14 Chart Pattern

1.
Pennant
A pennant is created when there is a significant movement in the stock, followed by a period
of consolidation – this creates the pennant shape due to the converging lines. A breakout
movement then occurs in the same direction as the big stock move. These are similar to flag
patterns and tend to last between one and three weeks. There will be significant volume at
the initial stock movement, followed by weaker volume in the pennant section, and growth in
volume at the breakout.
2. Cup And Handle
A cup and handle pattern gets its name from the obvious pattern it makes on the chart. The
cup is a curved u-shape, while the handle slopes slightly downwards. In general, the right-
hand side of the diagram has low trading volume, and it can last from seven weeks up to
around 65 weeks.
3. Ascending Triangle
This triangle usually appears during an upward trend and is regarded as a continuation
pattern. It is a bullish pattern. Sometimes it can be created as part of a reversal at the end of
a downward trend, but more commonly it is a continuation. Ascending triangles are always
bullish patterns whenever they occur.
4. Triple Bottom
The Triple Bottom pattern is used in technical analysis as a predictor of a reverse position
following a long downward trend. The Triple Bottom occurs when the price of the stock
creates three distinct downward prongs, at around the same price level, before breaking out
and reversing the trend.
5. Descending Triangle
The descending triangle is another continuation pattern, but this triangle is a bearish pattern
and is usually created as a continuation during a downward trend. Occasionally it can be
seen as a reversal during an upward trend (the opposite of the ascending triangle pattern),
but it is considered to be a continuation.
6. Inverse Head And Shoulders
The inverse head and shoulders stock chart pattern is used as a predictor for the reversal of
a downward trend. It is also sometimes called the “head and shoulders bottom” or even a
“reverse head and shoulders, ” but all of these names mean the same thing within technical
analysis. It gets the name from having one longer peak, forming the head, and two level
peaks on either side which create the shoulders.
7. Bullish Symmetric Triangle
The symmetrical triangle pattern is easy to spot thanks to the distinctive shape which is
developed by the two trendlines which converge. This pattern occurs by drawing trendlines,
which connect a series of peaks and troughs. The trendlines create a barrier, and once the
price breaks through these, a very sharp movement in price follows.
8. Rounding Bottom
This pattern is sometimes also called a “saucer bottom” and demonstrates a long-term
reversal showing that the stock is moving from a downward trend towards an upward trend
instead. It can last any time from several months to years. It is very similar to the cup and
handle, but in this case, there is no handle to the pattern, hence the name.
9. Flag Continuation
The flag stock chart pattern forms through a rectangle. The rectangle develops from two
trendlines which form the support and resistance until the price breaks out. The flag will
have sloping trendlines, and the slope should move in the opposite direction to the original
price movement. Once the price breaks through either the support or resistance lines, this
creates the buy or sell signal.
10. Double Top
The flag stock chart pattern forms through a rectangle. The rectangle develops from two
trendlines which form the support and resistance until the price breaks out. The flag will
have sloping trendlines, and the slope should move in the opposite direction to the original
price movement. Once the price breaks through either the support or resistance lines, this
creates the buy or sell signal.
11. Bearish Symmetric Triangle
developed by the two trendlines which converge. This pattern is created by drawing
trendlines, which connect a series of peaks and troughs. The trendlines create a barrier, and
once the price breaks through these, it is usually followed by a very sharp movement in
price.
12. Falling Wedge
price.
13. Head And Shoulders Top
price.

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1.

2. Cup And Handle

6. Inverse Head And Shoulders

10. Double Top

12. Falling Wedge

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