Chart Patterns
Larger price shapes: reversals, continuations, and the levels they imply. 28 topics.
Head and Shoulders
A rally, a higher rally, and a lower rally, with a neckline through the two lows between them.
Inverse Head and Shoulders
A decline, a lower decline, and a higher low, with a neckline through the two highs between them.
Double Top
Two highs at a similar price, with a trough between them, completed by a break of that trough.
Double Bottom
Two lows at a similar price, with a peak between them, completed by a break of that peak.
Triple Top
Three failed tests of the same high, completed by a break of the support under them.
Triple Bottom
Three holds of the same low, completed by a break of the resistance above them.
Ascending Triangle
A flat ceiling and a rising series of lows, usually traded on a break of the ceiling.
Descending Triangle
A flat floor and a falling series of highs, usually traded on a break of the floor.
Symmetrical Triangle
Converging lower highs and higher lows, a pause whose direction comes from the break.
Rising Wedge
A narrowing advance: both bounds slope up, and the lower bound is steeper.
Falling Wedge
A narrowing decline: both bounds slope down, and the upper bound is steeper.
Bull Flag
A sharp rise followed by a small downward drift, then a break higher.
Bear Flag
A sharp drop followed by a small upward drift, then a break lower.
Bull Pennant
A sharp rise followed by a small symmetrical triangle, then a break higher.
Bear Pennant
A sharp drop followed by a small symmetrical triangle, then a break lower.
Rectangle Pattern
A pause between horizontal support and horizontal resistance.
Cup and Handle
A rounded base, a rally back to the old high, a small pullback, and a breakout.
Inverted Cup and Handle
A rounded top, a decline back to the old low, a small bounce, and a breakdown.
Rounding Bottom
A gradual saucer-shaped turn from decline to advance.
Rounding Top
A gradual dome-shaped turn from advance to decline.
Broadening Formation
A pattern of higher highs and lower lows, so the range is expanding.
Diamond Top
A broadening swing that then contracts, forming a diamond at the end of an advance.
Diamond Bottom
A broadening swing that then contracts, forming a diamond at the end of a decline.
Megaphone Pattern
Another name for a broadening range: higher highs and lower lows.
Channel Pattern
Price contained between two parallel trendlines.
Island Reversal
A cluster of candles separated by gaps on both sides, left behind as price reverses.
V-Top
A sharp high: price reverses from advance to decline with almost no pause.
V-Bottom
A sharp low: price reverses from decline to advance with almost no base.