Chart Patterns Guide with Win Probability
- Symmetrical Triangle
Type: Continuation
Direction: Neutral (Breakout in either direction)
Win Probability: Medium
Description: Converging trendlines. Price makes lower highs and higher lows. Wait for breakout confirmation.
- Ascending Triangle
Type: Continuation
Direction: Bullish
Win Probability: High
Description: Flat resistance with rising support. Breakout usually confirms a strong uptrend.
- Rounding Bottom
Type: Reversal
Direction: Bullish
Win Probability: Medium
Description: U-shaped pattern with breakout above resistance. Volume grows on the right side.
- Bullish Flag
Type: Continuation
Direction: Bullish
Win Probability: Very High
Description: Strong uptrend followed by downward sloping consolidation. Breakout resumes uptrend.
- Rising Channel
Type: Continuation
Direction: Bullish short-term, Bearish long-term
Win Probability: Medium
Description: Parallel upward sloping lines. Watch for potential downside breakout.
- Rising Wedge
Type: Reversal
Direction: Bearish
Win Probability: High
Description: Converging upward sloping lines. Breakdown signals a reversal.
- Double Top
Type: Reversal
Direction: Bearish
Win Probability: High
Description: Two peaks near same level. Confirmation comes from a break below the neckline.
- Double Bottom
Type: Reversal
Direction: Bullish
Win Probability: High
Description: Two troughs at same level. Breakout above neckline confirms reversal.
- Flat Channel
Type: Continuation / Neutral
Direction: Neutral
Win Probability: Low
Description: Sideways price movement. Breakout direction confirms trend.
- Bullish Inverse Head and Shoulders
Type: Reversal
Direction: Bullish
Win Probability: Very High
Description: Three troughs, with the middle one being the deepest. Breakout confirms reversal.
- Falling Channel
Type: Continuation / Reversal
Direction: Bullish
Win Probability: Medium
Description: Price moves within a downward channel. Breakout signals bullish reversal.
- Falling Wedge
Type: Reversal
Direction: Bullish
Win Probability: High
Description: Price narrows within downward slope. Breakout indicates reversal.
- Rounding Top
Type: Reversal
Direction: Bearish
Win Probability: Medium
Description: Inverted U-shape. Breakdown confirms bearish reversal.
- Cup and Handle
Type: Continuation / Reversal
Direction: Bullish
Win Probability: Very High
Description: U-shape followed by small pullback (handle). Breakout signals strong uptrend.
- Pennant
Type: Continuation
Direction: Depends on prior trend
Win Probability: High
Description: Small symmetrical triangle after strong move. Breakout follows trend.
- Triple Top / Bottom
Type: Reversal
Direction: Bearish/Bullish
Win Probability: Medium
Description: Three peaks or troughs. Confirmation after neckline break.
- Broadening Wedge
Type: Uncertain / Volatile
Direction: Volatile
Win Probability: Low to Medium
Description: Expanding highs and lows. Harder to trade. Indicates uncertainty.
