Chart Patterns Cheat Sheet: Quick Reference

This is a quick reference, not a textbook. Bookmark it, and when you spot a shape on a chart and want to confirm what it is and what to expect, scan down to it. Every pattern below includes how to spot it fast, what it signals, and what the breakout should look like. Each one links to a full breakdown when you want to go deeper.

Chart patterns split into two families. Continuation patterns are pauses in a trend that usually resolve in the same direction the trend was already going. Reversal patterns form at the end of a trend and signal a likely turn. Knowing which family you're looking at is half the battle.

Two rules before any pattern: First, a pattern is only as good as the trend around it. Second, wait for the breakout to confirm with volume before you act. Patterns fail constantly without volume behind them.

Continuation Patterns

These say the trend is taking a breather and will probably keep going. They're where you look to join a move that's already proven itself.

Bull Flag

Spot it A sharp move up (the pole), then a tight, slightly downward drift (the flag) on shrinking volume.

Signals Bullish continuation. The pause is profit-taking, not a top.

Breakout Up through the top of the flag on rising volume. Target is the pole length projected from the breakout.

Full guide: how to trade the bull flag pattern.

Bear Flag

Spot it A sharp drop, then a tight upward drift on light volume. The mirror image of a bull flag.

Signals Bearish continuation. The bounce is weak buyers getting trapped.

Breakout Down through the bottom of the flag on rising volume. Target is the prior drop projected lower.

Pennant

Spot it A strong move, then a small symmetrical triangle that converges to a point on falling volume.

Signals Continuation in the direction of the move that preceded it.

Breakout In the trend's direction as the triangle runs out of room. Volume should expand on the break.

Ascending Triangle

Spot it A flat ceiling of resistance with a rising line of higher lows pushing up into it.

Signals Usually bullish. Buyers keep paying more while sellers hold one price.

Breakout Up through the flat ceiling. The longer the buildup, the stronger the break tends to be.

Descending Triangle

Spot it A flat floor of support with a falling line of lower highs pressing down into it.

Signals Usually bearish. Sellers keep accepting less while buyers defend one price.

Breakout Down through the flat floor, often with a sharp move once the level gives way.

Cup and Handle

Spot it A rounded U-shaped base (the cup), then a small downward drift on the right side (the handle).

Signals Bullish continuation after a long base. A favorite of breakout traders.

Breakout Up through the handle's high on strong volume. Target is the cup's depth added to the breakout.

Reversal Patterns

These form when a trend is running out of gas. They warn that the prevailing direction is about to flip, which makes them useful both for taking profits and for catching a turn.

Head and Shoulders

Spot it Three peaks: a higher middle peak (head) between two lower peaks (shoulders), sitting on a neckline.

Signals Bearish reversal at the top of an uptrend. Buyers failed to make a new high on the third push.

Breakout Down through the neckline on rising volume. Target is the head-to-neckline distance projected down.

Full guide: the head and shoulders pattern.

Inverse Head and Shoulders

Spot it Three troughs flipped upside down: a lower middle trough between two higher ones, under a neckline.

Signals Bullish reversal at the bottom of a downtrend.

Breakout Up through the neckline. Same measured-move logic, projected upward.

Double Top

Spot it Two peaks at roughly the same price (an M shape) with a dip between them.

Signals Bearish reversal. Price hit a ceiling twice and could not break through.

Breakout Confirmed when price breaks below the middle dip. That level becomes resistance.

Double Bottom

Spot it Two troughs at roughly the same price (a W shape) with a bounce between them.

Signals Bullish reversal. Sellers failed to push lower on the second attempt.

Breakout Confirmed when price breaks above the middle bounce on volume.

How to Use This Cheat Sheet

Patterns don't work in a vacuum. Three habits separate traders who profit from patterns from those who just collect them.

Confirm the trend first. A continuation pattern only continues a trend that exists. Check direction before you trust the shape.
Wait for the breakout. A pattern is a possibility, not a position. Price has to actually break the level before it counts. Buying inside the pattern is guessing.
Demand volume. Almost every reliable breakout comes with a jump in volume. A breakout on quiet volume is the number one way these setups trap you.

And manage the trade like a pro regardless of the pattern: set your stop loss at the level that proves you wrong, and size the position so a loss is survivable. If you're new to the building blocks behind all of these shapes, start with our guide on candlestick patterns, since every pattern here is made of candles.

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