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Essential Guide To Trading Patterns

Chart Patterns Cheat Sheet

Turn pattern recognition into confident trade plans with our interactive guide of key chart patterns. Learn to spot bullish/bearish continuations, reversals, and neutral setups. Alongside a schematic, each pattern includes direction, target rules, reliability notes, and risk tactics (entry, stop, invalidation levels).
Tobi Frenzen
Author
Tobi Frenzen
Published
September 3, 2025
Updated
December 17, 2025
Author
Tobi Frenzen
Published
Sep 3, 2025
Updated
Dec 17, 2025
Patterns Cheat Sheet
Pattern Education
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Chart Patterns

Interactive Cheat Sheet
Use the filters to sort or narrow down your selection. Click any chart pattern to learn about its characteristics and how to trade the pattern, including suggested entry, stop loss and target levels.
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Ascending Broadening Wedge - Bearish Reversal Pattern
Bearish
Lesser-Known
Reversal Pattern
Ascending Broadening Wedge
Ascending Broadening Wedge - Bearish Reversal Pattern
Ascending Broadening Wedge
Bearish Reversal Pattern

Ascending Broadening Wedge

Chart Pattern

Pattern Bias
Bearish
Pattern Type
Reversal
Consolidation
No
Typically Breaks
Up or Down
Pattern Details

Ascending Broadening Wedge Pattern Overview

Characteristics
Diverging rising trendlines.
Description
Price rises with expanding swings; control alternates, often resolving lower but not guaranteed.
Reliability
Whippy; ensure multiple touches (3 per side) for validity.
Invalidation
Sharp reclaim through the wedge after break.

How To Trade Ascending Broadening Wedge?

Entry
Edge fades with reversal trigger or trade the break direction.
Stop
Beyond the opposite edge or recent swing extreme.
Target
Project wedge height from break (direction-dependent).
Ascending Channel - Bullish Continuation Pattern
Bullish
Classical
Continuation Pattern
Ascending Channel
Ascending Channel - Bullish Continuation Pattern
Ascending Channel
Bullish Continuation Pattern

Ascending Channel

Chart Pattern

Pattern Bias
Bullish
Pattern Type
Continuation
Consolidation
No
Typically Breaks
Up or Down
Pattern Details

Ascending Channel Pattern Overview

Characteristics
Parallel rising trendlines.
Description
A trend progresses between two upward-parallel boundaries; pullbacks to the lower boundary attract dip buyers.
Reliability
Mean-reverting within channel; trend at risk if lower rail breaks on volume.
Invalidation
Sustained breakdown of lower rail with expanding volume.

How To Trade Ascending Channel?

Entry
Buy near lower rail with reversal trigger or on breakout above upper rail.
Stop
Below lower rail (for buy-the-dip) or below the trigger swing low.
Target
Opposite boundary as near-term target; breakout = channel width projected.
Ascending Triangle - Bullish Continuation Pattern
Bullish
Classical
Continuation Pattern
Ascending Triangle
Ascending Triangle - Bullish Continuation Pattern
Ascending Triangle
Bullish Continuation Pattern

Ascending Triangle

Chart Pattern

Pattern Bias
Bullish
Pattern Type
Continuation
Consolidation
Yes
Typically Breaks
Up
Pattern Details

Ascending Triangle Pattern Overview

Characteristics
Flat resistance with rising lows.
Description
Horizontal resistance repeatedly caps price while higher lows compress price upward; a breakout clears overhead supply.
Reliability
Improves with multiple touches and higher lows; watch for volume expansion on breakout.
Invalidation
Rejection that closes back beneath resistance and breaks the rising trendline.

How To Trade Ascending Triangle?

Entry
Close above flat resistance or retest/flip to support.
Stop
Below the last rising swing low or below breakout retest.
Target
Add triangle height (widest part) to breakout level.
Bear Flag - Bearish Continuation Pattern
Bearish
Classical
Continuation Pattern
Bear Flag
Bear Flag - Bearish Continuation Pattern
Bear Flag
Bearish Continuation Pattern

Bear Flag

Chart Pattern

Pattern Bias
Bearish
Pattern Type
Continuation
Consolidation
Yes
Typically Breaks
Down
Pattern Details

Bear Flag Pattern Overview

Characteristics
Small parallel channel after a sharp decline.
Description
A sharp selloff (flagpole) followed by a brief, upward-tilting or horizontal channel that drifts against the trend; breakdown resumes decline.
Reliability
Best after impulsive selloff; expansion in volume/ATR on break helps.
Invalidation
Close back into/above the flag after breakdown.

How To Trade Bear Flag?

Entry
Breakdown close below flag base.
Stop
Above upper flag boundary or last lower high.
Target
Project flagpole height down from breakdown; conservative = flag height.
Bear Pennant - Bearish Continuation Pattern
Bearish
Classical
Continuation Pattern
Bear Pennant
Bear Pennant - Bearish Continuation Pattern
Bear Pennant
Bearish Continuation Pattern

Bear Pennant

Chart Pattern

Pattern Bias
Bearish
Pattern Type
Continuation
Consolidation
Yes
Typically Breaks
Down
Pattern Details

Bear Pennant Pattern Overview

Characteristics
Small contracting triangle after a sharp decline.
Description
A brief, symmetrical triangle that forms after a steep decline; usually resolves lower with the trend.
Reliability
Volume contraction into apex; expansion on breakdown.
Invalidation
Rejection that closes back inside the pennant after breakdown.

How To Trade Bear Pennant?

