Premium Chart Pattern Knowledge

Psychological Foundations of Premium Patterns

Premium patterns are effective because they exploit:

1. Retail Traders’ Fear

People exit during fake breakouts.

2. Greed

People enter late into a move.

3. Manipulation

Institutions trigger false moves to collect liquidity.

4. Volume Behavior

Smart money enters quietly and exits loudly.

5. Market Cycles

Price moves in phases—accumulation, manipulation, trend, distribution.

Premium chart patterns help traders recognize these phases.