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Chart Patterns

Complete reference — 28 patterns across reversals, continuations, and gaps.

Reversal (12) · Continuation (12) · Gap Patterns (4)

Bullish
Bearish
Either Way
Reversal
Continuation
Gap

Confluence Bonus

Any pattern is 2-3x stronger when it forms at a key support/resistance level, aligns with the higher timeframe trend, or occurs with above-average volume. Score confluence with our Setup Scorecard tool.

Reversal Patterns
12 patterns · signal the END of a trend
neckline
BearishReversalCommon

Head & Shoulders

Three peaks — middle is highest. Uptrend ends here.

TARGET:Neckline price − (head high − neckline)
▸Neckline connects the two pullback lows between shoulders
▸Volume fades on the right shoulder vs. left shoulder
▸Break below neckline + retest = high-probability entry

📐 Target Calculation Example

Head at $60, Shoulders at $55, Neckline at $50

Target = Neckline − (Head − Neckline) = $50 − ($60 − $50) = $40

If shorting at $49 with stop at $52 → R:R = ($49−$40)/($52−$49) = 3:1

neckline
BullishReversalCommon

Inverse Head & Shoulders

Three troughs — middle is deepest. Downtrend ends here.

TARGET:Neckline price + (neckline − head low)
▸Neckline connects the two pullback highs between shoulders
▸Right shoulder often forms on lower volume than left
▸Break above neckline with volume = entry trigger
break
BearishReversalCommon

Double Top

Two failed breakouts at same resistance. Sellers own that level.

TARGET:Resistance − (resistance − valley) = valley − same distance
▸Two peaks at approximately equal price
▸Confirm by breaking below the valley between the peaks
▸Lower volume on the second peak strengthens the signal

📐 Target Calculation Example

Resistance at $100, Valley at $90

Target = $90 − ($100 − $90) = $80

If shorting at $89 with stop at $101 → R:R = ($89−$80)/($101−$89) = 0.75:1 — wait for better entry or tighter stop

break
BullishReversalCommon

Double Bottom

Support held twice. Buyers are defending this level hard.

TARGET:Support + (peak − support) = peak + same distance
▸Two troughs at approximately equal price
▸Confirm by breaking above the peak between the troughs
▸Higher volume on the second bounce = stronger signal
break
BearishReversalModerate

Triple Top

Three failed breakouts. Exhaustion — sellers completely own this level.

TARGET:Resistance − pattern height (more reliable than double top)
▸Three peaks at approximately equal price
▸Volume typically decreases on each successive peak
▸Break below support connecting the two troughs = entry
break
BullishReversalModerate

Triple Bottom

Three successful supports. Accumulation base is strong.

TARGET:Support + pattern height (more reliable than double bottom)
▸Three troughs at approximately equal price
▸Volume typically decreases on each successive low
▸Break above resistance connecting the two peaks = entry
BearishReversalModerate

Rounding Top

Slow, gradual topping — distribution over weeks or months.

TARGET:Pattern height subtracted from breakdown point
▸Smooth arc from uptrend → peak → downtrend
▸Volume typically mirrors the arc (high → low → high)
▸Breakdown below prior support completes the pattern
BullishReversalModerate

Rounding Bottom

Slow, gradual bottoming — accumulation over weeks or months.

TARGET:Pattern depth added to breakout point
▸Smooth U-shaped arc from downtrend → trough → uptrend
▸Volume mirrors the arc (high → low → high)
▸Breakout above prior resistance completes the pattern
BullishReversalCommon

V-Bottom (Spike Reversal)

Sharp drop, immediate sharp recovery. Capitulation + fast reversal.

TARGET:Recovery target = equal to depth of the drop
▸Spike low with high volume = capitulation signal
▸Recovery should be swift and strong — not gradual
▸Common in crypto on news-driven events; trust the volume
BearishReversalModerate

Rising Wedge

Both lines rise and converge. Looks bullish — it's a trap.

TARGET:Wedge height subtracted from breakdown point
▸Both support and resistance rising, support rises faster
▸Volume declines as pattern develops — bearish divergence
▸Break below support line + volume spike = entry
BullishReversalModerate

Falling Wedge

Both lines fall and converge. Looks bearish — it's a coil.

TARGET:Wedge height added to breakout point
▸Both support and resistance falling, resistance falls faster
▸Volume declines as pattern develops — exhaustion
▸Break above resistance line + volume spike = entry
gapgap
BearishReversalModerate

Island Reversal

Gap up → consolidation → gap down. Trapped buyers must sell.

TARGET:Full return to pre-island price level
▸Two clear gaps isolate the 'island' of price action
▸Volume spikes on both gaps confirm the reversal
▸Bullish version (gap down then gap up) works identically
Continuation Patterns
12 patterns · signal CONTINUATION of the trend
BullishContinuationCommon

Ascending Triangle

Flat resistance + rising support. Buyers getting impatient.

TARGET:Triangle height added to the breakout point
▸Flat top resistance; ascending trendline support
▸Volume typically contracts as triangle forms, expands on break
▸Breakout above resistance + volume confirmation = entry

📐 Target Calculation Example

Flat resistance at $50, Rising support starts at $42 (triangle height = $8)

Breakout at $50 → Target = $50 + $8 = $58

If buying at $51 with stop at $48 → R:R = ($58−$51)/($51−$48) = 2.3:1

BearishContinuationCommon

Descending Triangle

Flat support + falling resistance. Sellers getting more aggressive.

TARGET:Triangle height subtracted from the breakdown point
▸Flat bottom support; descending trendline resistance
▸Volume contracts as triangle forms, expands on break
▸Breakdown below support + volume confirmation = entry
Either WayContinuationCommon

Symmetrical Triangle

Converging lines — coiling for a breakout. Prior trend bias.

