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Chart Patterns

Master the 20 Essential Chart Patterns used by professional traders. Recognize these shapes to predict future price movements with higher accuracy.

BearishReversal

Head and Shoulders

A baseline with three peaks, where the outside two are close in height and the middle is highest. Indicates a reversal from a bullish trend.

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BullishReversal

Inverse Head and Shoulders

The opposite of the Head and Shoulders. Three troughs, the middle being the deepest. Signals a reversal from a bearish trend.

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BearishReversal

Double Top

Two peaks at approximately the same price level. Indicates that the asset has reached a resistance level it cannot break.

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BullishReversal

Double Bottom

Two troughs at approximately the same price level. Indicates strong support and a potential reversal to the upside.

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BearishReversal

Triple Top

Three peaks at the same level. A stronger version of the Double Top, indicating very strong resistance.

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BullishReversal

Triple Bottom

Three troughs at the same level. A stronger version of the Double Bottom, indicating very strong support.

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BullishContinuation

Bull Flag

A sharp rise (pole) followed by a rectangular consolidation channel sloping downwards. Usually breaks out to the upside.

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BearishContinuation

Bear Flag

A sharp drop (pole) followed by a rectangular consolidation channel sloping upwards. Usually breaks out to the downside.

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BullishContinuation

Bull Pennant

Similar to a flag but the consolidation forms a small symmetrical triangle. Indicates a pause before the trend continues up.

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BearishContinuation

Bear Pennant

Similar to a bear flag but the consolidation forms a small symmetrical triangle. Indicates a pause before the trend continues down.

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BullishContinuation

Ascending Triangle

A flat resistance line and a rising support line. Buyers are getting more aggressive, pushing lows higher.

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BearishContinuation

Descending Triangle

A flat support line and a falling resistance line. Sellers are getting more aggressive, pushing highs lower.

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NeutralBilateral

Symmetrical Triangle

Converging trendlines where highs are lower and lows are higher. A breakout can happen in either direction.

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BullishContinuation

Cup and Handle

A U-shaped cup followed by a short pullback (handle). A very bullish continuation pattern.

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BearishContinuation

Inverse Cup and Handle

An inverted U-shape followed by a short rally. A bearish continuation pattern.

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BearishReversal

Rising Wedge

Converging trendlines sloping upwards. Indicates weakening buying pressure and a potential reversal down.

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BullishReversal

Falling Wedge

Converging trendlines sloping downwards. Indicates weakening selling pressure and a potential reversal up.

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BearishReversal

Rectangle Top

Price bounces between parallel support and resistance lines at a top. A breakout below support confirms the reversal.

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BullishReversal

Rectangle Bottom

Price bounces between parallel support and resistance lines at a bottom. A breakout above resistance confirms the reversal.

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BullishReversal

Rounding Bottom

A long, U-shaped consolidation at a bottom. Signals a gradual shift from bearish to bullish sentiment.

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BearishReversal

Rounding Top

A long, inverted U-shaped consolidation at a top. Signals a gradual shift from bullish to bearish sentiment.

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BearishReversal

Bump and Run Reversal (Bearish)

A rapid price surge (bump) followed by a breakdown below the lead-in trendline (run). Signals a major reversal at market tops.

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BullishReversal

Bump and Run Reversal (Bullish)

A rapid price drop (bump) followed by a breakout above the lead-in trendline (run). Signals a major reversal at market bottoms.

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BearishReversal

Broadening Top (Megaphone)

A series of higher highs and lower lows, forming a megaphone shape. Signals extreme volatility and an impending bearish reversal.

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NeutralReversal

Breakaway Gap

A price gap that occurs at the completion of a major chart pattern. Signals the start of a powerful new trend.

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NeutralContinuation

Runaway (Measuring) Gap

A price gap that occurs in the middle of a strong trend. Signals that the trend is accelerating and can be used to project price targets.

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NeutralReversal

Exhaustion Gap

A price gap that occurs at the end of a long trend. Signals that the trend is overextended and a major reversal is imminent.

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NeutralReversal

Island Reversal

A cluster of price action isolated by two gaps (an exhaustion gap and a breakaway gap). Signals a powerful and immediate trend reversal.

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BullishReversal

Broadening Bottom (Megaphone)

A series of lower lows and higher highs, forming a megaphone shape at a bottom. Signals extreme volatility and an impending bullish reversal.

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BearishReversal

Ascending Broadening Wedge

A series of higher highs and higher lows, but with the highs rising faster than the lows, creating an upward-sloping megaphone. Usually results in a bearish breakdown.

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BullishReversal

Descending Broadening Wedge

A series of lower lows and lower highs, but with the lows falling faster than the highs, creating a downward-sloping megaphone. Usually results in a bullish breakout.

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BullishReversal

Pipe Bottom

Two adjacent, long, downward-pointing spikes that look like parallel pipes. Signals a strong bullish reversal at the end of a downtrend.

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BearishReversal

Pipe Top

Two adjacent, long, upward-pointing spikes that look like parallel pipes. Signals a strong bearish reversal at the end of an uptrend.

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BearishReversal

Diamond Top

A rare but powerful reversal pattern that looks like a diamond. It starts with a broadening pattern and ends with a narrowing triangle.

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BullishReversal

Diamond Bottom

A rare but powerful reversal pattern that looks like a diamond. It starts with a broadening pattern and ends with a narrowing triangle at the end of a downtrend.

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BullishReversal

Three White Soldiers

Three consecutive long-bodied bullish candles with small wicks, each closing higher than the previous. Signals a strong bullish reversal.

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BearishReversal

Three Black Crows

Three consecutive long-bodied bearish candles with small wicks, each closing lower than the previous. Signals a strong bearish reversal.

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