Basic stock patterns refer to recurring formations or configurations that appear on price charts and are used by traders and analysts to identify potential market movements. These patterns often reflect the collective behavior of market participants and can provide insights into future price action. Some of the fundamental stock patterns include:

1. Head and Shoulders: This pattern consists of three peaks, with the middle peak (the head) being higher than the other two (the shoulders). It typically indicates a reversal from an uptrend to a downtrend.

2. Double Top and Double Bottom: These patterns consist of two peaks or troughs, respectively, indicating potential trend reversals. A double top forms at the end of an uptrend, while a double bottom forms at the end of a downtrend.

3. Triangles: Triangles are continuation patterns that form when the price consolidates within converging trendlines. They include ascending triangles, descending triangles, and symmetrical triangles.

4. Flags and Pennants: These patterns are short-term continuation patterns that occur after a strong price movement. Flags are rectangular-shaped patterns, while pennants are small symmetrical triangles.

5. Cup and Handle: This pattern resembles a cup with a handle and indicates a bullish continuation. It typically forms after a prolonged uptrend, with the cup representing a consolidation phase and the handle indicating a brief pullback before the uptrend resumes.

Understanding and recognizing these basic stock patterns can help traders anticipate market movements and make more informed trading decisions. However, it's essential to combine pattern analysis with other technical indicators and risk management strategies for successful trading.

Basic stock patterns are common chart formations that traders use to identify potential price movements and market psychology. They are divided into two main categories: continuation and reversal patterns. Continuation patterns, like flags, pennants, and triangles, suggest that the current trend will likely continue after a brief pause. Reversal patterns, such as head and shoulders, double tops, and double bottoms, signal that the trend may be about to change direction. These patterns form as a result of supply and demand dynamics, reflecting the behaviour of buyers and sellers. By recognising them, traders can make more informed decisions on entry and exit points. While helpful, patterns should be combined with volume analysis and indicators for stronger confirmation.