Technical analysis is one of the best tools traders can use to spot shifts within the market, allowing them to predict support and resistance levels within a predictable timeframe.

There are many different continuation and reversal patterns to look out for when reading the stock charts. This list of 17 chart patterns are essential, and knowing them will give an investor a trading edge, so it pays to keep these close. Looking for these chart patterns every day, studying the charts will allow the trader to learn and recognize technical trading strategies in the data and the implications that these patterns imply.

Click the desired chart to get full details on how technical traders use them.

Ascending Triangle
Ascending Triangle
Pattern
Ascending Triangle
Symmetrical Triangles
Symmetrical Triangles
Patterns
Symmetrical Triangles
Descending Triangle
Descending Triangle
Pattern
Descending Triangle
Bump and Run
Bump and Run
Pattern
Bump and Run
Cup and Handle
Cup and Handle
Pattern
Cup and Handle
Double Bottom
Double Bottom
Pattern
Double Bottom
Double Top
Double Top
Pattern
Double Top
Falling Wedge
Falling Wedge
Pattern
Falling Wedge
Flag
Flag
Pattern
Flag
Pennant
Pennant
Pattern
Pennant
Head and Shoulders Top
Head and Shoulders Top
Pattern
Head and Shoulders Top
Inverse Head and Shoulders
Inverse Head and Shoulders
Pattern
Inverse Head and Shoulders
Rounding Bottom
Rounding Bottom
Pattern
Rounding Bottom
Price Channel
Price Channel
Pattern
Price Channel
Triple Top Reversal
Triple Top Reversal
Pattern
Triple Top Reversal
Triple Bottom Reversal
Triple Bottom Reversal
Pattern
Triple Bottom Reversal

Traders who use technical analysis study chart patterns to analyze stocks or indexes price action in accordance with the shape chart creates. By understanding the trends, a trader can confirm an accurate short-term price movement. For example, if the chart represents an ascending triangle, the price will continue to bounce off the trendlines until the convergence, where the price breaks out to the upside. Each pattern has its own set of rules and strategies to interpret. The 17 chart patterns listed in this resource are one’s technical traders can turn to over and over again, allowing them to take advantage trend reversals and future price movement.

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Get Ahead of the Curve

Stock chart patterns, when identified correctly, can be used to identify a consolidation in the market, often leading to a likely continuation or reversal trend. Traders may use these trendlines to forecast price patterns that can be traded for profit.


Chris Douthit
Chris Douthit

Chris Douthit, MBA, CSPO, is a former professional trader for Goldman Sachs and the founder of OptionStrategiesInsider.com. His work, market predictions, and options strategies approach has been featured on NASDAQ, Seeking Alpha, Marketplace, and Hackernoon.