Important Chart Patterns Considerations
Please take into consideration the following:
1. Most technical chart patterns require confirmation in order to complete the pattern.
2. Chart patterns are present in all timeframes, from the monthly chart to the minute chart. But remember, the greater the time frame the more significant the pattern is. For instance, a rectangle can be formed in the 5-minute chart and at the same time a rectangle can also be formed in the 1-hour chart, in this case, the latter rectangle is more significant. But it doesn’t mean that a pattern in a 5 minute chart is not significant, it means that if there are two patterns on different timeframes, the pattern with the longer time frame is more significant. All patterns represent the same supply and demand interaction in different time frames.
3. It is advised to use other techniques in combination with chart patterns, such as candlestick patterns, technical indicators, etc. this way we will increase the significance of every signal.