Chart Patterns

Chart Patterns

Chart Reversal Patterns

Double Top
The double top is a major reversal pattern that forms after an extended uptrend. As its name implies, the pattern is made up of two consecutive peaks that are roughly equal, with a moderate trough in-between.
.... read more

Double Bottom
The double bottom is a major reversal pattern that forms after an extended downtrend. As its name implies, the pattern is made up of two consecutive troughs that are roughly equal, with a moderate peak in-between.
.... read more

Falling Wedge
The falling wedge is a bullish pattern that begins wide at the top and contracts as prices move lower. This price action forms a cone that slopes down as the reaction highs and reaction lows converge.
.... read more

Rising Wedge
The rising wedge is a bearish pattern that begins wide at the bottom and contracts as prices move higher and the trading range narrows. In contrast to symmetrical triangles, which have no definitive slope and no bullish or bearish bias, rising wedges definitely slope up and have a bearish bias.
.... read more

Head and Shoulders Top
A Head and Shoulders reversal pattern forms after an uptrend, and its completion marks a trend reversal. The pattern contains three successive peaks with the middle peak (head) being the highest and the two outside peaks (shoulders) being low and roughly equal.
.... read more

Head and Shoulders Bottom
The Head and Shoulders bottom is referred to sometimes as an Inverse Head and Shoulders. The pattern shares many common characteristics with its comparable partner, but relies more heavily on volume patterns for confirmation.
.... read more

Cup and Handle
Cup and Handle pattern (another name is Cup and Saucer) is a long term pattern which sometimes can take 2-4 month to form. However, it may occur during one day period and can be also found on the hourly charts.
.... read more

Chart Continuous Patterns

Flag
The flag formation provides signals for direction and price objective.
This formation represents a brief consolidation period within a solid and steep
upward or downward trend.
.... read more

Pennant
The pennants are closely related to the flags. The same principles apply.
The sole difference is that the consolidation area better resembles a pennant, as
the support and resistance lines converge.
.... read more

Triangle
Triangles can be visualized as pennants with no poles. There are four
types of triangles: symmetrical, ascending, descending, and expanding
(broadening).
.... read more

Rectangle
Also known as a trading range (or congestion), the rectangle formation
reflects a consolidation period. Upon breakout, it is likely to continue the
original trend. Its failure will change it from a continuation to a reversal pattern.
.... read more