Mastering these patterns can level up your trading game ๐ฏ
Hereโs a quick guide youโll want to save ๐
๐ป 1. Double Top โ Bearish Reversal
Looks like an โMโ. Price touches the same high twice, then falls.
โ Sell: When price breaks below the neckline
๐ฏ Target: Height from top to neckline
๐ Stop Loss: Just above the second top
๐ป 2. Head & Shoulders โ Bearish Signal
Middle peak is the tallest, with two smaller ones on the sides.
โ Sell: After neckline breaks
๐ฏ Target: Height from head to neckline
๐ Stop Loss: Above last shoulder
๐ป 3. Rising Wedge โ Bearish Setup
Price rises in a tight range, then drops fast.
โ Sell: On breakdown below the wedge
๐ฏ Target: Where the wedge started
๐ Stop Loss: Just above wedge top
๐บ 4. Double Bottom โ Bullish Reversal
Shaped like a โWโ. Price hits same low twice, then rises.
โ Buy: When price breaks the neckline
๐ฏ Target: Height from bottom to neckline
๐ Stop Loss: Below second bottom
๐บ 5. Inverse Head & Shoulders โ Bullish Signal
Middle dip is deeper, with two smaller dips on the sides.
โ Buy: On breakout above neckline
๐ฏ Target: Height from head to neckline
๐ Stop Loss: Below last dip
๐บ 6. Falling Wedge โ Bullish Setup
Price moves down in a narrow shape, then pops up.
โ Buy: When it breaks above the wedge
๐ฏ Target: Start of the wedge
๐ Stop Loss: Below wedge bottom
๐ก Quick Tip:
Always confirm with RSI, Volume, or Moving Averages before entering a trade.
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๐ Chart image at the bottom!