment) is bearish.
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