Technical Analysis A to Z

Double Top Chart Patterns are bearish reversal chart formations that occur in the context of a price uptrend. These reversal patterns are characterized by two distinct “tops” which represent attempts to break through a resistance area (heavy supply) that ultimately fail and result in a trend reversal as price breaks falls through a common horizontal [...]

The Double Bottom Chart Pattern is a bullish reversal formation that marks the end of a previous downtrend or price decline. This pattern usually materializes after a sharp decline in price and as the name implies, forms two similar lows before breaking out to the upside and completing the trend reversal. Double Bottom Chart Pattern [...]

The Head and Shoulders Chart Pattern is a bearish reversal formation that occurs in the presence of an uptrend in price. This pattern gets it’s name from having three distinct tops with the middle top being higher than either the first or the second. The middle top is known as the “head” and both lower [...]

The Inverse (Reverse) Head and Shoulders Chart Pattern is a bullish reversal formation that forms at market bottoms. The pattern consists of three bottoms that occur in the following order: left shoulder, head and then right shoulder. Each shoulder bottom forms at a higher price than the head which is the lowest bottom of the [...]

The Bull Flag Chart Pattern is a bullish continuation formation that occurs in the context of an uptrend. This chart pattern is characterized by a run up in price which is followed by a pullback over the course of as little as one day and up to multiple days. This continuation chart pattern can be [...]

The Bear Flag Pattern is a bearish continuation chart formation that occurs only in the context of a downtrend. This chart pattern resembles an upside down flag with the move in the direction of the trend being the flag pole and the counter trend move to the upside representing the flag portion of the pattern. Bear [...]

The Ascending Triangle Chart Pattern is a bullish continuation formation that serves as a consolidation pattern before price resumes the previous uptrend. The formation of this price pattern begins with price pulling away from what eventually will be a horizontal support line. This consolidation pattern continues as price bounces off of an uptrending support line and [...]

The Descending Triangle Chart Pattern is a bearish consolidation formation that when completed resumes the previous downtrend. This price pattern displays a horizontal support line and a downward sloping resistance. As the support line converges towards the resistance line the resulting pattern is an Ascending Triangle. This pattern completes when price action breaks out below the [...]

The Pennant Pattern is a short lived consolidation pattern characterized by converging support and resistance lines. These patterns can be either bullish or bearish depending on the direction of the prevailing trend. The Pennant Pattern consists of a fairly narrow trading range and completes with a breakout to the upside for Bullish Pennants or to the [...]

The Rising Wedge Chart Pattern is a bearish continuation formation characterized by converging support and resistance lines moving in the same direction but opposite to the prevailing trend. The Rising Wedge represents a temporary interruption in the previous downtrend as price consolidates in anticipation of resuming the trend. Wedge patterns are similar to triangle patterns [...]