● F ormation:This pattern forms during an uptrend and consists of two peaks (the "tops") that reach a similar high, separated by a pullback between them, creating a resistance level. The price fails to break above the previous high. ● Signal: It suggests a potential reversal of the uptrend, indicating that buyers are losing strength. Traders might anticipate a downtrend when the price breaks below the support level formed between the two tops.
2. Bearish Head and Shoulders:
● F ormation:This pattern shows three peaks, where the middle peak (the "head") is higher than the other two peaks (the "shoulders"). The two shoulders are roughly at the same level and are connected by a lower low (the "neckline"). ● Signal:It indicates a potential trend reversal from bullish to bearish. A breakdown below the neckline often confirms the pattern and may signal further downward movement.
3. Bearish Rising Wedge:
● F ormation:It occurs during an uptrend and resembles a pattern where the price forms higher highs and higher lows, but within a narrowing price range. The upper resistance line slants upwards, while the support line also slopes upwards. ● Signal:This pattern suggests a potential trend reversal towards a downtrend. A breakdown below the lower trendline might signal a continuation of the downtrend.
4. Bearish Expanding Triangle:
● F ormation:This triangle pattern widens over time and typically forms during a downtrend. It's characterized by increasingly higher highs and lower lows, creating a triangle shape where the upper trendline slopes downward, and the lower trendline slopes upward. ● Signal:It signifies increased volatility and potential bearish reversal. A breakdown below the lower trendline confirms the pattern, suggesting a continuation of the downtrend.
5. Bearish Triple Top:
● F ormation:Similar to the double top but with three peaks formed at approximately the same price level, indicating strong resistance. Each peak fails to break above the resistance level. ● Signal:It suggests a potential reversal of an uptrend, reflecting significant selling pressure and a lack of upward momentum. Traders might anticipate a downtrend when the price breaks below the support level formed between the three tops.
6. Bullish Double Bottom:
● F ormation:This pattern occurs during a downtrend and consists of two troughs (the "bottoms") at approximately the same level, separated by a peak in between. ● Signal: It suggests a potential reversal from a downtrend to an uptrend. Traders might anticipate an uptrend when the price breaks above the resistance level formed between the two bottoms.
7. Bullish Inverted Head and Shoulders:
● F ormation:This pattern is the inverse of the bearish head and shoulders. It consists of three troughs, where the middle trough (the "head") is lower than the other two (the "shoulders"). The two shoulders are roughly at the same level and are connected by a higher high (the "neckline"). ● S ignal:It indicates a potential reversal from a downtrend to an uptrend. A breakout above the neckline often confirms the pattern and may signal further upward movement.
8. Bullish Falling Wedge:
● F ormation: It occurs during a downtrend and resembles a pattern where the price forms lower lows and lower highs, but within a narrowing price range. The upper resistance line slants downward, while the support line also slopes downward. ● Signal:This pattern suggests a potential trend reversal towards an uptrend. A breakout above the upper trendline might signal a continuation of the uptrend.
9. Bullish Expanding Triangle:
● F ormation:This triangle pattern widens over time and typically forms during an uptrend. It's characterized by increasingly lower lows and higher highs, creating a triangle shape where the upper trendline slopes upward, and the lower trendline slopes downward. ● Signal:It signifies increased volatility and potential bullish reversal. A breakout above the upper trendline confirms the pattern, suggesting a continuation of the uptrend.
10. Bullish Triple Top:
● F ormation:Similar to the triple top but signifies a potential bullish reversal. Three peaks are formed at approximately the same price level, indicating strong support. Each peak fails to break below the support level. ● Signal:It suggests a potential reversal of a downtrend, reflecting significant buying pressure and a lack of downward momentum. Traders might anticipate an uptrend when the price breaks above the resistance level formed between the three bottoms.
11. Bullish Flag Pattern and Bullish Pennant Pattern:
● F ormation:Both are continuation patterns appearing after a strong upward price movement. They consist of a consolidation period marked by declining volume and resemble a flag (flag pattern) or a pennant (pennant pattern) on the chart. ● Signal:Anticipates a potential continuation of the prior uptrend. A breakout above the consolidation pattern confirms the bullish signal. 12. Ascending Triangle: ● F ormation:A pattern characterized by a horizontal resistance line and an upward-sloping support line. ● Signal:Typically signifies a potential bullish continuation when the price breaks above the horizontal resistance line.
13. Symmetrical Triangle:
● F ormation:A pattern where both the upper and lower trendlines converge, indicating a period of consolidation and indecision in the market. ● Signal:Could lead to either a bullish or bearish breakout depending on the direction of the breakout from the converging trendlines.
14. Bearish Flag Pattern:
● F ormation:The bearish flag pattern appears after a strong downward price movement (the flagpole) followed by a consolidation period, forming a rectangular pattern that slants against the preceding downtrend. This consolidation resembles a flag on the chart. ● Signal:It indicates a temporary pause or consolidation within a downtrend. Traders expect a continuation of the prior downtrend when the price breaks below the lower trendline of the flag.
15. Bearish Pennant Pattern:
● F ormation:Similar to the bearish flag pattern, the bearish pennant occurs after a sharp downward move (the flagpole) followed by a consolidation period characterized by converging trendlines, resembling a small symmetrical triangle or pennant shape. ● Signal:This pattern suggests a temporary consolidation before a potential continuation of the downtrend. Traders often anticipate a breakdown below the lower trendline of the pennant for further downside movement.
16. Bearish Rising Wedge:
● F ormation:This pattern occurs during an uptrend and resembles a price pattern where the price forms higher highs and higher lows, but within a narrowing range. he upper resistance line slants upwards, while the support line also slopes T upwards. Signal:It suggests a potential reversal towards a downtrend. Traders watch for a ● breakdown below the lower trendline of the rising wedge as a confirmation of a potential downtrend continuation.
17. Descending Triangle:
● F ormation:Formed by a horizontal support line connecting the lows and a downward-sloping resistance line. The price reaches lower highs, creating a triangle shape. ● Signal:This pattern typically signifies a potential continuation of a downtrend when the price breaks below the horizontal support line, indicating a further downward move.
18. Symmetrical Expanding Triangle:
● F ormation:A pattern characterized by both the upper and lower trendlines moving in diverging directions, indicating increasing price volatility. ● Signal: It suggests increased uncertainty and potential bearish momentum. A breakdown below the lower trendline confirms the pattern, indicating a potential continuation of the downtrend.