Chart Pattern Cheat Sheet: All Patterns in One Guide

This is your complete reference guide to every major chart pattern. Bookmark it and return whenever you spot a pattern you’re not sure about. Each pattern includes the structure, signal type, and how to trade it.

Reversal Patterns

Head and Shoulders (Bearish)

Three peaks — middle highest. Break below neckline = sell. Target = head-to-neckline distance down.

Inverse Head and Shoulders (Bullish)

Three troughs — middle lowest. Break above neckline = buy. Target = head-to-neckline distance up.

Double Top (Bearish)

Two peaks at same level (“M” shape). Break below trough = sell. Target = peak-to-trough distance down.

Double Bottom (Bullish)

Two troughs at same level (“W” shape). Break above peak = buy. Target = trough-to-peak distance up.

Rising Wedge (Bearish)

Both lines slope up, converging. Break below lower trendline = sell. Target = wedge height down.

Falling Wedge (Bullish)

Both lines slope down, converging. Break above upper trendline = buy. Target = wedge height up.

Continuation Patterns

Bull Flag

Sharp up move (pole) + slight down channel (flag). Break above = buy. Target = pole length up.

Bear Flag

Sharp down move + slight up channel. Break below = sell. Target = pole length down.

Ascending Triangle (Bullish)

Flat resistance + rising support. Break above resistance = buy. Target = triangle height up.

Descending Triangle (Bearish)

Flat support + falling resistance. Break below support = sell. Target = triangle height down.

Symmetrical Triangle (Neutral)

Converging lines. Trade breakout direction. Target = widest point of triangle.

Pennant

Like a small symmetrical triangle after a sharp move. Continuation. Target = pole length.

Universal Rules

• Always wait for breakout confirmation (candle close beyond the pattern boundary)
• Volume should increase on breakout
• Higher timeframe patterns are more reliable
• Set stops just beyond the pattern boundary
• Use measured move targets for realistic profit expectations
• Combine with other analysis (support/resistance, indicators) for highest probability

Print this cheat sheet and keep it next to your trading screen. Reference it every time you spot a potential pattern on Mal.io charts.