Reversal Patterns

Bullish Bearish

 Double Bottom  Double Top

 Inverted Head & Shoulders  Bearish Head & Shoulder
 Falling Wedge  Rising Wedge
 Bullish Expanding Triangle  Bearish Expanding Triangle
 Triple Bottom  Triple Top

Continuation Patterns
Bullish Bearish

 Bullish Flag Pattern  Bearish Flag Pattern

 Bullish Pennant Pattern  Bearish Pennant Pattern
 Falling Wedge  Rising Wedge
 Ascending Triangle  Descending Triangle

Neutral Patterns
Bullish Bearish

 Bullish Symmetrical Triangle  Bearish Symmetrical Triangle

 Bullish Cup and Handle Pattern  Inverted Cup and Handle Pattern
 Bullish Rectangle  Bearish Rectangle

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 Reversal Patterns

A reversal pattern indicates a change in direction from a rising market to a falling market
and vice versa.

Bullish
Bullish Double Bottom: -

A double bottom will typically indicate a bullish reversal. The subsequent high is nearly 10% up
from the first low.

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 Inverted Head & Shoulders: -

An inverse head and shoulders pattern upon completion signals a bull market. It forms a
bullish reversal pattern after a downtrend.

Bullish Falling Wedge: -

The Falling Wedge is a bullish pattern that begins wide at the top and contracts as
prices move lower. This price action forms a cone that slopes down as the reaction
highs and reaction lows converge. A Falling Wedge is a bullish chart pattern that takes
place in an upward trend, and the lines slope down.

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 Bullish Expanding Triangle: -

In a bullish reversal (an expanding triangle bottom), it has enough strength to rally
above the last higher high, trapping longs in; it then collapses to a third low, trapping
longs out and bears in on the lower low, and then reverses up, forcing both sides to
chase the market up.

Bullish Triple Bottom: -

A triple bottom is a bullish chart pattern used in technical analysis that's characterized
by three equal lows followed by a breakout above the resistance level. The triple bottom
is a bullish reversal pattern that occurs at the end of a downtrend. This candlestick
pattern suggests an impending change in the trend direction after the sellers failed to
break the support in three consecutive attempts.

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 Bearish
Bearish Double Top: -

The double top pattern is a bearish reversal pattern that can be observed at the top of an
uptrend and signals an impending reversal. Unlike the double bottom formation that looks
like the letter “W”, the double top chart pattern resembles the letter “M”, due to the two
equal highs. It is the upward trend has slowed down and that a price decrease is more
likely. The break of the neckline, a horizontal line formed between the lows of the troughs,
is frequently used by traders to confirm the pattern.

Bearish Head & Shoulder: -

The head and shoulders is a pattern used to identify price reversals. A bearish head and
shoulders have three peaks, with the middle one reaching higher than the other two.
It indicates a reversal of an upward trend. Head and shoulder is a 'reversal pattern' in
which the price trend either changes from bearish to bullish or bullish to bearish and takes
a shape that looks like a human head with shoulders on either side as shown in the line
chart below.

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 Bearish Rising Wedge: -

The rising wedge is a chart pattern used in technical analysis to predict a likely bearish
reversal. it is characterized by a narrowing range of price with higher highs and higher
lows, both of which are enclosed by upward sloping trendlines. A rising wedge formed
after an uptrend usually leads to a REVERSAL (downtrend) while a rising wedge formed
during a downtrend typically results in a CONTINUATION (downtrend). Simply put, a
rising wedge leads to a downtrend, which means that it's a bearish chart pattern.

Bearish Expanding Triangle: -

It is a bearish chart pattern that is used in a downtrend market and is formed by a series
of lower highs and a lower resistance level. The descending triangle is formed from two
trendlines, one for high prices and one for lows.

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 Bearish Triple Top: -

Triple Top Pattern is a bearish reversal pattern that forms after an extended uptrend. It
signifies a potential shift in market sentiment from bullish to bearish. The pattern consists
of three consecutive peaks at approximately the same price level, with two minor
pullbacks in between.

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 Continuation Patterns

A continuation pattern in the financial markets is an indication that the price of a stock or
other asset will continue to move in the same direction even after the continuation pattern
completes. A continuation pattern, commonly referenced in technical analysis, is a pattern
that forms within a trend that generally signals a trend continuation. In contrast to reversal
patterns, continuation patterns signal a temporary consolidation in the middle of a trend.

