10 Surefire Binary Chart Patterns
Essential Patterns for Binary Options Trading
1. Double Top
The Double Top pattern is a bearish reversal pattern that occurs after an uptrend. It signifies the
weakening of the upward movement, with two peaks forming at the same resistance level. After the
second peak, the price typically falls below the neckline, confirming the reversal.
2. Double Bottom
The Double Bottom pattern is the opposite of the Double Top. It is a bullish reversal pattern that
forms after a downtrend, with two troughs at the same support level. After the second trough, the
price typically rises above the neckline, confirming a reversal upward.
3. Head and Shoulders
The Head and Shoulders pattern is a bearish reversal pattern that forms after an uptrend. It has
three peaks: a higher central peak (head) and two lower side peaks (shoulders). When the price
breaks below the neckline, it signals a potential move downward.
4. Inverse Head and Shoulders
The Inverse Head and Shoulders is a bullish reversal pattern that forms after a downtrend. It
consists of three troughs: a lower central trough (head) and two higher side troughs (shoulders).
Once the price breaks above the neckline, it signals a reversal to the upside.
5. Rising Wedge
The Rising Wedge is a bearish continuation pattern that occurs in a downtrend or reversal after an
uptrend. It forms when the price action narrows upward with converging trendlines, indicating
weakening momentum. A break below the lower trendline signals a potential downward move.
6. Falling Wedge
The Falling Wedge is a bullish continuation or reversal pattern. It forms during a downtrend when
price action narrows downward with converging trendlines. A break above the upper trendline
signals a potential upward move.
7. Bullish Flag
The Bullish Flag pattern is a continuation pattern that forms after a sharp upward move. It shows a
brief consolidation in the form of a downward-sloping channel, followed by a breakout to the upside.
This pattern suggests strong upward momentum.
8. Bearish Flag
The Bearish Flag is the opposite of the Bullish Flag and appears after a sharp downward move. It
forms a brief consolidation in an upward-sloping channel before breaking downward. This pattern
indicates strong bearish momentum.
9. Bullish Engulfing
The Bullish Engulfing pattern is a two-candle reversal pattern where a smaller bearish candle is
followed by a larger bullish candle that completely engulfs the first. This signals a potential reversal
to the upside after a downtrend.
10. Bearish Engulfing
The Bearish Engulfing pattern is the opposite of the Bullish Engulfing. It consists of a smaller bullish
candle followed by a larger bearish candle that engulfs the first. This signals a potential reversal to
the downside after an uptrend.
