Top Chart Patterns Every Trader Should Know
1️⃣ Reversal Patterns (Trend Change Signals)
Head and Shoulders → Signals potential downtrend
Inverse Head and Shoulders → Signals potential uptrend
Double Top → Uptrend may reverse down
Double Bottom → Downtrend may reverse up
Triple Top / Triple Bottom → Stronger reversal signals
Rounding Top / Rounding Bottom → Gradual trend reversal
2️⃣ Continuation Patterns (Trend Continuation Signals)
Cup and Handle → Usually bullish continuation
Flags → Short consolidation, trend resumes after breakout
Pennants → Small triangles, trend continuation
Rectangles / Box → Sideways consolidation → breakout
Wedges
Rising Wedge → Usually bearish reversal
Falling Wedge → Usually bullish reversal
3️⃣ Triangle Patterns
Symmetrical Triangle → Breakout uncertain, watch closely
Ascending Triangle → Usually bullish breakout
Descending Triangle → Usually bearish breakout
4️⃣ Other Useful Patterns
Broadening Formation / Megaphone → High volatility, trend indecision
Channels (Up & Down) → Trend follow, support & resistance guide
💡 Tip: Always confirm patterns with volume, support/resistance, and overall trend before trading.
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