Entry
Close below lower pennant line.
Stop
Above upper pennant line or last minor swing high.
Target
Project pole height from pennant breakdown.
Broadening Formation / Megaphone - Neutral Indeterminate Pattern
Neutral
Classical
Indeterminate Pattern
Broadening Formation / Megaphone
Broadening Formation / Megaphone - Neutral Indeterminate Pattern
Broadening Formation / Megaphone
Neutral Indeterminate Pattern

Broadening Formation / Megaphone

Chart Pattern

Pattern Bias
Neutral
Pattern Type
Indeterminate
Consolidation
No
Typically Breaks
Up or Down
Pattern Details

Broadening Formation / Megaphone Pattern Overview

Characteristics
Expanding highs / lows; rising volatility.
Description
Diverging trendlines create higher highs and lower lows; volatility increases and direction is uncertain until resolution.
Reliability
High whipsaw risk; manage size and wait for decisive breaks for trend trades.
Invalidation
Rapid reversal that violates your edge or break direction.

How To Trade Broadening Formation / Megaphone?

Entry
Edge reversals with confirmation or trend break continuation.
Stop
Beyond recent swing outside the edge you're trading.
Target
Targets less reliable; swing trade edges or project height post-break.
Bull Flag - Bullish Continuation Pattern
Bullish
Classical
Continuation Pattern
Bull Flag
Bull Flag - Bullish Continuation Pattern
Bull Flag
Bullish Continuation Pattern

Bull Flag

Chart Pattern

Pattern Bias
Bullish
Pattern Type
Continuation
Consolidation
Yes
Typically Breaks
Up
Pattern Details

Bull Flag Pattern Overview

Characteristics
Small parallel channel after a sharp rally.
Description
A sharp advance (flagpole) followed by a brief, downward-tilting or horizontal channel that drifts against the trend; a breakout continues the prior leg.
Reliability
Best after strong, liquid advance; volume should contract in the flag and expand on breakout.
Invalidation
Close back inside/below the flag after breakout or loss of prior swing low.

How To Trade Bull Flag?

Entry
Breakout close above flag top (or intraday break with volume).
Stop
Below lower flag boundary or most recent higher low.
Target
Project flagpole height from breakout; conservative = flag height.
Bull Pennant - Bullish Continuation Pattern
Bullish
Classical
Continuation Pattern
Bull Pennant
Bull Pennant - Bullish Continuation Pattern
Bull Pennant
Bullish Continuation Pattern

Bull Pennant

Chart Pattern

Pattern Bias
Bullish
Pattern Type
Continuation
Consolidation
Yes
Typically Breaks
Up
Pattern Details

Bull Pennant Pattern Overview

Characteristics
Small contracting triangle after a sharp rally.
Description
An impulse leg higher, a corrective pause/flag, and a second leg mirroring the first in distance or proportion.
Reliability
Volume typically dries up into the apex and expands on the break.
Invalidation
Failure back into the pennant or breakdown below pennant base.

How To Trade Bull Pennant?

Entry
Close above the pennant's upper trendline.
Stop
Below the lower trendline or last higher low.
Target
Project pole height from breakout of pennant.
Bump-and-Run Reversal (Bearish) - Bearish Reversal Pattern
Bearish
Lesser-Known
Reversal Pattern
Bump-and-Run Reversal (Bearish)
Bump-and-Run Reversal (Bearish) - Bearish Reversal Pattern
Bump-and-Run Reversal (Bearish)
Bearish Reversal Pattern

Bump-and-Run Reversal (Bearish)

Chart Pattern

Pattern Bias
Bearish
Pattern Type
Reversal
Consolidation
No
Typically Breaks
Down
Pattern Details

Bump-and-Run Reversal (Bearish) Pattern Overview

Characteristics
Steep advance, exhaustion bump, then trendline break.
Description
An accelerating uptrend ends with a buying climax (bump), then price breaks the uptrend line and runs lower.
Reliability
Subjective; trendline break + retest failure improves odds.
Invalidation
Sustained reclaim above broken trendline.

How To Trade Bump-and-Run Reversal (Bearish)?

Entry
Close below uptrend line or on failed retest.
Stop
Above post-break retest high.
Target
Run back to lead-in trendline; further to prior congestion.
Bump-and-Run Reversal (Bullish) - Bullish Reversal Pattern
Bullish
Lesser-Known
Reversal Pattern
Bump-and-Run Reversal (Bullish)
Bump-and-Run Reversal (Bullish) - Bullish Reversal Pattern
Bump-and-Run Reversal (Bullish)
Bullish Reversal Pattern

Bump-and-Run Reversal (Bullish)

Chart Pattern

Pattern Bias
Bullish
Pattern Type
Reversal
Consolidation
No
Typically Breaks
Up
Pattern Details

Bump-and-Run Reversal (Bullish) Pattern Overview

Characteristics
Steep decline, exhaustion bump, then trendline break.
Description
An accelerating downtrend ends with a selling climax (bump), then price breaks the downtrend line and runs higher.
Reliability
Identification subjective; trendline break + retest improves odds.
Invalidation
Return below downtrend line with momentum.

How To Trade Bump-and-Run Reversal (Bullish)?

Entry
Close above downtrend line or on successful retest.
Stop
Below post-break retest low.
Target
Run back to lead-in trendline; extensions via prior congestion.
Cup and Handle - Bullish Continuation Pattern
Bullish
Classical
Continuation Pattern
Cup and Handle
Cup and Handle - Bullish Continuation Pattern
Cup and Handle
Bullish Continuation Pattern

Cup and Handle

Chart Pattern

Pattern Bias
Bullish
Pattern Type
Continuation
Consolidation
Prolonged
Typically Breaks
Up
Pattern Details

Cup and Handle Pattern Overview

Characteristics
Rounded base with shallow handle.
Description
A rounded U-shaped base that rebuilds sponsorship, followed by a short, light-volume pullback (handle) before a breakout over the rim.
Reliability
Best when handle is tight and forms in the upper half of the base.
Invalidation
Deep/loose handle (>15%), or failure back below rim after breakout.

