Bullish patterns

Triple Top
The pattern is formed by three rallies (1,2,3), on the third rally it pushes past
the resistance line formed by the first two. The third column will rise past the
resistance line an equal distance to that of the bottoms.

Breakout of a Spread Triple Top

This pattern is a variation to the triple top except that on the third rally it fails
to reach the resistance line. On the fourth move it breaks past the resistance
line and should rise an equal amount to that of its bottoms.

Ascending Triple Top

Another variation of the triple top except in this case each consecutive top is
higher than the last. However this pattern does not give a price objective like
the triple top. The signal in this variation is to buy on the breakout.

Upward Breakout of a Bullish Resistance Line

A variation of the ascending triple top except in this case there is a fourth
consecutive top is higher than the last. The signal in this variation is to buy on
the breakout.

Upward Breakout of a Bearish Resistance Line

This pattern consists of a consecutive series of lower highs. When the price
breaks through the resistance line a buy signal is given.

Bearish patterns

Triple Bottom
The pattern is formed by three downs (1,2,3), on the third drop it pushes past
the support line formed by the first two. The third column will drop past the
support line an equal distance to that of the tops.

Breakout of a Spread Triple Bottom

This pattern is a variation to the triple bottom except that on the third rally it
fails to breach the support line. On the fourth move it breaks past the support
line and should drop an equal amount to that of its tops.

Descending Triple Bottom

Another variation of the triple bottom except in this case each consecutive low
is lower than the last. When the price drops below the support line this
generates a clear selling signal.

Downward Breakout of a Bearish Support Line

A variation of the descending triple bottom except in this case there is an
upward bias. The signal is to sell on the support line breakout.

Downward Breakout of a Bullish Support Line

This pattern consists of a consecutive series of higher lows. When the price
breaks through the support line a sell signal is given.

Bullish trend reversal patterns

Inverted Head and Shoulders Pattern The inverted head and shoulders
pattern is found in candlestick, point and figure, and chart patterns and is
considered one of the most reliable reversal patterns. The price forms a
low on column one, followed by a period of consolidation. A second low
is created followed by another period of consolidation, the right shoulder
is then formed followed by a buy signal as it crosses the neckline.
Parralel support and resistance lines can be drawn as well as a visible
neckline. The height of the lowest low should give a projection of the
strength of the upward move.

Triple Bottom The triple bottom is a variation of the inverted head and
shoulders pattern. This pattern consists of three lows of similar height.
After the third low is formed and the price movement breaks the
neckline, a bullish signal is given. The expected rise should be of similar
height as from the neckline to the low.

Double Bottom The double bottom is a variation of the triple bottom

pattern. This pattern consists of two lows of similar height. After the
second low is formed and the price movement breaks the neckline, a
bullish signal is given. The expected rise should be of similar height as
from the neckline to the tops. It is important to note that before the
breakout, the trend line is broken.

Bullish Rectangle Reversal The downtrend forms a clear period of

consolidation, the resistance line is then broken on a heavy volume day,
it is at this point where the bullish signal occurs.

Bearish trend reversal patterns

Head and Shoulders
The head and shoulders pattern is found in candlestick, point and
figure, and chart patterns and is considered one of the most reliable
reversal patterns. The price forms a high on column one, followed
by a period of consolidation. A second high is created followed by
another period of consolidation, the right shoulder is then formed
followed by a sell off. High volume should be seen on the last
downward move. Parralel support and resistance lines can be drawn
as well as a visible neckline. The height of the highest high should
give a projection of the drop of the final downward move.

Triple Top
The triple top is a variation of the head and shoulders pattern. This
pattern consists of three peaks of similar height. After the third peak
is formed and the price movement breaks the neckline, a bearish
signal is given. The expected drop should be of similar height as
from the neckline to the tops.

Double Top
The double top is a variation of the triple top pattern. This pattern
consists of two peaks of similar height. After the second peak is
formed and the price movement breaks the neckline, a bearish signal
is given. The expected drop should be of similar height as from the
neckline to the tops. It is important to note that before the price
drop, the trend line is broken.

