| 1. | a decorative design, as for wallpaper, china, or textile fabrics, etc. |
| 2. | decoration or ornament having such a design. |
| 3. | a natural or chance marking, configuration, or design: patterns of frost on the window. |
| 4. | a distinctive style, model, or form: a new pattern of army helmet. |
| 5. | a combination of qualities, acts, tendencies, etc., forming a consistent or characteristic arrangement: the behavior patterns of teenagers. |
| 6. | an original or model considered for or deserving of imitation: Our constitution has been a pattern for those of many new republics. |
| 7. | anything fashioned or designed to serve as a model or guide for something to be made: a paper pattern for a dress. |
| 8. | a sufficient quantity of material for making a garment. |
| 9. | the path of flight established for an aircraft approaching an airport at which it is to land. |
| 10. | a diagram of lines transmitted occasionally by a television station to aid in adjusting receiving sets; test pattern. |
| 11. | Metallurgy. a model or form, usually of wood or metal, used for giving the shape of the interior of a mold. |
| 12. | Numismatics. a coin, either the redesign of an existing piece or the model for a new one, submitted for authorization as a regular issue. |
| 13. | an example, instance, sample, or specimen. |
| 14. | Gunnery, Aerial Bombing.
|
| 15. | to make or fashion after or according to a pattern. |
| 16. | to cover or mark with a pattern. |
| 17. | Chiefly British Dialect.
|
| 18. | to make or fall into a pattern. |
pat·tern (pāt'ərn) n.
v. tr.
To make a pattern. [Middle English patron, from Old French; see patron.] |
Pattern
In technical analysis, the distinctive formation created by the movement of security prices on a chart. It is identified by a line connecting common price points (closing prices, highs, lows) over a period of time. Chartists try to identify patterns to try to anticipate the future price direction. Also known as "trading pattern".
Investopedia Commentary
Patterns in security prices occur daily. However, although the various kinds of price patterns may in hindsight be easy to understand and see on paper, it is much harder to spot, and trade these formations in real time. There are many different kinds of patterns in technical analysis: the cup and handle, ascending/descending channels and, among others, the head-and-shoulders pattern.
Related Links
Introduction To Technical Analysis
Price Patterns - Part 1
Continuation Patterns - Part 1
Advanced Fibonacci Applications
See also: Ascending Channel, Cup and Handle, Descending Channel, Head and Shoulders Pattern, Technical Analysis