How To Trade Cup and Handle?

Entry
Breakout over handle high (often with volume surge).
Stop
Below handle low or 20% of base depth (tight).
Target
Add cup depth (rim to bottom) to rim/handle-breakout.
Descending Broadening Wedge - Bullish Reversal Pattern
Bullish
Lesser-Known
Reversal Pattern
Descending Broadening Wedge
Descending Broadening Wedge - Bullish Reversal Pattern
Descending Broadening Wedge
Bullish Reversal Pattern

Descending Broadening Wedge

Chart Pattern

Pattern Bias
Bullish
Pattern Type
Reversal
Consolidation
No
Typically Breaks
Up or Down
Pattern Details

Descending Broadening Wedge Pattern Overview

Characteristics
Diverging falling trendlines.
Description
Price falls with expanding swings; often resolves higher but direction not assured.
Reliability
Similar to ascending variant; look for momentum shifts.
Invalidation
Reversal that re-enters wedge and breaks your trigger swing.

How To Trade Descending Broadening Wedge?

Entry
Edge fades or trade the break with confirmation.
Stop
Beyond opposite edge or recent swing.
Target
Project wedge height from break (direction-dependent).
Descending Channel - Bearish Continuation Pattern
Bearish
Classical
Continuation Pattern
Descending Channel
Descending Channel - Bearish Continuation Pattern
Descending Channel
Bearish Continuation Pattern

Descending Channel

Chart Pattern

Pattern Bias
Bearish
Pattern Type
Continuation
Consolidation
No
Typically Breaks
Up or Down
Pattern Details

Descending Channel Pattern Overview

Characteristics
Parallel falling trendlines.
Description
A downtrend contained between two parallel falling lines; rallies to the upper rail often fade.
Reliability
Mean-reverting within channel; trend risk if upper rail breaks.
Invalidation
Sustained break and hold above upper rail.

How To Trade Descending Channel?

Entry
Short near upper rail with reversal trigger or on breakdown below lower rail.
Stop
Above upper rail (for fade) or above breakdown bar high.
Target
Opposite boundary as near-term target; breakout = channel width projected.
Descending Triangle - Bearish Continuation Pattern
Bearish
Classical
Continuation Pattern
Descending Triangle
Descending Triangle - Bearish Continuation Pattern
Descending Triangle
Bearish Continuation Pattern

Descending Triangle

Chart Pattern

Pattern Bias
Bearish
Pattern Type
Continuation
Consolidation
Yes
Typically Breaks
Down
Pattern Details

Descending Triangle Pattern Overview

Characteristics
Flat support with falling highs.
Description
Sellers push lower highs into a flat support floor; a decisive break of the base typically extends the downtrend.
Reliability
Higher probability with multiple lower highs and expanding volume on break.
Invalidation
Reclaiming the base with strength and breaking the downtrend line.

How To Trade Descending Triangle?

Entry
Close below horizontal base or base-break retest failure.
Stop
Above most recent lower high or above base after failed retest.
Target
Subtract triangle height from breakdown level.
Diamond Bottom - Bullish Reversal Pattern
Bullish
Classical
Reversal Pattern
Diamond Bottom
Diamond Bottom - Bullish Reversal Pattern
Diamond Bottom
Bullish Reversal Pattern

Diamond Bottom

Chart Pattern

Pattern Bias
Bullish
Pattern Type
Reversal
Consolidation
Yes
Typically Breaks
Up
Pattern Details

Diamond Bottom Pattern Overview

Characteristics
Broadening then contracting.
Description
Volatility expands (broadens) then contracts into a diamond; an upside break often flips the trend.
Reliability
Whipsaws inside the pattern are common; wait for decisive break.
Invalidation
Break back into diamond with momentum.

How To Trade Diamond Bottom?

Entry
Close above upper right edge of diamond.
Stop
Below the last swing low inside/right after breakout.
Target
Add diamond height to breakout.
Diamond Top - Bearish Reversal Pattern
Bearish
Classical
Reversal Pattern
Diamond Top
Diamond Top - Bearish Reversal Pattern
Diamond Top
Bearish Reversal Pattern

Diamond Top

Chart Pattern

Pattern Bias
Bearish
Pattern Type
Reversal
Consolidation
Yes
Typically Breaks
Down
Pattern Details

Diamond Top Pattern Overview

Characteristics
Broadening then contracting.
Description
Volatility first expands then contracts into a diamond; breakdown often leads to swift declines.
Reliability
Whippy until resolution; wait for decisive break.
Invalidation
Break back into diamond with momentum.

How To Trade Diamond Top?

Entry
Close below lower right edge of diamond.
Stop
Above last swing high just before/after breakdown.
Target
Subtract diamond height from breakdown.
Double Bottom (Adam & Eve) - Bullish Reversal Pattern
Bullish
Lesser-Known
Reversal Pattern
Double Bottom (Adam & Eve)
Double Bottom (Adam & Eve) - Bullish Reversal Pattern
Double Bottom (Adam & Eve)
Bullish Reversal Pattern

Double Bottom (Adam & Eve)

Chart Pattern

Pattern Bias
Bullish
Pattern Type
Reversal
Consolidation
Yes
Typically Breaks
Up
Pattern Details

Double Bottom (Adam & Eve) Pattern Overview

Characteristics
Pointed first low (Adam), rounded second (Eve).
Description
A V-shaped first low followed by a wider, rounded second low; breakout above the middle peak confirms.
Reliability
Shape mix often traps shorts; still needs confirmation.
Invalidation
Slip back below breakout and loss of Eve's low.

