103-20 Chart Pattern Accuracy

The following diagram shows us the most common reversal patterns and their relative probability of accuracy.

103-20 Chart Pattern Accuracy - 1

Price patterns and trend lines share the same characteristics.  The longer they are, the more important they are.  The more a price pattern touches a trend line and reverses, the more important that line is.  In this diagram, we see that the accuracy of a Triple Top is more than that of a Single Top.  Why? Because price touches the resistance level more times.

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