Chart Patterns

Two peaks at roughly the same high with a valley between — a bearish reversal that confirms when price breaks the neckline drawn under the middle trough.

When to use: Spotting a topping market: two failed pushes to the same ceiling, then a break of the swing low between them.

Two troughs at roughly the same low with a peak between — a bullish reversal that confirms when price breaks the neckline drawn over the middle peak.

When to use: Spotting a bottoming market: two failed pushes to the same floor, then a break of the swing high between them.

Price oscillates between a flat support floor and a flat resistance ceiling, building a horizontal range that resolves with a break of either edge.

When to use: Range / consolidation trading, or waiting for the range to break to take the move that follows.

A left shoulder, a higher head, then a lower right shoulder, all sitting on a neckline — the classic bearish reversal, confirmed on a neckline break.

When to use: Calling the end of an uptrend; the right-shoulder failure plus neckline break is the entry.

An inverse head and shoulders — left shoulder, deeper head, higher right shoulder under a neckline — a bullish reversal confirmed when price breaks up through the neckline.

When to use: Calling the end of a downtrend; the right-shoulder higher low plus neckline break is the entry.

Three peaks at roughly the same high separated by two troughs — a stronger bearish reversal than a double top, confirmed on a break below the shared support.

When to use: When price has failed three times at the same ceiling and you want the downside break.

Three troughs at roughly the same low separated by two peaks — a stronger bullish reversal than a double bottom, confirmed on a break above the shared resistance.

When to use: When price has held three times at the same floor and you want the upside break.

A sharp, near-vertical rally that tops in a single spike and reverses just as fast — a fast bearish reversal with no rounding or retest.

When to use: Catching a blow-off top: a parabolic push that snaps back hard the same or next bar.

A sharp, near-vertical sell-off that bottoms in a single spike and reverses just as fast — a fast bullish reversal with no rounding or retest.

When to use: Catching a capitulation low: a panic flush that snaps back up the same or next bar.

A gentle lead-in trend (the lead-in line) is followed by a steep, overextended 'bump', then price breaks back below the lead-in trendline and runs the other way.

When to use: Spotting an unsustainable acceleration that gives back the excess once the lead-in line breaks.

A flat resistance ceiling with a rising support line of higher lows — usually a bullish continuation that resolves with a break above the ceiling.

When to use: Continuation longs: higher lows pressing into a fixed ceiling that eventually gives way.

A flat support floor with a falling resistance line of lower highs — usually a bearish continuation that resolves with a break below the floor.

When to use: Continuation shorts: lower highs pressing into a fixed floor that eventually breaks.

Lower highs and higher lows converge into an apex — a neutral coiling pattern that breaks in the direction of the eventual escape, often the prior trend.

When to use: Volatility-squeeze continuation: trade the break of whichever converging line gives way first.

Price climbs between two parallel up-sloping lines — a rising channel; trend continuation while it holds, reversal warning if the lower rail breaks.

When to use: Trading a clean uptrend: buy the lower rail, watch for a break of it as the trend-change tell.

Price falls between two parallel down-sloping lines — a falling channel; trend continuation while it holds, reversal warning if the upper rail breaks.

When to use: Trading a clean downtrend: sell the upper rail, watch for a break of it as the trend-change tell.

Price ranges sideways between two flat parallel rails — a horizontal channel that trades like a rectangle until one rail breaks.

When to use: Sideways markets: fade the rails or wait for the rail break that starts the next trend.

Both rails slope up but converge, with the lower rail steeper — a tiring rally that usually resolves bearish on a break of the lower line.

When to use: Spotting an exhausting uptrend: a wedge that narrows upward and tends to break down.

Both rails slope down but converge, with the upper rail steeper — a tiring sell-off that usually resolves bullish on a break of the upper line.

When to use: Spotting an exhausting downtrend: a wedge that narrows downward and tends to break up.

A megaphone of higher highs and lower lows widening over time, formed near a high — rising volatility and instability that often resolves bearish.

When to use: Reading a choppy, expanding top where swings get wider instead of tighter.

A megaphone of higher highs and lower lows widening over time, formed near a low — expanding volatility that often resolves bullish out of the base.

When to use: Reading a choppy, expanding bottom where swings get wider before a resolution higher.

A steep rally (the flagpole) followed by a small down-sloping consolidation channel — a bullish continuation that breaks up out of the flag.

When to use: Continuation longs after a strong impulse: buy the break out of the pullback channel.

A steep drop (the flagpole) followed by a small up-sloping consolidation channel — a bearish continuation that breaks down out of the flag.

When to use: Continuation shorts after a strong impulse down: sell the break out of the bounce channel.

A sharp move followed by a small symmetrical-triangle pause that converges to a point — a brief continuation that breaks in the direction of the prior impulse.

When to use: Continuation after a fast move: trade the break of the little coil in the trend's direction.

Price arcs over in a slow, smooth dome — a gradual bearish reversal where the uptrend rolls over into a downtrend without a sharp pivot.

When to use: Reading a slow distribution top where momentum quietly fades and rolls down.

Price arcs through a slow, smooth saucer — a gradual bullish reversal where the downtrend rounds out into an uptrend without a sharp pivot.

When to use: Reading a slow accumulation base where selling quietly dries up and turns up.

A rounded saucer (the cup) followed by a small downward drift (the handle) just under the rim — a bullish continuation that breaks out above the rim.

When to use: Continuation longs from a long base: buy the breakout over the rim after the handle pulls back.

A rounded dome (the inverted cup) followed by a small upward drift (the handle) just above the rim — a bearish continuation that breaks down below the rim.

When to use: Continuation shorts from a topping dome: sell the breakdown under the rim after the handle bounces.

Swings first broaden then contract, tracing a diamond near a high — a bearish reversal that confirms on a break of the lower converging line.

When to use: Reading a top that flares out into a megaphone then coils back in before rolling over.

Swings first broaden then contract, tracing a diamond near a low — a bullish reversal that confirms on a break of the upper converging line.

When to use: Reading a base that flares out into a megaphone then coils back in before turning up.

Two roughly equal up-legs joined by a corrective pullback — the first leg projects the size of the second, so the move 'measures' its own target.

When to use: Projecting an upside target: the AB leg up, a BC pullback, then a CD leg that mirrors AB.

Two roughly equal down-legs joined by a corrective bounce — the first leg projects the size of the second, so the move 'measures' its own downside target.

When to use: Projecting a downside target: the AB leg down, a BC bounce, then a CD leg that mirrors AB.

A break counts only once price clears the pattern boundary by breakout_threshold expressed as a percent of price — a scale-free filter that behaves the same on a $1 stock and a $2,000 index.

When to use: The portable default: when you want the same breakout buffer to mean the same thing across symbols of very different price.

A break counts only once price clears the pattern boundary by breakout_threshold multiples of ATR — the buffer auto-widens in volatile conditions and tightens in calm ones.

When to use: When you want the breakout filter to adapt to current volatility instead of a fixed percent, so noisy markets need a bigger push to confirm.

The projected target uses Bulkowski's statistically measured fraction of the pattern height — typically less than the full height, because most patterns historically fall short of the textbook 1:1 projection.

When to use: The realistic default: when you want price targets sized to how far these patterns actually tend to run, not the ideal full measure.

The projected target uses the entire pattern height measured 1:1 from the breakout point — the classic textbook objective, which is more ambitious than the Bulkowski partial.

When to use: When you want the traditional full-height target, accepting that price reaches it less often than the partial measure.