Patterns

Head and Shoulders - The head and shoulders pattern is a technical chart pattern that indicates a potential reversal of a prevailing trend. It consists of three distinct peaks in the price chart. The middle peak, known as the "head," is the highest, flanked by two lower peaks called the "shoulders." This pattern suggests a shift from a bullish trend to a bearish one.

Double Top - The double top is another reversal pattern that signals a possible end to an uptrend. It is characterized by two peaks on the price chart, with the second peak being lower than the first one. This pattern implies that buying pressure has weakened, potentially leading to a trend reversal.

Double Bottom - The double bottom pattern is a reversal signal indicating the potential end of a downtrend. It consists of two troughs on the price chart, with the second trough being higher than the first. This suggests that selling pressure is diminishing, and a bullish reversal may occur.

Triple Top - The triple top pattern is a reversal signal that appears during an uptrend. It comprises three peaks in the price chart, with the second and third peaks lower than the first. This pattern suggests that the upward momentum is waning, and a bearish reversal might be imminent.

Triple Bottom - Similar to the triple top, the triple bottom pattern is a reversal signal, but it occurs in a downtrend. It consists of three troughs on the price chart, with the second and third troughs higher than the first one. This implies that selling pressure is decreasing, and a bullish reversal could occur.

Wedge - The wedge pattern is a continuation signal that indicates the ongoing direction of the current trend. It is formed by two converging trend lines, either ascending (bullish) or descending (bearish). A breakout from the wedge pattern often suggests that the trend will continue in the same direction.

Flag - The flag pattern is another continuation signal, representing a brief consolidation before the prevailing trend resumes. It consists of two parallel trend lines that are converging. The flag pattern typically occurs after a sharp price movement and suggests that the trend will continue in the same direction once the consolidation is complete.

Cup and Handle - The cup and handle pattern is a bullish continuation pattern. It resembles the shape of a tea cup and consists of a rounded "cup" followed by a smaller consolidation pattern known as the "handle." This pattern suggests a potential upward breakout.

Pennant - A pennant is a short-term consolidation pattern that resembles a small symmetrical triangle. It typically forms after a strong price movement and indicates a brief pause before the trend continues in the same direction.

Bullish Engulfing Pattern - The bullish engulfing pattern occurs when a smaller bearish candlestick is followed by a larger bullish candlestick that completely engulfs the previous one. It suggests a potential bullish reversal.A pennant is a short-term consolidation pattern that resembles a small symmetrical triangle. It typically forms after a strong price movement and indicates a brief pause before the trend continues in the same direction.

Bearish Engulfing Pattern - Conversely, the bearish engulfing pattern occurs when a smaller bullish candlestick is followed by a larger bearish candlestick that engulfs the previous one. It signals a possible bearish reversal.