1. Consolidation Patterns: After a trend correction, it is likely to continue in the original direction.
1. Ascending Triangle
The upper side is a horizontal resistance line, and the lower side is an upward sloping support line (low points gradually rising). After breaking the resistance, the price is likely to rise rapidly.
2. Descending Triangle
The lower side is a horizontal support line, and the upper side is a downward sloping resistance line (high points gradually lowering). After breaking the support, the price is likely to decline rapidly.
3. Bullish Symmetrical Triangle
The price fluctuation range converges (both upper and lower sides slope and intersect), usually continuing the original upward trend, with a high probability of breaking upwards.
4. Bullish Flag
A small consolidation pattern that appears after a rapid rise, with the consolidation range sloping downwards like a 'flag'. After the consolidation ends, a continuation of the upward trend is likely.
5. Bearish Flag
A small consolidation pattern that appears after a rapid decline, with the consolidation range sloping upwards like a 'flag'. After the consolidation ends, a continuation of the downward trend is likely.
2. Reversal Patterns: The trend may change direction.
6. Double Top (M Top)
The price forms two close high points (shaped like an 'M'), with strong resistance at the top. After breaking below the low point line between the two highs (neckline), a significant decline is likely.
7. Double Bottom (W Bottom)
The price forms two close low points (shaped like a 'W'), with strong support at the bottom. After breaking the high point line between the two low points (neckline), a significant rise is likely.
8. Triple Top
The price forms three close high points, with resistance strength greater than a double top. After breaking the neckline, a significant decline usually occurs.
9. Triple Bottom
The price forms three close low points, with support strength greater than a double bottom. After breaking the neckline, a significant rise usually occurs.
10. Head and Shoulders Top
Formed by a clearly higher 'head' (peak) and two lower 'shoulders' (small peaks). After breaking the neckline (the line connecting the low points of the two shoulders), a significant decline usually occurs.
11. Head and Shoulders Bottom
Formed by a clearly lower 'head' (trough) and two higher 'shoulders' (small troughs). After breaking the neckline (the line connecting the high points of the two shoulders), it usually rises significantly.
3. Wedge Pattern: Focus on the direction of the breakout, often accompanied by a trend reversal.
12. Bullish Wedge (Falling Wedge)
The price forms a converging range during a decline (both upper and lower boundaries slope downwards, with the upper boundary steeper). Generally breaks upwards, indicating a trend reversal upwards.
13. Bearish Wedge (Rising Wedge)
The price forms a converging range during an upward movement (both upper and lower boundaries slope upwards, with the lower boundary steeper). Generally breaks downwards, indicating a trend reversal downwards.
14. Falling Wedge (Supplementary Notes)
Consistent with the bullish wedge, emphasizing the converging pattern during the downward process, usually reversing upwards after the breakout.
15. Rising Wedge (Supplementary Notes)
Consistent with the bearish wedge, emphasizing the converging pattern during the upward process, usually reversing downwards after the breakout.