TARGET:Triangle height added to the breakout point
▸Lower highs + higher lows, converging to an apex
▸Trade in the direction of the breakout
▸Prior trend usually continues — don't fight it
BullishContinuationCommon

Bull Flag

Strong pole + tight downward channel. Brief rest before next leg up.

TARGET:Flag base + pole height
▸Pole: strong vertical move on high volume
▸Flag: calm, low-volume pullback in downward channel
▸Break above upper channel line + volume = entry

📐 Target Calculation Example

Pole: $30 to $45 (height = $15), Flag pulls back to $42

Breakout at $45 → Target = $45 + $15 = $60

If buying at $45.50 with stop at $41.50 → R:R = ($60−$45.50)/($45.50−$41.50) = 3.6:1

BearishContinuationCommon

Bear Flag

Strong drop + tight upward channel. Brief bounce before more downside.

TARGET:Flag base − pole length
▸Pole: strong vertical drop on high volume
▸Flag: low-volume bounce in slight upward channel
▸Break below lower channel line + volume = entry
BullishContinuationModerate

Bull Pennant

Strong pole + tiny symmetrical triangle. Tightest compression before blast.

TARGET:Pennant base + pole height
▸Pole: sharp vertical move; pennant: converging triangle
▸Volume contracts sharply inside the pennant
▸Breakout above pennant resistance on volume = entry
BearishContinuationModerate

Bear Pennant

Strong drop + tiny converging triangle. Tightest compression before breakdown.

TARGET:Pennant top − pole length
▸Pole: sharp vertical drop; pennant: converging triangle
▸Volume contracts sharply inside the pennant
▸Breakdown below pennant support on volume = entry
BullishContinuationCommon

Cup & Handle

U-shaped base + small pullback. Long base builds conviction.

TARGET:Cup depth added to the rim breakout point
▸Cup should be smooth and rounded, not V-shaped
▸Handle stays in upper ⅓ of the cup — shakes out weak hands
▸Break above cup rim with volume = entry

📐 Target Calculation Example

Cup rim at $75, Cup bottom at $60 (depth = $15)

Breakout at $75 → Target = $75 + $15 = $90

If buying at $76 with stop at $72 → R:R = ($90−$76)/($76−$72) = 3.5:1

BearishContinuationModerate

Inverse Cup & Handle

Inverted U base + small bounce. Distribution building at the top.

TARGET:Cup height subtracted from breakdown point
▸Inverted cup — smooth arc from up to peak to down
▸Handle is a small bounce in lower portion of the cup
▸Break below rim with volume = entry
Either WayContinuationCommon

Rectangle

Horizontal S/R with bouncing price. Consolidation before next move.

TARGET:Rectangle height added (breakout up) or subtracted (breakdown)
▸Price oscillates between flat support and flat resistance
▸Volume typically drops inside the range
▸Trade the breakout in the direction of the prior trend
BullishContinuationCommon

Rising Channel

Two parallel rising lines. Orderly uptrend — buy dips to support.

TARGET:Channel height measured from breakout above upper line
▸Two parallel upward-sloping trendlines containing price
▸Buy at channel support; take profit at channel resistance
▸Break above upper line = acceleration; below lower = trend end
BearishContinuationCommon

Falling Channel

Two parallel falling lines. Orderly downtrend — sell rallies to resistance.

TARGET:Channel height measured from breakdown below lower line
▸Two parallel downward-sloping trendlines containing price
▸Sell at channel resistance; take profit at channel support
▸Break below lower line = acceleration; above upper = trend end
Gap Patterns
4 patterns · price discontinuities that signal commitment
gap
Either WayGapCommon

Common Gap

Gap within a range or consolidation. Usually fills quickly.

TARGET:Price typically returns to fill the gap — no sustained move
▸Occurs in low-volume, trendless markets
▸Usually filled within days
▸Do not trade in the direction of a common gap
gap
BullishGapCommon

Breakaway Gap

Gap that starts a new trend. High-conviction move begins here.

TARGET:Minimum move = prior range height; gap usually not filled
▸Occurs on high volume breaking out of consolidation
▸Price does NOT fill the gap — it acts as support/resistance
▸Bullish: gap up from base. Bearish: gap down from top.
gap
BullishGapModerate

Runaway Gap (Measuring)

Gap in the middle of a trend. Measures remaining potential.

TARGET:Gap location + distance traveled to gap (approx. halfway point)
▸Occurs in the middle of a strong trend on moderate volume
▸Marks roughly the halfway point of the move
▸Bullish: gap up mid-rally. Bearish: gap down mid-drop.
gap!fill
BearishGapModerate

Exhaustion Gap

Final gap before reversal. Last gasp of the trend.

TARGET:Price reverses and fills the gap — signals trend end
▸Occurs after an extended move on declining follow-through
▸Unlike runaway gap, price often fills within days/weeks
▸Confirmed when price gaps down the other way (Island Reversal)

Universal Chart Pattern Rules

01.Pattern is only valid at a meaningful S/R level — not in empty space
02.Volume must confirm the breakout; low-volume breaks are traps
03.Wait for a candle close beyond the level — not just a wick
04.Price target = minimum expectation, not a guaranteed limit
05.Failed patterns often reverse sharply — set stops beyond pattern boundary
06.Higher timeframe patterns dominate lower timeframe noise

Failed Patterns — When the Expected Move Breaks

⚠Failed Double Top: Price breaks above the double top → trend continues bullish
⚠Failed Head & Shoulders: Price breaks above the right shoulder → bullish continuation
⚠Failed Triangle: Price breaks the wrong direction → fast reversal likely

“A failed pattern is itself a signal. When the expected move fails, the opposite move is often violent.”

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