1. Double Bottom
Double bottom pattern is a bullish reversal pattern, it is formed after two consecutive bottoms around the same level and indicates a possible trend reversal from down to up. As price tests the same level twice and rejects it, buyers come back in and push up the price. Traders who identify the double bottom pattern often buy when the price breaks above the pattern's neckline to profit from the expected rally in price.
2. Triple Bottom
Triple bottom pattern is similar to the double bottom pattern but is formed after three consecutive bottoms. It is also a bullish reversal pattern, indicating a potential uptrend after a period of decline. Once the price breaks above the neckline, it confirms the pattern and traders may look for opportunities to buy.
3. Double Top
The double top pattern is the bearish equivalent of the double bottom pattern. It is formed after two consecutive peaks at around the same level, signaling a possible trend reversal from up to down. As the price tests the level twice and faces selling pressure, traders may start to sell the security, leading to a potential downtrend.
4. Triple Top
The triple top pattern is similar to the double top pattern but is formed after three consecutive peaks. It is a bearish reversal pattern suggesting a potential downward trend. Traders may begin to sell the security when the price breaks below the neckline.
5. Head and Shoulders
The head and shoulders pattern is a bearish reversal pattern that looks like a human head and two shoulders connected by a neckline. It is formed after an uptrend and indicates a potential trend reversal to a downtrend. When the price breaks through the neckline, it confirms the pattern and traders may look for opportunities to sell.
6. Inverse Head and Shoulders
The inverse head and shoulders pattern is the opposite of the head and shoulders pattern. It is a bullish reversal pattern formed during a downtrend that signals a potential trend reversal to an uptrend. Once the price breaks above the neckline, it confirms the pattern and traders may look for opportunities to buy.
7. Cup and Handle
The cup and handle pattern is a bullish continuation pattern, it looks like a cup and handle. It is formed during an uptrend and usually suggests that a security is taking a temporary pause before continuing its upward journey. Once the price breaks above the handle's resistance level, it confirms the pattern and traders may look for opportunities to buy.
8. Flag
The flag pattern is a bullish continuation pattern that is formed when there is a sharp price movement followed by a short period of consolidation or sideways movement. It looks like a flagpole and a flag. Once the price breaks out of the flag pattern, it confirms the pattern and traders may look for opportunities to buy.
9. Pennant
The pennant pattern is similar to the flag pattern but is formed by two converging trend lines. It is also a continuation pattern that signals a potential continuation of an existing trend. Once the price breaks out of the pennant pattern, it confirms the pattern and traders may look for opportunities to buy or sell, depending on the direction of the trend.
10. Ascending Triangle
The ascending triangle pattern is a bullish continuation pattern formed by a horizontal resistance line and an ascending trend line. It indicates that buyers are gradually becoming more aggressive as they push the price higher against the resistance. Once the price breaks above the resistance line, it confirms the pattern and traders may look for opportunities to buy.
11. Descending Triangle
The descending triangle pattern is the bearish equivalent of the ascending triangle pattern. It is formed by a horizontal support line and a descending trend line. It suggests that sellers are gradually becoming more aggressive as they push the price lower against the support. Once the price breaks below the support line, it confirms the pattern and traders may look for opportunities to sell.