Key Chart Patterns
Recognizing chart patterns helps traders anticipate price movements and identify potential breakout opportunities.
Double Top
A bearish reversal pattern that occurs after an uptrend when the price reaches a high, retraces, and then fails to break above the previous high before reversing downward.
Confirmation: A break below the neckline (support level between the two peaks).
Double Bottom
A bullish reversal pattern that occurs after a downtrend when the price reaches a low, retraces, and then retests the low before reversing upward.
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Confirmation: A break above the resistance level (neckline) between the two bottoms.
Triple Top
A stronger bearish reversal pattern where the price reaches resistance three times before declining.
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Confirmation: A break below the support level below the three peaks.
Triple Bottom
A bullish reversal pattern that forms when price tests support three times before breaking higher.
Confirmation: A break above the resistance level above the three troughs.
Bull Flag
A continuation pattern where price surges upwards, consolidates in a downward-sloping channel, and then breaks upward again.
Confirmation: A breakout above the flag’s upper resistance line.
Bear Flag
A continuation pattern where price drops sharply, consolidates in an upward-sloping channel, and then continues downward.
Confirmation: A break below the flag’s lower support line.
Head & Shoulders
A bearish reversal pattern that signals the end of an uptrend. It consists of three peaks, with the middle one (the head) being the highest, flanked by two lower shoulders.
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Confirmation: A break below the neckline.
Inverse Head & Shoulders
A bullish reversal pattern that signals the end of a downtrend. It consists of three troughs, with the middle one (the head) being the lowest, flanked by two higher shoulders.
Confirmation: A break above the neckline.
Cup & handle
The Cup and Handle is a bullish continuation pattern that resembles a rounded "U" shape (the cup) followed by a smaller consolidation (the handle). It typically forms after an uptrend and signals the potential for a breakout and continuation higher.​
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Confirmation: A breakout above the handle's resistance confirms the pattern and is often accompanied by rising volume, suggesting a strong move upward.
Inverse cup & handle
The Inverse Cup and Handle is the bearish counterpart of the classic pattern. It appears after a downtrend and resembles an upside-down “U” followed by a short upward retracement (the handle).
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Confirmation: A break below the handle’s support, it typically confirms the pattern and signals a potential continuation of the downtrend.