CHART PATTERN STUDY
Chart patterns can be based on any price chart of any time-frame, and usually provide clear entry and exit signals, as well as price projections, stop levels and profit targets. Most patterns fall into two categories: continuation patterns and reversal patterns, but some are both continuation and reversal patterns, depending on the price breakout.
- Continuation patterns indicate a higher probability for the continuation of the existing trend. These are usually momentary consolidation or retracements within the trend. Common continuation patterns include flags and pennants, and the various triangle patterns, namely the symmetrical triangles, ascending triangles and descending triangles.
- Reversal patterns indicate a high probability that the existing trend has come to an end and will reverse direction. The common reversal patterns include double tops and double bottoms, tripple tops and triple bottoms, head and shoulders, rising and falling wedges, and the less common rounded tops and rounded bottoms.
Why do Chart Patterns Exist
Reversal Chart Patterns (Traditional)
Head & Shoulder Pattern
Inverted Head & Shoulder Pattern
How to confirm Head & Shoulder Pattern
Double Top Pattern
Double Bottom Pattern
How to Confirm Double Top/Bottom Patterns
Wedge Pattern (Reversal)
Wedge Pattern (Continuation)
How to Confirm Wedge Pattern
Continuation Patterns (Traditional)
How to Confirm Triangle Pattern
Cup & Handle Pattern
How to Confirm Cup & Handle Pattern.