Chart Patterns
Head And Shoulder
🔹 Meaning:
A Head and Shoulders pattern signals that a stock's
uptrend is likely to reverse and go down.
🔹 Structure:
Left Shoulder: Price rises, then falls.
Head: Price rises higher than the left shoulder, then falls
again.
Right Shoulder: Price rises again, but lower than the
head, then drops.
Neckline: A support line drawn under the lows between
the shoulders and the head.
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Inverted Head And Shoulder
🔹 Meaning:
An Inverted Head and Shoulders pattern suggests the
stock may stop falling and start a new uptrend.
🔹 Structure:
Left Shoulder: Price drops, then rises.
Head: Price drops lower than the left shoulder,
then rises again.
Right Shoulder: Price drops again, but not as low
as the head, then moves up.
Neckline: A resistance line drawn over the highs
between shoulders and head.
2
Double Top
✅ Meaning:
The price is unable to break resistance twice, showing
weakness. A break below the neckline is a signal to sell
✅ Structure:
Price rises to a high, then pulls back
Rises again to the same high level
Forms an "M" shape with a neckline (support line)
3
Double Bottom
✅ Meaning:
The price is finding strong support and may reverse
up. A break above the neckline is a signal to buy.
✅ Structure:
Price falls to a low, then rises
Falls again to the same level
Forms a "W" shape with a neckline (resistance line)
4
Flag And Pole
✅ Structure:
Pole – Strong upward move
Flag – Small downward or sideways channel (sloping)
✅ Meaning:
Short-term rest before the trend continues upward.
Traders enter after price breaks above the flag.
5
Inverted Flag And Pole
✅ Structure:
Pole – Strong downward move
Flag – Small upward or sideways channel (sloping)
✅ Meaning:
Temporary pause before the trend continues
downward. Traders enter after price breaks below the
flag.
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📐 Symmetrical Triangle
Formation: Jab price higher highs aur lower lows
banata hai, aur dono trendlines (upper aur lower)
ek dusre ke kareeb converge karte hain.
Signal: Consolidation ka phase hota hai, breakout
dono taraf ho sakta hai (up ya down).
Breakout Direction: Trend continuation ya reversal
dono ho sakta hai – volume pe dhyan dena zaroori
hai.
Entry: Breakout candle ke high/low ke baad entry
lena.
Stop Loss: Pattern ke opposite trendline ke thoda
bahar.
Target: Pattern ka height (widest part) breakout
point se project karna.
8
📈 Ascending Triangle
Formation: Upper trendline horizontal hoti hai
(resistance) aur lower trendline rising hoti hai.
Signal: Bullish pattern – buyers price ko gradually
higher push kar rahe hain.
Breakout Direction: Mostly upside breakout hota
hai.
Entry: Jab price upper resistance ko breakout kare
(with strong volume).
Stop Loss: Pattern ke neeche ya recent swing low
ke thoda neeche.
Target: Triangle ki height breakout point se upar
project karo.
8
📉 Descending Triangle
Formation: Lower trendline horizontal hoti hai
(support) aur upper trendline falling hoti hai.
Signal: Bearish pattern – sellers price ko pressure
mein rakh rahe hain.
Breakout Direction: Mostly downside breakout
hota hai.
Entry: Jab price support ke neeche breakdown kare
(with volume).
Stop Loss: Pattern ke upar ya recent swing high ke
thoda upar.
Target: Triangle ki height breakout point se neeche
project karo.
8
V Shape
✅ V-Shape Recovery (Pattern)
Looks like the letter V.
Sharp fall, then a quick rise.
Indicates strong buying after panic selling.
No long consolidation at bottom.
Seen in bullish reversals.
✅ Inverted V-Shape (Pattern)
Looks like an upside-down V.
Sharp rise, followed by a quick fall.
Indicates strong selling after a rally.
No proper base formation at top.
Seen in bearish reversals.
9
U Shape
✅ U-Shape Pattern
Chart looks like the letter U.
Slow fall, then a gradual rise.
Bottom is rounded, not sharp.
Indicates accumulation at the bottom.
Seen in bullish reversals with stability and strength.
10
U Shape
✅ U-Shape Pattern
Chart looks like the letter U.
Slow fall, then a gradual rise.
Bottom is rounded, not sharp.
Indicates accumulation at the bottom.
Seen in bullish reversals with stability and strength.
10
Cup & Handle
1. Cup:
U-shaped price movement
Shows consolidation after an uptrend
2. Handle:
Small pullback or sideways move
Forms after the cup
3. Breakout:
Price breaks above handle resistance
Indicates trend continuation (bullish)
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