Here is a simple table to remember the correlation in Chart Patterns.

Last year, I shared more than 50+ free signals and forecasts.

In my predictions, quite often I relied on classic price action patterns.

In this article, I will reveal the win rate of each pattern, the most accurate and the least accurate formations of the last year.

Please, note that all the predictions and forecasts that I shared this year are available on Binance Square and you can back test any of the setup that I identified this year by your own.

Also, some forecasts & signals were based on a combination of multiple patterns.

Here is the list of the patterns that I personally trade:

🔘 Double Top or Bottom with Equal Highs:
The pattern is considered to be valid when the highs or lows of the pattern are equal.
The pattern gives a bearish/bullish signal when its neckline is broken

🔘 Double Top or Bottom with Lower High/Higher Low or Cup & Handle:
The pattern is considered to be valid when the second top/bottom of the patterns is lower/higher than the first one.
The pattern gives a bearish/bullish signal when its neckline is broken

🔘 Head & Shoulders and Inverted Head and Shoulders:
The pattern gives a bearish/bullish signal when its neckline is broken.

🔘 Horizontal Range
The pattern is the extension of a classic double top/bottom with at least 3 equal highs/lows.
The pattern gives a bearish/bullish signal when its neckline is broken.

🔘 Bullish/Bearish Flag:
The pattern represents a rising/falling parallel channel.
It gives a bullish/bearish signal when its upper/lower boundary is broken.

🔘 Rising/Falling Wedge Pattern

The pattern represents a contracting rising/falling channel.
It gives a bullish/bearish signal when its upper/lower boundary is broken.

 Rising/Falling Expanding Wedge:
The pattern represents an expanding rising/falling channel.
It gives a bullish/bearish signal when its upper/lower boundary is broken.

🔘 Descending/Ascending Triangle:
The pattern is the extension of a cup & handle pattern with at least 2 lower highs/lows.
The pattern gives a bearish/bullish signal when its neckline is broken.

Please, also note that all the patterns that I identified and traded were formed on key horizontal or vertical structures.
Remember that the accuracy of any pattern drops dramatically if it is formed beyond key levels.

I consider the pattern to be a winning one if after a neckline breakout, it managed to reach the closest horizontal or vertical structure, not invalidating the pattern's highs/lows.

The most important conclusion that we can make analyzing the performance of these patterns is that they all have an accuracy above 50%. If you properly combine these patterns with some other technical or fundamental tools, the accuracy of the setup will increase dramatically.

Good luck in your trading!

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