Chartist analysis, a method implemented in financial markets to forecast future price movements through analysis of past price data, trading volume and other historical market information is the name of technical analysis. The main methodology is based on graphs and financial indicators for detecting price trends and patterns.

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The essence of chart patterns is in their ability to give traders and investors the clues about the mood of the market, which shows the possible future price moves.Some key aspects include:

1. Identification of Trends: Chart patterns assist in the detection of price trend directions, the bullish (rising), bearish (declining) or consolidation (sideways).

2. Entry and Exit Points: Traders use chart patterns to seek for ideal entry and exit points to complete their trades at the lowest point and the highest price (or vice versa).

3. Risk Management: Both chart patterns and stop-loss orders make possible risk assessment and setting of loss limits for trading positions to avoid big losses.

4. Market Sentiment: Head and shoulders,and triangles, are important patterns because they help recognize market sentiment as the tool for identifying whether buyers or sellers are in control of the market and its direction in future.

5. Confirmation of Market: Chart patterns usually just confirm the other indicators such as technical tools or fundamental analysis.

To sum up, technical analysis also using chart patterns in contradiction with the traders and investors by using historical price data and market psychology. It is necessary to point out that charts are powerful tools but one should not rely on them exclusively because they are not foolproof and one must utilize other methods as well as risk management techniques.

The pattern which is known as head and shoulders pattern is a bearish reversal pattern that is noticed in the financial markets. It consists of three peaks: small (shoulders) (Two shoulders right and left)and one big (head). The downward sloping trendline indicates that a trend reversal might take place when the price goes below the support line (neckline), which happens to be the horizontal line that connects the lower support levels of the shoulders. This gearing is usually employed by the traders to anticipate the fall in the prices in a downward direction.

The inverse head and shoulders pattern forms during a downtrend with three troughs: a left shoulder, his lower head, and a right shoulder. The neckline, which curls up at the sides, unites the shoulder peaks. A breakout above the pendant of the pattern suggests that the pattern is confirmed, indicating that the pattern is an indication of a possible bullish reversal. Traders compute the distance from the head to the neckline to achieve price targets in event of breakout. It is a bearish turnabout pattern that means a change of minds towards the market.

Step1

In the first step, what you are seeing is a simple head and shoulder pattern drawn on the bullish side.

step2

In step 2, we will calculate the distance from the neckline top to the head for the calculation of the take profit (TP). Then, we will draw a red box that we will later place on the top of the neckline. This will help us know where to position our TP.

step 3

In step 3, I have mentioned everything on the chart. Our entry level is at the neckline's retest level, our stop loss is below the left shoulder, and our take profit (TP) is at the top of the red box. We have placed the red box at the top of the neckline, which we used for calculation from the neckline to the head. Now, we have positioned that red box at the top of the neckline, and the top of that box will be our TP.

_{Sacrenshort taken out from Google drive}

When it comes to trading the STEEMUSDT pair, I don't use chart patterns at all. I've been trading since 2019, and initially, I used to trade based on chart patterns or trendlines. However, now I trade based on the Smart Money Concept and the concept of liquidity. I've developed my own indicator called DANIFX SMC Which is nOt published But i have Script Known as Pinescript, which helps me map the Smart Money structure. I analyze the STEEMUSDT pair based on the Smart Money Concept and liquidity. In the contest, you asked about Question Patterns, so I felt compelled to apply patterns on the chart and write about them.

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