Academy › Glossary › Chart Patterns

Chart Patterns

Multi-bar shapes traders watch for continuation or reversal.

• Ascending triangleA flat resistance line with rising lows underneath, usually seen as a continuation pattern.
• Bear flagA sharp drop followed by a small upward-sloping pause, usually a continuation pattern.
• Bull flagA sharp rise followed by a small downward-sloping pause, usually a continuation pattern.
• Cup and handleA rounded base followed by a small pullback, then a possible breakout above the prior high.
• Descending triangleA flat support line with falling highs above it, usually seen as a bearish continuation pattern.
• Double bottomTwo lows at about the same level, forming a W, followed by a break above the middle peak.
• Double topTwo peaks at about the same level, forming an M, followed by a break below the middle low.
• Falling wedgeTwo converging downward-sloping lines, often read as a bullish reversal.
• Head and shouldersThree peaks with the middle one highest, a classic topping pattern.
• Inverse head and shouldersThree troughs with the middle one lowest, a classic bottoming pattern.
• Inverted cup and handleA rounded top followed by a small bounce, then a possible break below support.
• Measured moveA projection that assumes a pattern's move will repeat in size after a breakout.
• NecklineThe line connecting the lows or highs between a pattern's peaks, which confirms the pattern when broken.
• PennantA small symmetrical triangle after a sharp move, a short consolidation before a possible continuation.
• Rising wedgeTwo converging upward-sloping lines, often read as a bearish reversal.
• Rounding bottomA long, gradual U-shaped recovery that can take months or years.
• Symmetrical triangleTwo converging lines, one falling and one rising, forming a coil.

Other topics