How To Trade Double Bottom (Adam & Eve)?

Entry
Close above middle peak; retest entry acceptable.
Stop
Below Eve's low.
Target
Add pattern height (lowest low to peak between) to breakout.
Double Bottom (W) - Bullish Reversal Pattern
Bullish
Classical
Reversal Pattern
Double Bottom (W)
Double Bottom (W) - Bullish Reversal Pattern
Double Bottom (W)
Bullish Reversal Pattern

Double Bottom (W)

Chart Pattern

Pattern Bias
Bullish
Pattern Type
Reversal
Consolidation
Yes
Typically Breaks
Up
Pattern Details

Double Bottom (W) Pattern Overview

Characteristics
Two similar lows; confirm on peak-between breakout.
Description
Price makes two comparable lows separated by a rally; confirmation comes on a breakout above the intervening peak.
Reliability
Higher odds if second low undercuts slightly on lighter volume (bear trap).
Invalidation
Break back below the second low after breakout.

How To Trade Double Bottom (W)?

Entry
Close above the middle peak or retest of that level as support.
Stop
Below the second low.
Target
Add height from lows to middle peak to breakout.
Double Top (Adam & Eve) - Bearish Reversal Pattern
Bearish
Lesser-Known
Reversal Pattern
Double Top (Adam & Eve)
Double Top (Adam & Eve) - Bearish Reversal Pattern
Double Top (Adam & Eve)
Bearish Reversal Pattern

Double Top (Adam & Eve)

Chart Pattern

Pattern Bias
Bearish
Pattern Type
Reversal
Consolidation
Yes
Typically Breaks
Down
Pattern Details

Double Top (Adam & Eve) Pattern Overview

Characteristics
Pointed first high (Adam), rounded second (Eve).
Description
A sharp, pointed first peak followed by a wider, rounded second peak; breakdown through the middle trough confirms.
Reliability
Distinct peak shapes can trap longs; still requires confirmation.
Invalidation
Reclaim above Eve's high.

How To Trade Double Top (Adam & Eve)?

Entry
Close below the middle trough; add on throwback failure.
Stop
Above Eve's rounded high.
Target
Subtract pattern height from breakdown.
Double Top (M) - Bearish Reversal Pattern
Bearish
Classical
Reversal Pattern
Double Top (M)
Double Top (M) - Bearish Reversal Pattern
Double Top (M)
Bearish Reversal Pattern

Double Top (M)

Chart Pattern

Pattern Bias
Bearish
Pattern Type
Reversal
Consolidation
Yes
Typically Breaks
Down
Pattern Details

Double Top (M) Pattern Overview

Characteristics
Two similar highs; confirm on trough-between breakdown.
Description
Two comparable peaks separated by a pullback; confirmation comes on a break of the intervening low.
Reliability
Better if second high is weaker or shows bearish divergence.
Invalidation
Reclaim above the second peak after breakdown.

How To Trade Double Top (M)?

Entry
Close below the middle trough; add on throwback failure.
Stop
Above second peak.
Target
Subtract height from highs to intervening low from breakdown.
Falling Wedge (after Downtrend) - Bullish Reversal Pattern
Bullish
Classical
Reversal Pattern
Falling Wedge (after Downtrend)
Falling Wedge (after Downtrend) - Bullish Reversal Pattern
Falling Wedge (after Downtrend)
Bullish Reversal Pattern

Falling Wedge (after Downtrend)

Chart Pattern

Pattern Bias
Bullish
Pattern Type
Reversal
Consolidation
Yes
Typically Breaks
Up
Pattern Details

Falling Wedge (after Downtrend) Pattern Overview

Characteristics
Converging decline losing momentum.
Description
A narrowing, downward-sloping structure that indicates waning selling pressure; upside break flips trend.
Reliability
Improves with bullish divergence and drying volume.
Invalidation
Failure back into wedge or break of breakout retest low.

How To Trade Falling Wedge (after Downtrend)?

Entry
Close above upper wedge line or retest entry.
Stop
Below recent swing low.
Target
Return to wedge start or add wedge height from breakout.
Falling Wedge (in Uptrend) - Bullish Continuation Pattern
Bullish
Classical
Continuation Pattern
Falling Wedge (in Uptrend)
Falling Wedge (in Uptrend) - Bullish Continuation Pattern
Falling Wedge (in Uptrend)
Bullish Continuation Pattern

Falling Wedge (in Uptrend)

Chart Pattern

Pattern Bias
Bullish
Pattern Type
Continuation
Consolidation
Yes
Typically Breaks
Up
Pattern Details

Falling Wedge (in Uptrend) Pattern Overview

Characteristics
Converging pullback against trend.
Description
Price pulls back in a narrowing, downward-sloping range as momentum wanes against the dominant uptrend; upside break resumes trend.
Reliability
Higher odds with diminishing volume and bullish momentum divergence.
Invalidation
Failure back into wedge or making a lower low beyond wedge start.

How To Trade Falling Wedge (in Uptrend)?

Entry
Close above upper wedge line or breakout + retest entry.
Stop
Below recent swing low or below lower wedge line.
Target
Measure back to start of wedge or add wedge height at breakout.
Head & Shoulders - Bearish Reversal Pattern
Bearish
Classical
Reversal Pattern
Head & Shoulders
Head & Shoulders - Bearish Reversal Pattern
Head & Shoulders
Bearish Reversal Pattern

Head & Shoulders

Chart Pattern

Pattern Bias
Bearish
Pattern Type
Reversal
Consolidation
Yes
Typically Breaks
Down
Pattern Details

Head & Shoulders Pattern Overview

Characteristics
Three-highs structure; neckline break confirms.
Description
Left shoulder high, higher head, right shoulder lower high; breakdown through neckline signals reversal.
Reliability
More reliable with volume expansion on breakdown and weak right shoulder.
Invalidation
Reclaiming neckline and taking out right-shoulder high.

