Chart pattern library
Definitions, formation rules and honest statistical context for the patterns that traders actually use. Sourced from Bulkowski, Nison and our own research.
Reversal patterns
- Head and shoulders
bearish · The head-and-shoulders pattern is a bearish reversal formation that appears after an extended uptrend.
- Inverse head and shoulders
bullish · The inverse head-and-shoulders is the bullish mirror of the head-and-shoulders top: three troughs (shoulder, head, shoulder) with the central trough deepest.
- Double top
bearish · The double-top is a bearish reversal pattern: two consecutive peaks at approximately the same level, separated by a moderate trough.
- Double bottom
bullish · The double-bottom is the bullish counterpart to the double-top: two consecutive troughs at approximately the same low, separated by a moderate rally.
- Rising wedge
bearish · A rising wedge is a bearish reversal pattern formed by converging upward-sloping trendlines, with the lower line steeper than the upper.
- Falling wedge
bullish · A falling wedge is a bullish reversal pattern formed by converging downward-sloping trendlines, with the upper line steeper than the lower.
- Rounding bottom
bullish · A rounding bottom (or saucer) is a long-duration bullish reversal pattern showing a slow, smooth U-shaped transition from downtrend to uptrend.
- Rounding top
bearish · A rounding top is the bearish counterpart to a rounding bottom: a long-duration, smoothly arched price profile signalling exhaustion and slow reversal of an uptrend.
- Triple top
bearish · A triple-top forms when price tests the same resistance three times in succession without breaking through.
- Triple bottom
bullish · A triple-bottom is the bullish symmetric of triple-top: three troughs at approximately the same level with volume declining on each test, confirmed by a close above the connecting high..
Continuation patterns
- Cup and handle
bullish · The cup-and-handle is a bullish continuation pattern made famous by William O'Neil.
- Ascending triangle
bullish · An ascending triangle is a bullish continuation pattern formed by a flat horizontal resistance level and a rising trendline of higher lows.
- Descending triangle
bearish · A descending triangle is a bearish continuation pattern with horizontal support and a descending trendline of lower highs.
- Flag pattern
neutral · A flag is a short-term continuation pattern formed by a sharp directional move (the "flagpole") followed by a brief, contrary-direction parallel-channel consolidation.
- Pennant
neutral · A pennant resembles a flag but with converging trendlines instead of parallel ones — essentially a small symmetric triangle attached to a flagpole.
Bilateral patterns
- Symmetric triangle
neutral · The symmetric triangle is a bilateral continuation/consolidation pattern formed by a sequence of lower highs and higher lows that converge to an apex.
- Rectangle
neutral · A rectangle is a horizontal trading range bounded by approximately parallel support and resistance.
Candlestick patterns
- Doji candlestick
neutral · A doji is a single-candle pattern where open and close are at (or very near) the same level, producing a thin horizontal body with shadows.
- Hammer candlestick
bullish · A hammer is a single-candle bullish reversal signal: a small body near the top of a long lower shadow, ideally at the bottom of a downtrend.
- Shooting star candlestick
bearish · A shooting star is the bearish mirror of the hammer: a small body near the low of a long upper shadow, forming at the top of an uptrend.
- Bullish engulfing candlestick
bullish · A bullish engulfing pattern is a two-candle bullish reversal: a small bearish (down) candle followed by a larger bullish (up) candle whose body completely engulfs the prior body.
- Bearish engulfing candlestick
bearish · A bearish engulfing pattern is a two-candle bearish reversal: a small bullish candle followed by a larger bearish candle whose body completely engulfs the prior body.
- Morning star
bullish · The morning star is a three-candle bullish reversal pattern: a long bearish candle, a small-bodied indecision candle (often a doji) gapping below it, and a long bullish candle that closes well into the first candle's body.
- Evening star
bearish · The evening star is the bearish mirror of the morning star: a long bullish candle in an uptrend, a small-bodied indecision candle, and a long bearish candle closing well into the first body.
- Three white soldiers
bullish · Three white soldiers are three consecutive long bullish candles, each opening within the prior body and closing near its high.