There are basic chart patterns that produce potent reversal signals that all traders should be aware of. These patterns can be used in combination with candlestick patterns, volume, and oscillators to produce buy and sell signals. They display emotional extremes that have been subdued by the opposing sentiment. These patterns are often accompanied by heavy volume, because the optimistic and pessimistic forces battling for right of way are usually defending their turf in full force. These patterns will help you to recognize and exploit a move more quickly. They will also help you to take profits sooner if you are on the wrong side of the formation.
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