How To Trade Head & Shoulders?

Entry
Close below neckline; add on retest failure.
Stop
Above right-shoulder high.
Target
Subtract head-to-neckline distance from breakdown level.
Head & Shoulders (Complex) - Bearish Reversal Pattern
Bearish
Lesser-Known
Reversal Pattern
Head & Shoulders (Complex)
Head & Shoulders (Complex) - Bearish Reversal Pattern
Head & Shoulders (Complex)
Bearish Reversal Pattern

Head & Shoulders (Complex)

Chart Pattern

Pattern Bias
Bearish
Pattern Type
Reversal
Consolidation
Prolonged
Typically Breaks
Down
Pattern Details

Head & Shoulders (Complex) Pattern Overview

Characteristics
Multiple shoulders / uneven structure.
Description
A more irregular topping pattern with extra shoulders; the same neckline principle applies.
Reliability
Choppy; demand decisive neckline break to reduce whipsaws.
Invalidation
Sustained reclaim above neckline and right-side highs.

How To Trade Head & Shoulders (Complex)?

Entry
Close below neckline; entries on failed retest.
Stop
Above highest right-side shoulder.
Target
Subtract head-to-neckline distance from breakdown.
Inverse Cup and Handle - Bearish Continuation Pattern
Bearish
Classical
Continuation Pattern
Inverse Cup and Handle
Inverse Cup and Handle - Bearish Continuation Pattern
Inverse Cup and Handle
Bearish Continuation Pattern

Inverse Cup and Handle

Chart Pattern

Pattern Bias
Bearish
Pattern Type
Continuation
Consolidation
Prolonged
Typically Breaks
Down
Pattern Details

Inverse Cup and Handle Pattern Overview

Characteristics
Mirror of cup-with-handle; rounded top then brief, weak right-side handle.
Description
Rounded “inverted cup” forms during a downtrend pause; a tight handle develops and a breakdown through the rim/handle continues the decline.
Reliability
Best with contracting volume in handle and expansion on breakdown.
Invalidation
Strong reclaim above rim/handle with a higher high.

How To Trade Inverse Cup and Handle?

Entry
Close below handle low/rim or on failed retest.
Stop
Above handle high or right-side swing high.
Target
Subtract cup depth from breakdown; conservative = handle height.
Inverse Head & Shoulders - Bullish Reversal Pattern
Bullish
Classical
Reversal Pattern
Inverse Head & Shoulders
Inverse Head & Shoulders - Bullish Reversal Pattern
Inverse Head & Shoulders
Bullish Reversal Pattern

Inverse Head & Shoulders

Chart Pattern

Pattern Bias
Bullish
Pattern Type
Reversal
Consolidation
Yes
Typically Breaks
Up
Pattern Details

Inverse Head & Shoulders Pattern Overview

Characteristics
Three-lows structure; neckline break confirms.
Description
Left shoulder low, deeper head low, and right shoulder higher low; breakout occurs on a push through the neckline.
Reliability
Improves with decreasing volume into head and expansion on breakout.
Invalidation
Close back below neckline and loss of right-shoulder low.

How To Trade Inverse Head & Shoulders?

Entry
Close above neckline or retest/flip of neckline to support.
Stop
Below right-shoulder low.
Target
Add distance from head to neckline to breakout; alt: retest then project.
Inverse Head & Shoulders (Complex) - Bullish Reversal Pattern
Bullish
Lesser-Known
Reversal Pattern
Inverse Head & Shoulders (Complex)
Inverse Head & Shoulders (Complex) - Bullish Reversal Pattern
Inverse Head & Shoulders (Complex)
Bullish Reversal Pattern

Inverse Head & Shoulders (Complex)

Chart Pattern

Pattern Bias
Bullish
Pattern Type
Reversal
Consolidation
Prolonged
Typically Breaks
Up
Pattern Details

Inverse Head & Shoulders (Complex) Pattern Overview

Characteristics
Multiple shoulders / uneven structure.
Description
A messier H&S bottom with extra shoulders or uneven symmetry but the same principle of a neckline break confirming reversal.
Reliability
Patience required; clarity on neckline is key.
Invalidation
Sustained failure back under neckline and breaking right-side structure.

How To Trade Inverse Head & Shoulders (Complex)?

Entry
Close above neckline; add on successful retest.
Stop
Below lowest right-side shoulder.
Target
Head-to-neckline distance added to breakout.
Island Reversal (Bearish) - Bearish Reversal Pattern
Bearish
Lesser-Known
Reversal Pattern
Island Reversal (Bearish)
Island Reversal (Bearish) - Bearish Reversal Pattern
Island Reversal (Bearish)
Bearish Reversal Pattern

Island Reversal (Bearish)

Chart Pattern

Pattern Bias
Bearish
Pattern Type
Reversal
Consolidation
Brief
Typically Breaks
Down
Pattern Details

Island Reversal (Bearish) Pattern Overview

Characteristics
Gap up then gap down, isolating highs.
Description
A cluster of bars isolated by gaps; final gap down flips trend and can trigger fast declines.
Reliability
Gap integrity is key; fast failures if gaps fill.
Invalidation
Fill of the reversal gap and close back into island.

How To Trade Island Reversal (Bearish)?

