What are chart patterns?

These patterns can be found on various charts, such as line charts, bar charts, and candlestick charts. Chart patterns that will be shown in the chart patterns cheat sheet below, are important in trading because they provide valuable insights into the market’s psychology and can help traders anticipate future price movements.

What is a line chart?

A line chart displays information as a series of data points connected by straight line segments. A line chart visually represents an asset's price history using a single line. Line charts usually only plot the closing prices, thus reducing noise from less critical times in the trading day, such as the open, high, and low prices.

What is a simple line chart?

Simple line charts are the most basic form, representing data points connected by a single line. They typically show the ending periods of a security or financial and economic data over a given period. Ideally, simple line charts are used to track the price trend of a single asset over time.