Part I. Basic chart patterns. Commander in Pips: Hi there. So we’ve moved forward significantly and studied a lot of different tools for trading – lines, Fibonacci, candlestick patterns, indicators and others. Today we start with classical patterns. Pipruit: So, this will be something like candlestick patterns? Commander in Pips: The idea is the same, but while candlestick patterns consist just with 1-3 candles or trading periods, classical patterns have no definite number of trading periods. Pipruit: Hm, and why do they call “patterns” then? How we will identify them? Commander in Pips: Very simple – by shape. The major difference with Japanese patterns is in different way of identification. It comes rather from shape of pattern and not from relative possession of side-by-side trading periods and their close prices. These patterns call “classic”, because they were invented and found in 30-60s of 20th century. From time to time they received different additional details and nuances from different well-known traders. They are products of American technical analysis, so that’s why they call “classical” and also because they initially were based on bar charts, rather than candlesticks charts. Bar charts are only have been used in Europe and US till 50-60s. Despite the fact that these models are “classical”, they continue to work nowadays also. Although trading them today is much harder than in 50s and 60s, because these models are well-known and market makers very often use them to grab public’s stop orders. Nevertheless, you have to know them. Besides, they are really looking beautiful. Pipruit: And what are they for?