Entry
Short on gap down that strands island or on first rally that fails below the gap.
Stop
Above the gap high.
Target
Retrace to prior range; nearby supports for targets.
Island Reversal (Bullish) - Bullish Reversal Pattern
Bullish
Lesser-Known
Reversal Pattern
Island Reversal (Bullish)
Island Reversal (Bullish) - Bullish Reversal Pattern
Island Reversal (Bullish)
Bullish Reversal Pattern

Island Reversal (Bullish)

Chart Pattern

Pattern Bias
Bullish
Pattern Type
Reversal
Consolidation
Brief
Typically Breaks
Up
Pattern Details

Island Reversal (Bullish) Pattern Overview

Characteristics
Gap down then gap up, isolating lows.
Description
A cluster of price bars isolated by gaps on both sides; the final gap reverses direction and often triggers a swift move.
Reliability
Relies on gap integrity; quick failures if gaps fill.
Invalidation
Filling the reversal gap and closing back inside the island.

How To Trade Island Reversal (Bullish)?

Entry
Buy on gap up that leaves island behind or on first pullback that holds the gap.
Stop
Below the gap low.
Target
Retrace back into prior range; nearby resistance for targets.
Measured Move Down - Bearish Continuation Pattern
Bearish
Classical
Continuation Pattern
Measured Move Down
Measured Move Down - Bearish Continuation Pattern
Measured Move Down
Bearish Continuation Pattern

Measured Move Down

Chart Pattern

Pattern Bias
Bearish
Pattern Type
Continuation
Consolidation
Sometimes
Typically Breaks
Down
Pattern Details

Measured Move Down Pattern Overview

Characteristics
Two declines separated by a pause.
Description
An impulse leg lower, a corrective pause/range, and a second decline mirroring the first in distance or proportion.
Reliability
Works best in steady downtrends; watch for capitulation near target.
Invalidation
Failure to make new lows or reclaim of the pause high.

How To Trade Measured Move Down?

Entry
Breakdown from the mid-pattern pause/flag/triangle.
Stop
Above the pause high or structure that launched leg 2 lower.
Target
Leg 2 ≈ Leg 1 distance from pause breakdown.
Measured Move Up - Bullish Continuation Pattern
Bullish
Classical
Continuation Pattern
Measured Move Up
Measured Move Up - Bullish Continuation Pattern
Measured Move Up
Bullish Continuation Pattern

Measured Move Up

Chart Pattern

Pattern Bias
Bullish
Pattern Type
Continuation
Consolidation
Sometimes
Typically Breaks
Up
Pattern Details

Measured Move Up Pattern Overview

Characteristics
Two rallies separated by a pause.
Description
An impulse leg higher, a corrective pause/flag, and a second leg mirroring the first in distance or proportion.
Reliability
Works best in persistent trends; momentum often fades near target.
Invalidation
Failure to exceed leg-1 high or breakdown through pause low.

How To Trade Measured Move Up?

Entry
Breakout from the mid-pattern pause/flag/triangle.
Stop
Below the pause low or structure that launched leg 2.
Target
Leg 2 ≈ Leg 1 distance from pause breakout.
Parabolic Blow-Off Top - Bearish Reversal Pattern
Bearish
Lesser-Known
Reversal Pattern
Parabolic Blow-Off Top
Parabolic Blow-Off Top - Bearish Reversal Pattern
Parabolic Blow-Off Top
Bearish Reversal Pattern

Parabolic Blow-Off Top

Chart Pattern

Pattern Bias
Bearish
Pattern Type
Reversal
Consolidation
No
Typically Breaks
Down
Pattern Details

Parabolic Blow-Off Top Pattern Overview

Characteristics
Climactic advance then sharp reversal.
Description
A near-vertical, accelerating rise ending with a volume/volatility spike; abrupt reversal usually follows.
Reliability
Extreme volatility; risk controls crucial.
Invalidation
Reclaim of blow-off high and resumption of parabolic advance.

How To Trade Parabolic Blow-Off Top?

Entry
Short on failure of the vertical ramp (lower high) or breakdown through first significant low.
Stop
Above the blow-off high or lower-high pivot.
Target
Initial target = prior base/last consolidation; trailing preferred.
Parabolic Capitulation Bottom - Bullish Reversal Pattern
Bullish
Lesser-Known
Reversal Pattern
Parabolic Capitulation Bottom
Parabolic Capitulation Bottom - Bullish Reversal Pattern
Parabolic Capitulation Bottom
Bullish Reversal Pattern

Parabolic Capitulation Bottom

Chart Pattern

Pattern Bias
Bullish
Pattern Type
Reversal
Consolidation
No
Typically Breaks
Up
Pattern Details

Parabolic Capitulation Bottom Pattern Overview

Characteristics
Climactic sell-off then sharp reversal; mirror of blow-off top.
Description
Near-vertical decline ends in capitulation; swift rebound and momentum shift kick off a new up leg.
Reliability
Extreme volatility; confirm with breadth/volume; manage risk tightly.
Invalidation
Close back below the capitulation low and resumption of the slide.

How To Trade Parabolic Capitulation Bottom?

Entry
Breakout through first significant swing high or higher-low trigger.
Stop
Below capitulation low or higher-low pivot.
Target
Initial target = prior breakdown base/last consolidation; trailing preferred.
Rectangle / Trading Range - Neutral Indeterminate Pattern
Neutral
Classical
Indeterminate Pattern
Rectangle / Trading Range
Rectangle / Trading Range - Neutral Indeterminate Pattern
Rectangle / Trading Range
Neutral Indeterminate Pattern

Rectangle / Trading Range

Chart Pattern

Pattern Bias
Neutral
Pattern Type
Indeterminate
Consolidation
Yes
Typically Breaks
Up or Down
Pattern Details

Rectangle / Trading Range Pattern Overview

Characteristics
Horizontal support / resistance.
Description
A sideways band between parallel support/resistance; break sets the next directional leg.
Reliability
Fakeouts common; require close and expansion in range/volume.
Invalidation
Failure back into the range after breakout with momentum.

