NOTES BILATERAL CHART PATTERNS

Ascending Triangle

Descendirg Triangle

Symmetrical Triangle

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DOUBLETOP NOTES

A double top is a reversal panern that is formed

after there is an extended move up.

In the chart above you can see that two peaks or

ootops"
were formed alter a strong move up.

This is a strong sign that a reversal is going to

occur because it is telling us rhar the buying
pressure is just about flnished.

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CONTINUATION CHART PATTHRNS NOTES

FallingWedge Bullish Rectangle

Bullish Pennant Rising \f,.edge

Bearish Rectangle Bearish Pennant

NOTtrS RT\TRSAL CHART PATTERNS

Double Top Head and Shoulders

Rising \fedge Double Bottom

Inr erse Head and Shoulders Falling Wedge

 DESCENDING TRIANGLtr DOUBLE BOTTOM

As you probably guessed, descending triangles are the

The double bottom is also a trend reversal formation,
elact-opposite of ascendirg triangles. In descending
but this time we are looking ro go long instead of short.
qi*$e chart patrerns, rhere is a string of lower hrghs These formations occur a-fter extended downtrends when
that forms th9 upper line. The lower line is a support
two valleys or *bottoms" have been formed.
level in which the price cannot seem to break.
This is a sign that the sellirg pressure is about finished,
In the chart above, you can see that the price is gradually
and that a reversal is about to occur.
making lower hrghr. This tells us thaithe sellers are
starting to gain some ground against the buyers.

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RISINCWtrDCE BEARISHPtrNNANT

A rising wedge is formed when the price consolidates

benveen upward sloping support and resistance lines.
If the risingwedge forms after an uptrend, it's usurlly
a bearish reversal pattern.
t
A bearish pennant is formed during a steep, almost
vertical, downtrend. A-fter that sharp drop in price, some
sellers close their positions while other sellers decide to
join the trend, making the price consolidate for a bit.

On the other hand, if it forms during a downtrend, As soon as enough sellers jo*p in, the price
it could slgnal a continuation'of the down move. breaks below the bottom of the pennant and
continues to move down.

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 HEADAND SHOULDERS
A head and shoulders pattern is also a trend reversal
formation. It is formed by a peak (shoulder),
followed by a higher peak (head), and then another
lower peak (shoulder).
In this example, we can easily see the head and shoulders
pattern. The head is the second peak and is the highest
point in the pattern. The two shoulders also form peaks
but do not exceed the height of the head.
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SYMMETRICAL TRIANGLE
A symmetrical triangle is a chart formation where the
slope of the price's highs, and the slope of the price's
lows converge together, to a point where it looks like a
triangle. What's happening during this formation is that
the market is making lower highs and higher lows.
This means that neither the buyers nor the sellers are
pushing the price far enough to make a clear trend. If this
were a battle between the buyers and sellers, then this
would be a draw. This is also a rFpe of consolidation.
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ASCENDINC TRIANCLtr
An ascending triangle is a tFpe of triangle chart panern
that occurs when there is a resistance level and a slope of
higher lows. What happens during this time is that there
is a certain level that the buyers cannot seem to exceed.
However, they are gradually starting to push the price up
as evidenced by the higher lows.
Most of the time, the price will in fact, go up. The point
we are trylilg to make is that you should nofbe obsessed
with which direction the price goes, butyou should be
ready for movement in EITHER direcrion.
I\\TRST HEAD AND SHOULDERS
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An inverse head and shoulders pattern is also
a trend reversal formation.
The name speaks for itself. It is basicrlly a head and
shoulders formation, except this time it's upside
down. Avalley is formed (shoulder), followed by an
erren lower valley (head), and then another higher
valley (shoulder). These formations occur afrer
exrended downward movements.
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