Bearish Rectangle Reversal

The uptrend forms a clear period of consolidation, the support line is
then broken on a heavy volume day, it is at this point where the
bearish signal occurs.

Trend reversal patterns

Head and Shoulders
The head and shoulders pattern is found in candlestick, point and
figure, and chart patterns and is considered one of the most reliable
reversal patterns. The price forms a high on column one, followed
by a period of consolidation. A second high is created followed by
another period of consolidation, the right shoulder is then formed
followed by a sell off. High volume should be seen on the last
downward move. Parralel support and resistance lines can be drawn
as well as a visible neckline. The height of the highest high should
give a projection of the drop of the final downward move.

Inverted Head and Shoulders Pattern

The inverted head and shoulders pattern is found in candlestick,
point and figure, and chart patterns and is considered one of the
most reliable reversal patterns. The price forms a low on column
one, followed by a period of consolidation. A second low is created
followed by another period of consolidation, the right shoulder is
then formed followed by a buy signal as it crosses the neckline.
Parralel support and resistance lines can be drawn as well as a
visible neckline. The height of the lowest low should give a
projection of the strength of the upward move.

Triple Top
The triple top is a variation of the head and shoulders pattern. This
pattern consists of three peaks of similar height. After the third peak
is formed and the price movement breaks the neckline, a bearish
signal is given. The expected drop should be of similar height as
from the neckline to the tops.

Triple Bottom
The triple bottom is a variation of the inverted head and shoulders
pattern. This pattern consists of three lows of similar height. After
the third low is formed and the price movement breaks the neckline,
a bullish signal is given. The expected rise should be of similar
height as from the neckline to the low.

Double Top
The double top is a variation of the triple top pattern. This pattern
consists of two peaks of similar height. After the second peak is
formed and the price movement breaks the neckline, a bearish signal
is given. The expected drop should be of similar height as from the
neckline to the tops. It is important to note that before the price
drop, the trend line is broken.

Double Bottom
The double bottom is a variation of the triple bottom pattern. This
pattern consists of two lows of similar height. After the second low
is formed and the price movement breaks the neckline, a bullish
signal is given. The expected rise should be of similar height as
from the neckline to the tops. It is important to note that before the
breakout, the trend line is broken.

Bearish Rectangle Reversal

The uptrend forms a clear period of consolidation, the support line is
then broken on a heavy volume day, it is at this point where the
bearish signal occurs.

Bullish Rectangle Reversal

The downtrend forms a clear period of consolidation, the resistance
line is then broken on a heavy volume day, it is at this point where
the bullish signal occurs.

Wait and see patterns

Flag
This pattern shows a large gain, followed by a period of consolidation.
It then breaks past the resistance line. The height of the new breakout
should be similar to that of the opening move in the pattern.

Inverted Flag
This pattern shows a large drop, followed by a period of consolidation.
It then breaks past the support line. The height of the new fall should be
similar to that of the opening drop in the pattern.

Pennant Pattern
This is a variation of the Flag pattern except for the structure of the
consolidation. In this case it is triangular. The breakout should also
have large volume and the height of the new breakout should be similar
to that of the opening move in the pattern.

Inverted Pennant Pattern

This is a variation of the Inverted Flag pattern except for the structure
of the consolidation. In this case it is triangular. The downward
breakout should also have large volume and the height of the
downward breakout should be similar to that of the opening move in
the pattern.

Bullish Breakout of a Symmetrical Triangle

This pattern is similar the pennant pattern except it does not have a
pole. This pattern is rather unreliable and there is real bias to the
direction it may actually take. False breakouts in this case may also
occur so look for large volume to accompany the breakout.

Bearish Breakout of a Symmetrical Triangle

This pattern is similar the inverted pennant pattern except it does not
have a pole. This pattern is rather unreliable and there is real bias to
the direction it may actually take. False breakouts in this case may also
occur so look for large volume to accompany the move..