How To Trade Rectangle / Trading Range?

Entry
Breakout / breakdown close; fade edges with mean-reversion setups.
Stop
Beyond the opposite side of the range or beyond failed breakout bar.
Target
Add / subtract range height from breakout / breakdown.
Rising Wedge (after Uptrend) - Bearish Reversal Pattern
Bearish
Classical
Reversal Pattern
Rising Wedge (after Uptrend)
Rising Wedge (after Uptrend) - Bearish Reversal Pattern
Rising Wedge (after Uptrend)
Bearish Reversal Pattern

Rising Wedge (after Uptrend)

Chart Pattern

Pattern Bias
Bearish
Pattern Type
Reversal
Consolidation
Yes
Typically Breaks
Down
Pattern Details

Rising Wedge (after Uptrend) Pattern Overview

Characteristics
Converging advance losing momentum.
Description
Price advances within narrowing, upward-sloping lines; momentum fades and breakdown often flips trend.
Reliability
Bearish divergences and light volume into apex strengthen odds.
Invalidation
Sustained reclaim above upper wedge line.

How To Trade Rising Wedge (after Uptrend)?

Entry
Close below lower wedge line or on retest failure.
Stop
Above last swing high or above upper wedge line.
Target
Move back to wedge start or subtract wedge height from breakdown.
Rising Wedge (in Downtrend) - Bearish Continuation Pattern
Bearish
Classical
Continuation Pattern
Rising Wedge (in Downtrend)
Rising Wedge (in Downtrend) - Bearish Continuation Pattern
Rising Wedge (in Downtrend)
Bearish Continuation Pattern

Rising Wedge (in Downtrend)

Chart Pattern

Pattern Bias
Bearish
Pattern Type
Continuation
Consolidation
Yes
Typically Breaks
Down
Pattern Details

Rising Wedge (in Downtrend) Pattern Overview

Characteristics
Converging counter-trend bounce.
Description
Price rises within narrowing, upward-sloping lines during a broader downtrend; momentum fades before breakdown.
Reliability
Throwbacks common; divergences often precede breakdown.
Invalidation
Reclaiming and holding above upper wedge line.

How To Trade Rising Wedge (in Downtrend)?

Entry
Close below lower wedge line.
Stop
Above last swing high or above upper wedge line.
Target
Measure back to wedge origin or subtract wedge height from breakdown.
Rounding Bottom (Saucer) - Bullish Reversal Pattern
Bullish
Lesser-Known
Reversal Pattern
Rounding Bottom (Saucer)
Rounding Bottom (Saucer) - Bullish Reversal Pattern
Rounding Bottom (Saucer)
Bullish Reversal Pattern

Rounding Bottom (Saucer)

Chart Pattern

Pattern Bias
Bullish
Pattern Type
Reversal
Consolidation
Prolonged
Typically Breaks
Up
Pattern Details

Rounding Bottom (Saucer) Pattern Overview

Characteristics
Gradual accumulation.
Description
A long, gentle U-shape representing a shift from distribution to accumulation; breakout typically leads to sustained trend.
Reliability
Slow to form; stronger in quality names / indices.
Invalidation
Close back below rim and failure of higher-low structure.

How To Trade Rounding Bottom (Saucer)?

Entry
Breakout over rim highs or on early higher-low with confirmation.
Stop
Below last higher low within right side of base.
Target
Add base depth to breakout (rim).
Rounding Top - Bearish Reversal Pattern
Bearish
Lesser-Known
Reversal Pattern
Rounding Top
Rounding Top - Bearish Reversal Pattern
Rounding Top
Bearish Reversal Pattern

Rounding Top

Chart Pattern

Pattern Bias
Bearish
Pattern Type
Reversal
Consolidation
Prolonged
Typically Breaks
Down
Pattern Details

Rounding Top Pattern Overview

Characteristics
Gradual distribution.
Description
A gentle inverted U-shape reflecting distribution; breakdown can accelerate once support gives way.
Reliability
Long development; confirmation improves reliability.
Invalidation
Reclaim of base and higher-highs sequence.

How To Trade Rounding Top?

Entry
Close below the base support or after a failed retest.
Stop
Above the most recent lower high on the right side.
Target
Subtract base depth from breakdown.
Symmetrical Triangle / Equilibrium - Neutral Indeterminate Pattern
Neutral
Classical
Indeterminate Pattern
Symmetrical Triangle / Equilibrium
Symmetrical Triangle / Equilibrium - Neutral Indeterminate Pattern
Symmetrical Triangle / Equilibrium
Neutral Indeterminate Pattern

Symmetrical Triangle / Equilibrium

Chart Pattern

Pattern Bias
Neutral
Pattern Type
Indeterminate
Consolidation
Yes
Typically Breaks
Up or Down
Pattern Details

Symmetrical Triangle / Equilibrium Pattern Overview

Characteristics
Lower highs & higher lows; pressure builds.
Description
Converging trendlines compress price; breakout direction is uncertain but often follows the prior trend.
Reliability
Later-stage breaks near apex can be weaker; watch volume.
Invalidation
Return inside triangle after breakout with loss of retest low / high.

How To Trade Symmetrical Triangle / Equilibrium?

Entry
Break + close beyond a trendline; add on retest.
Stop
Beyond opposite trendline or prior swing.
Target
Project height of widest part from breakout.
Triple Bottom - Bullish Reversal Pattern
Bullish
Classical
Reversal Pattern
Triple Bottom
Triple Bottom - Bullish Reversal Pattern
Triple Bottom
Bullish Reversal Pattern

Triple Bottom

Chart Pattern

Pattern Bias
Bullish
Pattern Type
Reversal
Consolidation
Yes
Typically Breaks
Up
Pattern Details

Triple Bottom Pattern Overview

Characteristics
Three similar lows.
Description
Three comparable swing lows forming a broad base; breakout above intervening highs confirms reversal.
Reliability
Rarer; ensure decisive breakout to avoid range continuation.
Invalidation
Failure back into range and loss of recent higher low.

