1. Falling Wedge
The falling wedge forms when the price consolidates between two downward-sloping trendlines that converge. It suggests that sellers are losing steam. When price breaks above the upper trendline, it's a strong bullish signal.
Entry: After breakout
Stop Loss: Below the recent low
Target: Based on the height of the wedge
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2. Symmetrical Triangle
A symmetrical triangle shows a period of consolidation, where both buyers and sellers pull the price into a tighter range. A bullish breakout above the upper trendline suggests the continuation of an uptrend.
Entry: On breakout above resistance
Stop Loss: Just below the triangle
Target: Height of the triangle projected upward
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3. Inverse Head & Shoulders
This pattern signals a trend reversal. It features three troughs: a lower low (head) flanked by two higher lows (shoulders). A breakout above the neckline confirms bullish momentum.
Entry: Breakout of the neckline
Stop Loss: Below the right shoulder
Target: Distance from head to neckline projected upward
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4. Cup and Handle
This pattern resembles a teacup. The price dips to form a rounded bottom (cup), followed by a small consolidation (handle). A breakout from the handle signals a bullish move.
Entry: Breakout above handle
Stop Loss: Below the handle
Target: Depth of the cup added to breakout point
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5. Ascending Triangle
This is a continuation pattern, typically occurring during an uptrend. It features a horizontal resistance line and rising support. Breakout above resistance is considered bullish.
Entry: Break above horizontal line
Stop Loss: Below the rising trendline
Target: Height of the triangle added to breakout
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6. Bullish Rectangle
This pattern forms during a pause in an uptrend, where price moves sideways between parallel resistance and support. Breakout to the upside signals a continuation of the bullish trend.
Entry: Break above resistance
Stop Loss: Below the support level
Target: Height of the rectangle added to breakout
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Conclusion:
Bullish chart patterns are essential tools in a trader’s arsenal. They provide insights into market psychology and offer clear setups for entry, stop loss, and target levels. When used with volume analysis and confirmation signals, they can dramatically improve your trading decisions.
Here is the pattern image 👇
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