Reversal Patterns
- **Head and Shoulders / Inverse H&S**: classic reversal at the end of a trend
- **Double Top / Bottom**: two failed attempts at a level → reversal
- **Triple Top / Bottom**: rarer but stronger version
Continuation Patterns
- **Flags and Pennants**: brief consolidations inside a strong trend
- **Symmetrical / Ascending / Descending Triangles**
- **Rectangles**: sideways consolidations before a break
Measuring the Move
Most patterns give an approximate price target equal to the height of the pattern projected from the breakout point.
Confirmation
- Wait for a decisive close beyond the neckline / trigger
- Look for volume expansion (where available)
- Check higher-timeframe context
Common Mistakes
- Trading patterns against the higher-timeframe trend
- Ignoring failed breakouts (false breaks) — often the highest-probability trades in the opposite direction
- Using tiny patterns on low timeframes without a filter
Key Takeaways
- Patterns are visual expressions of order flow.
- Confirmation and structure matter more than the exact shape.
- Failed patterns are also trading opportunities.