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Chart patterns: head and shoulders, double tops, triangles, flags

The most common reversal and continuation patterns, where they confirm and how to measure targets.

Reversal patterns

Head and shouldersThree peaks with the middle one highest; confirmed by a close below the neckline. Target = head-to-neckline distance projected down from the break.
Inverse head and shouldersThe mirror image at a low, signalling a reversal up.
Double top / bottomTwo failures at the same price zone; confirmed when the middle low (high) breaks.
Rising / falling wedgeA converging channel sloping up (often breaks down) or down (often breaks up).

Continuation patterns

Flags and pennantsA sharp move (the pole) followed by a short pause; target ≈ the pole length from the breakout.
Ascending / descending / symmetrical trianglePrice coils between converging lines; a break in the prior trend direction is more likely.
RectangleSideways between parallel lines; target = the rectangle height.
Cup and handleA rounded bottom then a small pullback (the handle) before breaking the cup's rim.

How to trade them

  1. Treat a pattern as complete only when a candle closes beyond the breakout level, ideally on rising volume.
  2. Enter on the break or on the retest of the breakout level.
  3. Stop on the other side of the pattern (for example above the right shoulder).
  4. Use the measured move as the maximum target and take partial profit earlier.
Watch outThe smaller the pattern and the lower the timeframe, the less reliable it is. Don't force price into a pattern.

Try it on a chart

Educational content only, not investment advice. Practise on a demo account before using real money.