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Your Practice. Popular Courses. Login Newsletters. What Is a Pattern? Key Takeaways Trading patterns can deal with historical price patterns of an asset.

follow Examples for stocks would include: past stock prices, moving averages, and post earnings stock movements. Other types of patterns to consider can deal with macro data points. Examples would include how the overall market's price behavior is acting, whether or not a group is breaking out or down, and other historical tendencies a trader notices. Compare Investment Accounts.

"pattern" in American English

The offers that appear in this table are from partnerships from which Investopedia receives compensation. Related Terms Wedge Definition A wedge occurs in trading technical analysis when trend lines drawn above and below a price series chart converge into an arrow shape. Technical Analysis Definition Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume.

Flag Definition A flag is a technical charting pattern that looks like a flag on a flagpole and suggests a continuation of the current trend. The Measuring Principle Uses Chart Patterns to Find Buying Opportunities The measuring principle uses technical analysis of chart patterns to find stock levels which may indicate a leg down and a buying point for traders. Rectangle Rectangle is a pattern of securities on a chart.