Chart patterns play a crucial role when analyzing the charts for trading. In technical analysis, the transitions in the trends are signaled by these charts patterns. By learning about these chart patterns, you will be able to learn how to profit from these technical price patterns. But before you start analyzing these patterns, it’s better to learn about it In order to get grips with them, here are top 10 chart patterns that every trader should know when trading in the stock market. But before knowing that let us discus basics of the chart patterns: What are Chart Patterns? Chart patterns put all buying and selling that’s happening in the stock market into a concise picture. It provides complete pictorial record of all trading, and also provides a framework for analyzing the battle between bulls and bears. Chart patterns can help us in determining who is winning the battle, and also allowing traders to position themselves accordingly. Chart pattern analysis can be used to make short-term as well as long-term forecasts. The data used by the chart patterns can be intraday, daily, weekly, monthly or yearly. Gaps and reversals may form in one trading session, while broadening tops and dormant bottoms may require many months to form. Why is it Important to analyze the Chart Patterns? Chart patterns are a great way of viewing price actions which occur during the stock trading period. Chart patterns tend to repeat themselves over and over again which helps to appeal to human psychology and trader psychology in particular. If you are able to learn to recognize these patterns early they will help you to gain a real competitive advantage in the markets. Just as volume, support and resistance levels, RSI, and Fibonacci Retracements and other technical indicators, stock chart patterns helps in identifying trend reversals and continuations.