Did you know there are about 20 different types of traditional patterns?
They come in different shapes and sizes but they all share something in common : they are well-known shapes you can draw in your price chart.
Below you’ll find the ultimate database with every single classic pattern (you can find other types of pattern here: candlestick patterns or harmonic patterns). You’ll find detailed articles for each going into detailed explanation, giving you examples and data for each pattern. No more doubt about what makes a specific pattern and how well it works.
Moreover, this extensive cheat sheet will definitely give you an edge and let you understand and recognize every pattern. Plus at PatternsWizard, our absolute focus is to bring you data-driven performance statistics. So for most classic patterns (articles below) you’ll find data about each pattern’s performance statistics and reliability (how often they confirm, reach the target or stop, how often they appear, …) to adjust your trading strategy of financial markets.
Classic, traditional or common patterns refer to the same kind of patterns.
Classic chart patterns are aggregates of price drawing some well known forms.
They often form around support or resistance levels. These trend lines indicate areas where traders were interested in exchanging their assets holding and time + trades will draw these patterns.
They are believed to be great indicators of market sentiment. Let’s consider for example an ascending triangle (as illustrated on the right). As time goes on traders step in to repeatedly sell at the same given high price (the horizontal resistance) and new buyers step in to repeatedly buy at new higher prices (the ascending trendline). It shows upward pressure and an expected move is a break up of the horizontal resistance level. Keep in mind technical analysis is probabilistic (hence why we created PatternsWizard) and it can sometimes not break out or do a false breakout.
Some of the best known classical chart patterns are the head and shoulders pattern, the wedge pattern, the double top or triple bottom. They can form as a bullish pattern or a bearish pattern. For example a bearish reversal pattern (such as an inverted H&S) in an upper trend is a strong hint for a trend reversal to the down side. Same can apply to a bullish reversal pattern (in reverse).
Depending on the pattern (each pattern can tell a different story), they can be a hint for :
Regardless of the pattern(s) you’d like to hunt and trade, you’ll need a reliable source to chart your markets. TradingView is the best solution for you! As you may have noticed, most of our charts on the site are taken from charts created on TradingView. Click here to check TradingView for free now!
Patterns help you better predict and understand what the markets will do. Learn about classic patterns so you can get an edge in the market and profit from your trading.
Want to go into the details of a specific pattern? You’re at the right place!
These patterns often have very illustrative names. Feel free to discover the detailed article for each classic pattern right below :
The channel pattern is a technical analysis pattern that capitalizes on the trending tendencies of the market. It is also known as price channel. This pattern appears in the market when price oscillates between two lines with the same slope. It can be a rising channel or a falling channel. If you’re wondering where to […]
The Flag pattern is a continuation pattern. Its formation is a strong sign of consolidation (price stops to trend for a while to build back momentum). It is identifiable with 3 components: the flagpole, the flag (the consolidation part) and the continuation. The flag pattern is a powerful pattern used in technical analysis. It is […]
The broadening top pattern is a bearish reversal pattern. It’s tougher to trade than other classical patterns as lows and highs get taken out one by one. It can also be called the “megaphone pattern”. What is the broadening top pattern? The broadening top pattern is a bearish reversal pattern used in technical analysis. The […]
The triple top pattern is a bearish reversal pattern. It’s created when price bounces off resistance 3 time at similar levels. It’s a sign the sellers are coming in the market to avoid the security price to shoot higher. What is a Triple Top pattern? Triple top is a bearish pattern A triple top or […]
The Rectangle pattern is bullish or bearish depending on the direction of the breakout It forms when price oscillates between a horizontal support and resistance. What is the Rectangle pattern? The rectangle formation is a classical technical analysis pattern shown by horizontal lines describing important support and resistance. Traders can successfully trade it by buying […]
The triple bottom pattern is a bullish reversal pattern. It’s created when price bounces off support 3 time at similar levels. It’s a sign the buyers are coming in the market to avoid the security price to drop lower. What is the Triple Bottom pattern? The Triple Bottom chart pattern is used in technical analysis. […]
Recognizing chart patterns is one of the most reliable techniques for trading the market. There are various chart formations that traders can observe and apply to their arsenal. Today, we will go through one of the most dependable chart patterns: the head and shoulders pattern. It is easy to spot the head and shoulders chart […]
The pennant pattern is a continuation pattern. The pennant shows a time of consolidation before to (likely) continue of the same trend with a breakout. The consolidation period should have lower volume and the breakouts should occur on higher volume. What is the Pennant pattern? Some traders use the pennant pattern as an entry pattern […]
Out of all the chart patterns that exist in a bullish market, the falling wedge is an important pattern for new traders. It is a very extreme bullish pattern for all instruments in any market in any trend. Depending on the educator and educational material you’ve read on chart patterns, wedge patterns may or may […]
Traders apply charts when studying various patterns in market trends, including the inverse head and shoulders pattern. This pattern is characterized by three troughs (both the upward head and shoulders have peaks), with the middle trough being the deepest. An inverse head and shoulders pattern can appear in all markets, all the time. It is […]
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"All you need is one pattern to make a living."
- Linda Raschke
