Why Chart Patterns Work
Chart patterns work because they reflect real market behavior.
Key reasons:
✔ Human psychology repeats
People fear losses and chase gains. This creates repeatable price movements.
✔ Institutions accumulate or distribute slowly
Big players cannot buy or sell at once—they create patterns during accumulation/distribution.
✔ Liquidity zones
Patterns often form near liquidity pools where many stop-loss orders exist.
✔ Self-fulfilling nature
When many traders recognize the same pattern, they take similar trades, increasing accuracy.
Chart patterns work because they reflect real market behavior.
Key reasons:
✔ Human psychology repeats
People fear losses and chase gains. This creates repeatable price movements.
✔ Institutions accumulate or distribute slowly
Big players cannot buy or sell at once—they create patterns during accumulation/distribution.
✔ Liquidity zones
Patterns often form near liquidity pools where many stop-loss orders exist.
✔ Self-fulfilling nature
When many traders recognize the same pattern, they take similar trades, increasing accuracy.
I built a Buy & Sell Signal Indicator with 85% accuracy.
📈 Get access via DM or
WhatsApp: wa.link/d997q0
Contact - +91 76782 40962
| Email: techncialexpress@gmail.com
| Script Coder | Trader | Investor | From India
📈 Get access via DM or
WhatsApp: wa.link/d997q0
Contact - +91 76782 40962
| Email: techncialexpress@gmail.com
| Script Coder | Trader | Investor | From India
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
I built a Buy & Sell Signal Indicator with 85% accuracy.
📈 Get access via DM or
WhatsApp: wa.link/d997q0
Contact - +91 76782 40962
| Email: techncialexpress@gmail.com
| Script Coder | Trader | Investor | From India
📈 Get access via DM or
WhatsApp: wa.link/d997q0
Contact - +91 76782 40962
| Email: techncialexpress@gmail.com
| Script Coder | Trader | Investor | From India
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.