Learn to identify and trade classic chart formations. From reversal patterns like Head and Shoulders to continuation patterns like Triangles and Flags.
These patterns signal potential trend reversals. They form at the end of an existing trend and indicate that price direction is about to change.
One of the most reliable reversal patterns signaling the end of an uptrend.
The opposite of Head and Shoulders, signaling the end of a downtrend.
Two peaks at similar levels indicating resistance and potential reversal.
Two troughs at similar levels indicating support and potential reversal.
Three peaks at similar levels showing strong resistance.
Three troughs at similar levels showing strong support.
These patterns suggest that the current trend will continue after a brief consolidation. They represent pauses in price action before the trend resumes.
Rising lows meeting horizontal resistance, typically breaks upward.
Falling highs meeting horizontal support, typically breaks downward.
A small rectangular consolidation following a strong move.
Small symmetrical triangle following a sharp price movement.
Horizontal consolidation between parallel support and resistance.
These patterns can break in either direction. The breakout direction determines whether they become bullish or bearish signals.
Additional high-probability patterns that don't fit neatly into other categories but are essential for technical traders.