Chart Patterns
The classic shapes traders look for, what each one usually signals, and what counts as confirmation. Patterns are probabilities, not promises.
Head & Shoulders
ReversalThree peaks with the middle one highest; buyers are losing momentum.
Confirm: Close below the neckline on rising volume.
Inverse H&S
ReversalMirror image: three troughs, sellers exhausted at the head.
Confirm: Close above the neckline.
Double Top
ReversalPrice fails twice at the same resistance.
Confirm: Break below the middle trough.
Double Bottom
ReversalPrice holds twice at the same support.
Confirm: Break above the middle peak.
Ascending Triangle
ContinuationFlat resistance with higher lows — buyers step in earlier each time.
Confirm: Breakout above the flat top.
Descending Triangle
ContinuationFlat support with lower highs — sellers press earlier each time.
Confirm: Breakdown below the flat base.
Symmetrical Triangle
BilateralConverging highs and lows; a coiled range.
Confirm: Break in the direction of the prior trend, ideally with volume.
Bull Flag
ContinuationSharp rally, then a tidy downward-sloping channel as it rests.
Confirm: Break above the flag's upper line.
Bear Flag
ContinuationSharp drop, then a small upward drift before continuing.
Confirm: Break below the flag's lower line.
Cup & Handle
ContinuationRounded base followed by a shallow pullback (the handle).
Confirm: Breakout above the rim on volume.
Rising Wedge
ReversalHigher highs and higher lows but converging — momentum fading.
Confirm: Break below the lower trend line.
Falling Wedge
ReversalLower highs and lower lows converging — selling drying up.
Confirm: Break above the upper trend line.