What are bilateral chart patterns?

They are known as falling wedge, rising wedge, bullish rectangle, bearish rectangle, bullish pennant and bearish pennant. Bilateral chart patterns are patterns that indicate or signal that the currency’s price can move in either direction. Either the price will move with the current trend, or the price will move against the current trend.

What are the different types of chart patterns?

Chart patterns fall broadly into three categories: continuation patterns, reversal patterns and bilateral patterns. Reversal chart patterns indicate that a trend may be about to change direction Bilateral chart patterns let traders know that the price could move either way – meaning the market is highly volatile

Are pennants a form of bilateral pattern?

Pennants can be either bullish or bearish, and they can represent a continuation or a reversal. The above chart is an example of a bullish continuation. In this respect, pennants can be a form of bilateral pattern because they show either continuations or reversals.

What are bearish chart patterns?

Bearish Chart Patterns Cheat Sheet Now onto some bearish patterns! Just like with the bullish patterns, bearish patterns are either signaling a reversal in a price trend, in this case, it would be reversing a strong upward trend; or, there is a brief correction in price, and a continuation pattern signals the price will continue its downtrend.