Pattern Recognition

Price patterns provide powerful clues about future price direction and distance. Some patterns presage trend reversals while others give us a heads up that there’s a good chance the previous trend will continue after taking a “breather.”

You’ll see patterns more clearly by drawing trendlines, as illustrated with the below examples. On that note, please don’t spend too much time trying to memorize all of these. For now, just know they exist, are important, and that you can benefit by learning how to recognize them.

Continuation Patterns

Reversal Patterns

For me, the beauty (and simplicity) of price patterns is they’re visual… I see them as “pictures” illustrating what’s happening within the market and where it’s likely to go. In the course, we really dive into patterns and how to use them for maximum effectiveness. When used in conjunction with the other AIME tools, I find that patterns can be valuable leading indicators.