# 3 Basic Technical Analysis Patterns

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Technical analysis is nothing but the study of chart patterns. There are different chart patterns in trading. But the most important and basic chart patterns are only three in technical analysis.

## Technical Analysis Patterns –

1. Continuous pattern
2. Reversal pattern
3. Consolidation pattern
1. Continuous Pattern – As the name suggests continuous means continuation of something, So continuation pattern means the continuation of the trend either bullish or bearish.
1. Bullish Continuous Pattern –

As we can see in the figure, the price was moving upside, consolidating for some time, and again starts moving in the upside direction, which is called the continuous bullish pattern. There are many continuous patterns of technical analysis like triangles, flags, pennants, rectangles, etc. We will discuss those later.

2. Bearish Continuous Pattern –

As we can see in the figure, the price was moving downside, consolidate for some time, and again starts move in the downside direction, that is called the continuous bearish pattern. There are many continuous bearish patterns in technical analysis like triangles, flags, pennants, rectangles, etc. We will discuss those later.

2. Reversal Pattern – As the name suggests, a reversal pattern means a reversal of a trend. Reversal of trend means price moves reverse of trend or in opposite direction.

1. Bullish Reversal Pattern –

As we can see in the figure, the price was moving in a downtrend then consolidate for some time and it reverse from this level and started moving in an upside direction that is nothing but the reversal of a trend. There are different types of bullish reversal patterns, we will discuss those later.

2. Bearish Reversal Pattern –

As we can see in the figure, the price was moving in an uptrend then consolidate for some time and it reverse from this level and starts moving in the downside direction which is nothing but a reversal of a trend.

3. Consolidation Pattern –

In above both types of patterns, we have seen the consolidation of price either in reversal or continuous pattern. Consolidation means price moves in a specific level or you can say in support and resistance form. Consolidation breakout tells us the next move of stock or share or commodity.