Chart Patterns.

A sharp vertical surge (the pole) then a brief consolidation in a slightly downward-sloping PARALLEL channel (the flag). Both channel rails are parallel — not converging. Volume contracts in the flag, then expands sharply on the breakout.

Inverse of the bull flag. Sharp drop (pole) then a brief consolidation in a slightly upward-sloping PARALLEL channel (the flag) — a corrective bounce against the downtrend. Both channel rails slope upward in parallel.

Like a flag but the consolidation is a CONVERGING TRIANGLE — the key difference. After the pole, price makes lower highs AND higher lows, compressing to an apex. Unlike a flag's parallel rails, the pennant's rails converge.

A rounded U-shaped base (the cup) followed by a brief, controlled pullback on the right rim (the handle), then a breakout above the rim. The cup = gradual accumulation. The handle = final shakeout before the breakout. Popularized by William O'Neil.

Flat top resistance (sellers defending a price ceiling) with rising lows (buyers getting more aggressive on each dip). The ceiling gets tested repeatedly but each pullback is at a higher price. Eventually supply at the resistance runs out.

Flat bottom support (buyers defending a price floor) with declining highs (sellers getting more aggressive on each bounce). The floor is tested repeatedly but each rally is weaker. Eventually the floor gives way.

Lower highs AND higher lows — both trendlines converge toward an apex. Neither bulls nor bears in control; price coils tighter with each oscillation. No directional bias until breakout. Note the candles shrink in size as the pattern progresses.

Both trendlines slope upward but converge — the lower support rises FASTER than the upper resistance, so the channel narrows. Price grinds higher but the range is visibly shrinking. Sellers gaining control despite the upward drift.

Both trendlines slope downward but converge — the upper resistance falls FASTER than the lower support, so the channel narrows. Despite the downward drift, sellers are losing momentum. Bullish breakout when price pushes above the upper trendline.

Price consolidates between two flat, parallel horizontal levels. Classic basing structure. In an uptrend it is a rest before continuation; in a downtrend a pause before the next leg. Breakout direction determines the trade.

Three peaks where the middle (head) is the tallest, and the two shoulders are roughly equal in height. The neckline connects the two valleys between the peaks. Confirmed when price closes below the neckline.

The bullish mirror of H&S. Three troughs where the middle is the deepest and the two shoulders are roughly equal. Forms after a sustained downtrend. Break above the neckline (resistance connecting the highs between troughs) confirms the reversal.

Price hits the same resistance level twice and fails — the M shape. The second peak failing to make a new high signals buyer exhaustion at that level. Confirmed on a close below the valley between the two peaks.

Price tests the same support level twice and holds — the W shape. The second trough holding confirms strong buying interest. Confirmed on a break above the peak between the two troughs.

A slow, gradual curved U — the saucer. Unlike a double bottom which has sharp V-shaped bounces, the rounding bottom forms gradually over weeks to months as sentiment quietly shifts from distribution to accumulation. Volume is typically lowest at the base.

Three separate failed attempts to break through the same resistance level. Each failure shows sellers in control at that price. Stronger conviction signal than a double top because the resistance has held three times.

Three bounces from the same support level with buyers defending the floor each time. Stronger conviction signal than a double bottom because the support has held three times.

Small body near the top of the session range, lower wick at least 2x body length, little or no upper wick. Sellers pushed price far lower during the session but buyers fought back to close near the open. Appears at downtrend bottoms or key support levels.

Small body near the bottom of the session range, upper wick at least 2x body length, little or no lower wick. Buyers pushed price sharply higher but sellers rejected the move and drove it back near the open. Appears at uptrend tops or resistance.

Open and close are equal (or nearly so) — a cross shape. Three main types: Standard (equal wicks, pure indecision), Gravestone (long upper wick at a top — buyers rejected), Dragonfly (long lower wick at a bottom — sellers rejected). Always read in context of the prior trend.

A small red candle (Day 1) followed by a large green candle (Day 2) whose body completely contains the prior red body. Bulls overwhelmed sellers entirely. One of the most reliable two-candle reversal signals, especially at key support.

A small green candle (Day 1) followed by a large red candle (Day 2) whose body completely contains the prior green body. Sellers overwhelmed buyers entirely. Appears at uptrend tops or resistance with strong volume on the red candle.

Three candles at a downtrend bottom. Day 1: large red. Day 2: small-bodied star (hesitation). Day 3: large green closing at least 50% into Day 1 body. Sellers dominated Day 1, showed uncertainty on Day 2, buyers took over on Day 3.

The bearish mirror of Morning Star. Day 1: large green. Day 2: small star at the top (last push from buyers). Day 3: large red closing at least 50% into Day 1 body. Signals exhaustion at the top of a run.

A full-body candle with NO wicks. Price moved in one direction the entire session with zero pushback. Bullish: opened at the low, closed at the high. Bearish: opened at the high, closed at the low. The strongest single-candle conviction signal.