Chart Patterns

The classic chart patterns traders look for, each with a clear diagram: how they form, where the key line is, and when they’re considered confirmed. Reversal and continuation patterns side by side.

Head and shoulders patternHead and shouldersThree peaks and a necklineDouble top patternDouble topM and W reversalsCup and handle patternCup and handleRounded base, small pullbackBull flag patternBull flagSharp move, short pauseRising wedge patternRising wedgeConverging lines, same slope

Chart patterns cheat sheet

PatternType
Head and shouldersReversal (bearish)
Inverse head and shouldersReversal (bullish)
Double topReversal (bearish)
Double bottomReversal (bullish)
Cup and handleContinuation (bullish)
Bull flagContinuation (bullish)
Bear flagContinuation (bearish)
Rising wedgeUsually bearish
Falling wedgeUsually bullish

Reversal vs continuation patterns

Reversal patterns (head and shoulders, double tops and bottoms) suggest a trend may be ending. Continuation patterns (flags, cup and handle) suggest a pause before the trend carries on. Wedges can be either, depending on where they form.

Breakouts and confirmation

Most chart patterns are only considered complete when the price closes beyond a key line: the neckline, the rim, or the edge of the flag or wedge. Before that, the pattern is just a possibility. False breakouts, where price pokes through and then comes back, are common, which is why many traders wait for a close rather than a touch.

Chart patterns vs candlestick patterns

Chart patterns are built from many candles and describe the bigger shape of the price. Candlestick patterns use one to three candles. Traders often combine them, for example looking for a bullish candle pattern as price tests a double bottom.

Drawing it on TradingView

Use the Trend Line tool (shortcut Alt + T) for necklines and wedge lines, the Parallel Channel tool for flags, and the Patterns group in the left toolbar, which includes a head and shoulders drawing tool. Practise on past charts with Bar Replay, and see all TradingView shortcuts.

No pattern is a guarantee. Patterns describe how buyers and sellers behaved; they don’t predict the next move on their own, and they fail often. Traders usually wait for confirmation, look at where the pattern forms (after a trend, at support or resistance), and decide their exit before they enter. Size the trade with the position size calculator.

FAQ

What are chart patterns?
Recognisable shapes formed by price over many candles, such as head and shoulders, double tops, flags and wedges, used to judge whether a trend may reverse or continue.
What is the difference between reversal and continuation patterns?
Reversal patterns suggest the current trend may end; continuation patterns suggest a pause before the trend resumes.
When is a chart pattern confirmed?
Usually when the price closes beyond the pattern's key line, such as the neckline of a head and shoulders or the edge of a flag.

More free TradingView tools

Candlestick PatternsCheat sheet of the main candlestick patterns, with diagrams. Support and ResistanceHow price levels act as floors and ceilings. Trend LinesHow to draw trend lines and channels correctly. Fibonacci CalculatorFib retracement and extension levels from a swing high and low.
TradingView — the fastest way to follow markets
Watchlist BuilderAll GuidesWatchlist GuideTradingView PlansIndicatorsShortcutsBar ReplayAlert BuilderPine ColorsWatchlist CleanerCalculatorsWorld Market HoursForex HoursStock Market HoursMarket HolidaysFed Meeting DatesCPI & NFP DatesPosition Size CalculatorCandlestick PatternsChart ColorsSymbol FormatAboutPrivacyTermsContact

ChartWatch is an independent tool and is not affiliated with, endorsed by, or officially connected to TradingView, Inc. “TradingView” is a trademark of its respective owner. Exchange, broker and platform names are trademarks of their respective owners.