Becoming fluent in recognizing chart patterns

• Blockchain Council
• March 28, 2025

Trading can often feel overwhelming and challenging, as you need to develop various skills, including the ability to recognize chart patterns. If you know how to read a chart pattern, you can identify new opportunities and improve your chances of reaching success. Chart patterns are essential tools in a technical analysis that help traders have a better grasp of the price movements. A chart pattern can say whether an asset will maintain its position, take a reversed turn, or make a pause. 

Indeed, reading chart patterns is not the easiest job out there, as this task often implies endless hours of practice so that you can finally say you have mastered this skill and are an advanced trader. 

However, don’t worry, as things are not impossible, and if your wish is to become a great trader and be fluent in recognizing chart patterns, you can surely meet your goal. In this article, we will help you a little in this process by offering important tips regarding reading chart patterns. Ready to discover more? Let’s dive right into it. 

What are the attributes you should focus on when recognizing chart patterns? 

There are many attributes you need in trading and when you want to recognize chart patterns. Here are some of them: 

• Intuition: Professional traders can recognize patterns instantly, which is why they can say whether it is a good idea to trade by taking a look at these chart patterns. So, intuition matters a lot in trading and in recognizing chart patterns. 
• Speed and quality: As a good trader, you must learn how to recognize your chart pattern efficiency, which should mix speed with quality. Only in this way can you discover opportunities in the market and take advantage of them. 
• Consistency: Of course, you can’t develop your skills overnight, and if you think that you can learn to recognize chart patterns a few minutes after starting your trading journey, you should understand that things are different. Consistency holds a strong place when you want to identify chart patterns, as traders need to arrange charts and monitor the markets constantly to see if they’re going to have a good experience. 

How can you improve your ability to read chart patterns? 

Understand the basics

Of course, when you are new to something, you should first start with the basics. So, familiarize yourself with the foundation of technical analysis, such as trend lines, support, resistance levels, indicators, and moving averages. These notions will help you greatly in your trading journey, as they will validate and confirm the information you learn from chart patterns. Additionally, they can help you discover better details about the exits and entries, which will impact your success in trading. 

Of course, as your goal is to recognize chart patterns fluently, you should also start discovering the basic information for different chart patterns. For example, you should learn the most popular types, which include continuation patterns, reversal patterns, and bilateral patterns. Then, you need to discover the meaning of all these patterns so that you can know something about them when you read them from a technical analysis. 

Take a look at the most common patterns

There are many common patterns you can see in your trading journey when you start to analyze the market, but you should focus on the most reliable ones. Some patterns are used more than others, and some of them include triangles, head and shoulders, double tops and bottoms, flags, pennants, and wedges. Depending on their position on the chart, their color, and their form, these patterns can predict future price movements. Here are the main types of chart patterns:

Head and Shoulders

• They have three peaks, containing a large head that is situated between two smaller shoulders. 
• This chart pattern shows a turn from a bear market to a bullish one, or vice versa. 
• At this moment, the buying pressure is getting weak after an important uptrend. 

Triangles

• This chart pattern resembles a triangle, and it appears by drawing trendlines along the price range. 
• There are three main types of triangles: Descending, Ascending, and Symmetrical.
• They can show a potential reversal in the market. 

Flags and pennants

• They are continuation patterns, when the market is taking a pause while waiting for the trend to return. 
• They appear during sharp price movements. 

Gaps

• Indicate shifts in the sentiments of the market participants.
• They represent empty spaces when the prices usually increase. 
• The most important types are Exhaustion, Runaway, and Breakaway. 

Practice

Sometimes, you can learn more when practicing than from relying solely on theory, so it can also be a great idea to practice and use past examples in the market. You have many alternatives when you want to practice, such as online tools and historical data, where you can notice the trading skills you have gained so far and start identifying different chart patterns by using multiple scenarios, markets, and frames. You can also read about the past experiences of successful traders by reading books or articles on blogs. 

Monitor

When you start reading chart patterns, you should also monitor so that you can see whether your predictions are successful or not. You shouldn’t worry too much if you notice you have made mistakes, as most of the time, we learn the most when making errors, as we comprehend what we should avoid in the future. Keep a record of your trades so that you can better monitor your performance, make more profits, and gain better accuracy. 

Besides this, you should also keep track of your errors and mistakes and discover the reasons that have led to them. With this approach, you can find missed opportunities and improve your skills and experience while reading chart patterns. 

Conclusion

Having good trading pattern recognition can be compared with learning a new language, as you need to use the same effort and consistency if your goal is to be fluent. Trading pattern recognition is a skill you can develop in time and with practice. Only in this way can you say you are a successful trader and understand a chart pattern the moment you see it.