What are the three big categories of chart patterns?

There are three main categories that classify the chart patterns:

• Candlestick chart patterns : they are aggregates of candlesticks (usually 1 to 5). Some famous ones are the harami, stick sandwich, advance block.
• Classic / traditional / common patterns : they often represent some mathematical shapes like symmetrical triangles, bullish flag patterns, head and shoulders or the wedge pattern.
• Harmonic patterns : they are created with several legs linked together with mathematical ratios (Fibonacci levels) for price levels.

Each of these patterns have very strict requirements. To help you easily get your hands on each pattern we detailed them in their own article with everything you should know.

Of course, you can use these patterns in conjunction together, with other indicators or locations (resistance levels or resistance lines) to enhance your hints about future price movements before you take a trade.