To state the obvious, price movements that aren’t random follow a pattern. There are dozens of chart patterns that come into play on a regular basis and are effective on various time frames. The four that seem to pop up most often are trend lines, channels, wedges and head & shoulders patterns, which are described in some detail in this section. I’ll add more patterns over time.
Other Recommended Resources:
Thomas Bulkowski’s wonderful website explains the most common chart patterns and candlestick patterns, and provides real world examples and statistical success rates. My favorite aspect of the website is the visual index, which allows you to scan multiple patterns in search of one that fits what the market is doing. His books are extremely well-written and informative.