MASTER THESE CHART PATTERNS TO LEVEL UP YOUR TRADING!

Chart patterns are key to understanding price action and making smarter trades. Let’s break down the 3 main types: Reversal, Continuation, and Bilateral patterns.

🔄 Reversal Patterns – Hint at a possible trend change

1️⃣ Double Top – Bearish. Two peaks at the same resistance, followed by a drop.

2️⃣ Head & Shoulders – Bearish. Three peaks, with a break below the neckline confirming the reversal.

3️⃣ Rising Wedge – Bearish. Price rises within narrowing highs and lows, then breaks downward.

4️⃣ Double Bottom – Bullish. Two troughs at the same support, then a move upward.

5️⃣ Inverse Head & Shoulders – Bullish. Same as H&S, but upside down — breaks above the neckline.

6️⃣ Falling Wedge – Bullish. Downward-sloping pattern that breaks out higher.

▶️ Continuation Patterns – Signal that the trend will likely continue

1️⃣ Falling Wedge – Bullish. Price dips within a narrowing channel, then pops upward.

2️⃣ Bullish Rectangle – Sideways range, then breakout to the upside.

3️⃣ Bullish Pennant – Small triangle after an uptrend, usually leads to further gains.

4️⃣ Rising Wedge – Bearish. Price climbs in a tight channel, then breaks down.

5️⃣ Bearish Rectangle – Sideways chop before breaking lower.

6️⃣ Bearish Pennant – Small triangle after a downtrend, often leads to more downside.

🔀 Bilateral Patterns – Breakout can go either way

1️⃣ Ascending Triangle – Rising lows + flat top. Can break up or down.

2️⃣ Descending Triangle – Falling highs + flat bottom. Direction depends on breakout.

3️⃣ Symmetrical Triangle – Converging highs and lows. Breakout direction is 50/50.

Pro Tips for Traders:

✅ Reversal patterns = trend is likely to change

✅ Continuation patterns = trend is likely to go on

✅ Bilateral patterns = be ready for either direction

Master these patterns to improve your entries, exits, and risk management.

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