Bullish
Bullish Flag Pattern: -

A bull flag pattern is a bullish chart pattern that occurs when a stock is in a strong uptrend. A bull
flag is a bullish chart pattern formed by two rallies separated by a brief consolidating retracement

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period. The flagpole forms on an almost vertical price spike as sellers get blindsided from the
buyers, then a pullback that has parallel upper and lower trendlines, which form the flag.

Bullish Pennant Pattern: -

A bullish pennant is a technical trading pattern that indicates the impending continuation of a
strong upward price move. They're formed when a market makes an extensive move higher, then
pauses and consolidates between converging support and resistance lines. The upper and lower
trend lines should converge and form a pennant shape. The breakout from the pennant pattern
should occur in the direction of the previous trend. Bullish Pennant Pattern with accuracy of
50% - 55%.

Falling Wedge: -

The Falling Wedge is a bullish pattern that suggests potential upward price movement.
This pattern, while sloping downward, signals a likely trend reversal or continuation,
marking a potential inflection point in trading strategies.

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 Ascending Triangle: -

Ascending triangles are a bullish formation that anticipates an upside breakout.

Bearish
Bearish Flag Pattern: -

The bearish flag is a candlestick chart pattern that signals the extension of the downtrend
once the temporary pause is finished.

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 Bearish Pennant Pattern: -

A bearish pennant is a technical trading pattern that indicates the impending continuation
of a downward price move. They always start with a flagpole – a steep drop in price,
followed by a pause in the downward movement.

Rising Wedge: -

A rising wedge is generally a bearish signal as it indicates a possible reversal during an

uptrend. Rising wedge patterns indicate the likelihood of falling prices after a breakout
through the lower trend line. The support trend line presents the buyer's sentiments, while
the resistance trend line represents the seller's sentiments. The steepness of the
Support/Resistance Trend Line indicates the buyers/seller’s enthusiasm.

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 Descending Triangle: -

A regular descending triangle pattern is commonly considered a bearish chart pattern or

a continuation pattern with a downtrend. But sometimes Descending Triangle can be
bullish without a breakout in the opposite direction known as reversal pattern. At least two
reaction highs are required to form the upper descending trend line. These reaction highs
should be successively lower and there should be some distance between the highs. If a
more recent reaction high is equal to or greater than the previous reaction high, then the
descending triangle is not valid.

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 Neutral Patterns
Neutral chart patterns occur in both trending and ranging markets, and they do not give
any directional cue. Neutral chart patterns signal that a big move is about to happen in
the market.

Bullish

Bullish Symmetrical Triangle

A bullish symmetrical triangle is a bullish continuation chart pattern, the movement

preceding the triangle's formation must be bullish.

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 Bullish Cup and Handle Pattern: -

A cup and handle is considered a bullish signal extending an uptrend, and it is used to
spot opportunities to go long. Technical traders using this indicator should place a stop
buy order slightly above the upper trendline of the handle part of the pattern.

Bullish Rectangle: -

A bullish rectangle is a chart formation that forms when the market consolidates during
an uptrend and is shaped with support and resistance lines. The prevailing trend
generally suggests further upward movement. It stabilizes between temporary support
and resistance levels. The bullish rectangle is derived when the price moves
sideways, bouncing between these two parallel lines forming a box-like shape.

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 Bearish
Bearish Symmetrical Triangle: -

A breakdown from the lower trendline marks the start of a new bearish trend. The bearish
symmetrical triangle should be formed in an ongoing downtrend and the prices should
breakout from the lower trend line.

Inverted Cup and Handle Pattern: -

An inverted cup and handle is a chart pattern that indicates bearish continuation,
triggering a sell signal. Think of it as an upside-down cup and handle. If you look at the
regular cup and handle pattern. It is created when the stock price declines after reaching
a peak, forms an upside-down cup shape, and then rallies back to near the previous high
before declining again.

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 Bearish Rectangle: -

A bearish rectangle is formed when the price consolidates for a while during a downtrend. This
happens because sellers probably need to pause and catch their breath before taking the pair
any lower. In this example, price broke the bottom of the rectangle chart pattern and continued
to shoot down.

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Reversal Patterns
Double Bottom & Top

Head & Shoulder (Neckline)

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Falling & Rising Wedge

Expanding Triangle

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Triple Bottom & Top

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Continuation Patterns
Flag Pattern

Pennant Pattern

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 Falling & Rising Wedge

Ascending & Descending Triangle

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Neutral Patterns
Symmetrical Triangle

Cup & Handle Pattern

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Rectangle

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