Chart Patterns Cheat Sheet
Visual reference for the chart patterns that have documented edge.
Quick reference table
| Ascending triangle | Bullish continuation. Flat resistance, rising support. Breakout direction: up. |
| Descending triangle | Bearish continuation. Flat support, falling resistance. Breakout: down. |
| Symmetrical triangle | Continuation in prior trend direction. Watch volume. |
| Bull flag | Strong move up + tight downward channel. Continuation up. |
| Bear flag | Strong move down + tight upward channel. Continuation down. |
| Pennant | Like flag but symmetrical wedge. Strong continuation pattern. |
| Rising wedge | Bearish — converging upward lines, often precedes drop. |
| Falling wedge | Bullish — converging downward lines, often precedes rally. |
| Head and shoulders | Bearish reversal at tops. 3 peaks, middle highest. |
| Inverse head & shoulders | Bullish reversal at bottoms. 3 troughs, middle lowest. |
Quick setups
- Bull flag entry: Identify strong move up + tight pullback flag + clean break above flag with volume = entry. Target = pole length projected from breakout.
- Ascending triangle: Wait for clean close above flat resistance with volume expansion. Stop just below resistance (now support). Target = triangle height.
- Head and shoulders: Wait for break of neckline with volume. Stop above right shoulder. Target = head-to-neckline distance projected from neckline break.