📊 TOP-6 chart patterns every trader must know! 👇
🔻 1. Double Top — Bearish reversal
Two peaks at the same level with a subsequent breakout of the 'neckline'.
Entry: below the neckline
Target: height of the figure
Stop: above the second peak
🔻 2. Head & Shoulders — Bearish reversal
One large peak (head) between two smaller (shoulders) with a breakout of the neckline.
Entry: on the breakout of the neckline
Target: distance from the head to the neckline
Stop: above the right shoulder
🔻 3. Rising Wedge — Bearish continuation
Price is narrowing in an upward slope — often leads to a downward breakout.
Entry: after a downward breakout
Target: the beginning of the wedge
Stop: just above the upper boundary of the wedge
🔺 4. Double Bottom — Bullish reversal
Two bottoms form a 'W' with a breakout of the neckline.
Entry: on the breakout of the neckline
Target: height from the bottom to the neckline
Stop: below the second bottom
🔺 5. Inverse Head & Shoulders — Bullish reversal
Deep trough (head) between two smaller (shoulders), breakout upwards.
Entry: on the breakout of the neckline
Target: from the neckline to the bottom of the head
Stop: below the right shoulder
🔺 6. Falling Wedge — Bullish continuation
Price is narrowing down between converging lines — often leads to an increase.
Entry: on an upward breakout
Target: the base of the wedge
Stop: below the support line
💡 Trading tips:
Confirm signals with volume, RSI, and moving averages.
The larger the timeframe — the more reliable the signal.
Use partial position closing to secure profits.
🎯 Master these patterns — and trading will become more confident and profitable!
