Chart patterns are a core component of technical analysis, helping traders identify market structure, momentum shifts, and high-probability price setups.
This chart pattern library presents a structured overview of the most commonly used chart patterns in crypto and forex trading. The table below allows for quick comparison, while each pattern links to a dedicated guide covering formation, confirmation signals, and real-market examples.
Rather than grouping patterns strictly by continuation or reversal, this library focuses on practical pattern recognition and market application.
Chart Patterns Overview
The following tables provides a high-level comparison of popular chart patterns used across different market conditions. Click any pattern to access its full guide and trading explanation.
Bull Flag
A bull flag forms after a strong impulsive rally, followed by a tight pullback or channel that holds above key support.
Confirmation typically comes from a clean close above flag resistance (a retest often improves reliability).
Read the full Bull Flag guide →
Bear Flag
A bear flag appears after a strong sell-off, then price pauses with a tight rebound that fails to reclaim resistance.
Confirmation is usually a close below flag support (a breakdown retest from below is often the cleaner entry).
Read the full Bear Flag guide →
Ascending Triangle
An ascending triangle forms when higher lows press into a flat resistance level, showing buyers stepping in earlier.
In an uptrend it often acts as continuation, while in a downtrend it can fail and flip into a reversal setup.
Read the full Ascending Triangle guide →
Descending Triangle
A descending triangle forms when lower highs compress into flat support, indicating sellers are becoming more aggressive.
In a downtrend it often continues lower, but in an uptrend it may fail and break upward as a reversal signal.
Read the full Descending Triangle guide →
Rising Wedge
A rising wedge shows price making higher highs and higher lows, but with tightening range and weakening momentum.
It frequently breaks downward in an uptrend (bearish reversal), but in a downtrend it can break upward as a reversal as well.
Read the full Rising Wedge guide →
Falling Wedge
A falling wedge compresses downward with lower highs and lower lows, often signaling selling pressure is fading.
It commonly breaks upward in a downtrend (bullish reversal), but in an uptrend it can break down as a momentum exhaustion move.
Head & Shoulders
Head & Shoulders is a classic bearish reversal pattern that often forms after an uptrend when buyers lose momentum.
Confirmation is typically a neckline break and failure to reclaim it (retest rejection often strengthens the setup).
Inverse Head & Shoulders
Inverse H&S is a bullish reversal structure that often appears after a downtrend when sellers start losing control.
Confirmation comes from a neckline breakout and holding above it (a successful retest improves probability).
Double Top
A double top signals potential bearish reversal when price fails twice at a similar high and momentum weakens.
Confirmation usually requires a break below the neckline/support level (retest rejection is often cleaner).
Double Bottom
A double bottom signals potential bullish reversal when price holds a similar low twice and selling pressure fades.
Confirmation typically comes from a neckline breakout and holding above it (a retest often improves structure).
How Market Context Changes Chart Patterns
Chart patterns should never be traded by name alone. The same pattern can produce very different outcomes depending on the prior trend, volatility, and overall market structure.
In this library, patterns are classified based on their most common behavior as continuation or reversal structures. The Next Move column highlights the most probable directional outcome after confirmation, not a guaranteed result.
Always combine pattern structure with confirmation signals, invalidation levels, and proper risk management before entering any trade.
Chart Patterns vs Market Context
| Pattern | Market Context | Classification | Next Move |
|---|---|---|---|
| Rising Wedge | Downtrend | Continuation | Down ↓ |
| Rising Wedge | Uptrend | Reversal | Down ↓ |
| Falling Wedge | Uptrend | Continuation | Up ↑ |
| Falling Wedge | Downtrend | Reversal | Up ↑ |
| Ascending Triangle | Uptrend | Continuation | Up ↑ |
| Ascending Triangle | Downtrend | Reversal | Up ↑ |
| Descending Triangle | Downtrend | Continuation | Down ↓ |
| Descending Triangle | Uptrend | Reversal | Down ↓ |
| Bull Flag | Uptrend | Continuation | Up ↑ |
| Bear Flag | Downtrend | Continuation | Down ↓ |
| Double Top | Uptrend | Reversal | Down ↓ |
| Double Bottom | Downtrend | Reversal | Up ↑ |
| Head & Shoulders | Uptrend | Reversal | Down ↓ |
| Inverse Head & Shoulders | Downtrend | Reversal | Up ↑ |
Chart patterns are most effective when used as part of a structured trading approach, not as standalone signals. Use this library as a reference to compare patterns, understand market context, and apply confirmation and risk management before making any trading decision.
Frequently Asked Questions
What are chart patterns?
Recurring price formations used to identify potential continuation or reversal setups.
Do chart patterns work in crypto trading?
Yes, but high volatility makes confirmation and market context essential.
Are chart patterns always continuation or reversal?
No. Their behavior depends on the prior trend and confirmation.
Which timeframe is best for chart patterns?
Higher timeframes are more reliable; lower timeframes require stricter confirmation.
Can chart patterns fail?
Yes. Lack of confirmation, low volume, or strong news events often cause failures.
Disclaimer: This content is for educational purposes only and does not constitute financial advice. Chart patterns are probabilistic tools, not guarantees. Always manage risk and do your own research.
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