CHART PATTERNS (QUICK REFERENCE)
Head & Shoulders (Reversal): Three peaks; middle (“head”) higher than shoulders. Signals a bullish-to-bearish reversal. Inverse head & shoulders (troughs) signals bearish-to-bullish reversal.
Double Top/Bottom (Reversal): Two similar peaks (double top) after an advance signals bearish reversal; two similar troughs (double bottom) after decline signals bullish reversal.
TRIANGLES (CONTINUATION/BREAKOUT):
Ascending: Flat resistance (horizontal top) and rising support (diagonal). Bullish; often breaks upward.
Descending: Flat support (horizontal bottom) and falling resistance (diagonal). Bearish; often breaks downward.
Symmetrical: Converging trendlines (both diagonal). Neutral; breakout usually follows preceding trend. Confirmation requires a decisive move through either trendline.
Flags & Pennants (Continuation): After a sharp move (flagpole), price consolidates in a small channel (flag) or tiny triangle (pennant), then breaks out in the same direction. Bullish flag/pennant follows uptrends; bearish follows downtrends.
Cup & Handle (Continuation): U-shaped “cup” trough followed by a smaller down-sloping “handle”. Seen as a bullish continuation pattern; breakout above handle’s top signals entry.
