Forex

Traditional geometric chart formations were originally identified in
early technical literature, a subject sometimes referred to as charting,
and analysts who rely heavily on these techniques are often called
chartists. There are two major subcategories of geometric chart formations:
reversal and continuation patterns.
The term reversal pattern can .be slightly confusing. These patterns
indicate that the existing trend is unlikely to continue; they do
not necessarily indicate a reversal. The trend could simply end, with
prices meandering sideways for a while. Reversal patterns might be
more aptly called “noncontinuation” patterns and include such formations
as spike tops, u-bottoms, double tops and bottoms, head and
shoulders, and symmetrical triangles.
Continuation patterns, as the name implies, indicate that an existing
trend is likely to continue. These patterns include formations
such as wedges, pennants, and flags.