How To Trade Triple Bottom?

Entry
Close above resistance formed by intervening highs.
Stop
Below the third low (or average of lows).
Target
Add base height to breakout above resistance.
Triple Top - Bearish Reversal Pattern
Bearish
Classical
Reversal Pattern
Triple Top
Triple Top - Bearish Reversal Pattern
Triple Top
Bearish Reversal Pattern

Triple Top

Chart Pattern

Pattern Bias
Bearish
Pattern Type
Reversal
Consolidation
Yes
Typically Breaks
Down
Pattern Details

Triple Top Pattern Overview

Characteristics
Three similar highs.
Description
Three attempts to break resistance fail; breakdown below intervening lows confirms.
Reliability
Rarer; ensure strong breakdown to avoid range continuation.
Invalidation
Reclaim of support and breakout above peaks.

How To Trade Triple Top?

Entry
Close below support formed by intervening lows.
Stop
Above the third peak.
Target
Subtract base height from breakdown below support.
Wyckoff Accumulation - Bullish Reversal Pattern
Bullish
Lesser-Known
Reversal Pattern
Wyckoff Accumulation
Wyckoff Accumulation - Bullish Reversal Pattern
Wyckoff Accumulation
Bullish Reversal Pattern

Wyckoff Accumulation

Chart Pattern

Pattern Bias
Bullish
Pattern Type
Reversal
Consolidation
Prolonged
Typically Breaks
Up
Pattern Details

Wyckoff Accumulation Pattern Overview

Characteristics
Phased base after a downtrend; may “spring” under support then recover.
Description
Range builds through SC/AR/ST; optional spring undercuts support and snaps back; SOS and LPS confirm markup.
Reliability
Best with contracting volume in base and expansion on SOS; spring not required.
Invalidation
Failure back into range with loss of LPS/spring low.

How To Trade Wyckoff Accumulation?

Entry
Breakout over resistance (SOS) or LPS retest that holds.
Stop
Below LPS or spring low.
Target
Project range height from breakout; use prior congestion for extensions.
Wyckoff Distribution - Bearish Reversal Pattern
Bearish
Lesser-Known
Reversal Pattern
Wyckoff Distribution
Wyckoff Distribution - Bearish Reversal Pattern
Wyckoff Distribution
Bearish Reversal Pattern

Wyckoff Distribution

Chart Pattern

Pattern Bias
Bearish
Pattern Type
Reversal
Consolidation
Prolonged
Typically Breaks
Down
Pattern Details

Wyckoff Distribution Pattern Overview

Characteristics
Phased top after an uptrend; upthrusts (UT/UTAD) above resistance often fail.
Description
Range forms via BC/AR/ST; UT/UTAD traps longs; SOW and LPSY confirm markdown.
Reliability
Better with drying volume on rallies and expansion on SOW/break.
Invalidation
Reclaim and hold above resistance/UTAD high.

How To Trade Wyckoff Distribution?

Entry
Breakdown through support (SOW) or LPSY failure below resistance.
Stop
Above LPSY or UT/UTAD high.
Target
Subtract range height from breakdown; aim to prior base.
Wyckoff Re-Accumulation - Bullish Continuation Pattern
Bullish
Lesser-Known
Continuation Pattern
Wyckoff Re-Accumulation
Wyckoff Re-Accumulation - Bullish Continuation Pattern
Wyckoff Re-Accumulation
Bullish Continuation Pattern

Wyckoff Re-Accumulation

Chart Pattern

Pattern Bias
Bullish
Pattern Type
Continuation
Consolidation
Prolonged
Typically Breaks
Up
Pattern Details

Wyckoff Re-Accumulation Pattern Overview

Characteristics
Mid-trend base in an uptrend; may include a brief spring/shakeout.
Description
After markup, price builds a range with contracting volume; a Sign of Strength (SOS) and Last Point of Support (LPS) confirm continuation.
Reliability
Improves with tighter pullbacks and volume expansion on SOS.
Invalidation
Failure back into range with loss of LPS/spring.

How To Trade Wyckoff Re-Accumulation?

Entry
Breakout over resistance (SOS) or LPS retest that holds.
Stop
Below LPS or spring low.
Target
Project range height from breakout; extend with prior leg symmetry.
Wyckoff Re-Distribution - Bearish Continuation Pattern
Bearish
Lesser-Known
Continuation Pattern
Wyckoff Re-Distribution
Wyckoff Re-Distribution - Bearish Continuation Pattern
Wyckoff Re-Distribution
Bearish Continuation Pattern

Wyckoff Re-Distribution

Chart Pattern

Pattern Bias
Bearish
Pattern Type
Continuation
Consolidation
Prolonged
Typically Breaks
Down
Pattern Details

Wyckoff Re-Distribution Pattern Overview

Characteristics
Mid-trend range in a downtrend; upthrusts above resistance tend to fail.
Description
After markdown, price forms a range; Sign of Weakness (SOW) and Last Point of Supply (LPSY) rallies fail, leading to continuation.
Reliability
Strongest with drying volume on rallies and expansion on SOW/break.
Invalidation
Reclaim and hold above range resistance/UT high.

How To Trade Wyckoff Re-Distribution?

Entry
Breakdown through support (SOW) or LPSY failure below resistance.
Stop
Above LPSY or UT/UTAD high.
Target
Subtract range height from breakdown; aim to prior base or leg symmetry.
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