20 essential chart patterns every trader should know — explained in plain English with real crypto examples.
Three peaks — the middle one tallest. A small peak (left shoulder), a taller peak (the head), then another small peak (right shoulder). When price drops below the neckline, it often signals a move downward.
Three valleys — the middle one deepest. The upside-down version signals the downtrend may be ending. A break above the neckline is the buy signal.
Looks like the letter "M." Price hits a ceiling twice and gets rejected both times. When it breaks below the valley between the tops, expect a decline.
Looks like the letter "W." Price bounces off the same floor twice. When it breaks above the peak between the bottoms, expect a rally.
Flat resistance on top, rising support on the bottom. The highs stay level while the lows keep getting higher — like a spring being compressed. Usually breaks upward.
Flat support on the bottom, falling resistance on top. The lows stay level while the highs keep getting lower. Usually breaks downward.
A sharp rally (the pole), then a slight downward drift (the flag). Like a runner catching their breath before sprinting again. The uptrend usually continues.
A sharp drop (the pole), then a slight upward drift (the flag). The small bounce isn't a real recovery — the downtrend usually continues.
Lower highs meet higher lows — the price gets squeezed into a tighter range. Can break in either direction, so wait for confirmation.
Price climbs in a narrowing channel. Despite going up, it's bearish — buyers are losing steam. Expect a sharp drop when support breaks.
Price falls in a narrowing channel. Despite going down, it's bullish — sellers are losing steam. Expect a rally when resistance breaks.
Price hits the same ceiling three times and fails. Three rejections is a very strong bearish signal — more reliable than a Double Top.
Price bounces off the same floor three times. Three successful tests of support creates strong conviction for an upward reversal.
A rounded U-shape recovery (the cup) followed by a small dip (the handle). One of the most famous bullish patterns in trading.
A slow, bowl-shaped curve from downtrend to uptrend. Like a ship turning around — gradual but powerful once complete.
Sharp rally (pole) then a tiny symmetrical triangle (pennant). Like a sprinter coiling up before the next burst upward.
Sharp drop (pole) then a tiny symmetrical triangle (pennant). A brief pause before selling continues downward.
Price bounces between two parallel upward lines — an orderly, healthy uptrend. Buy near support, sell near resistance.
Price bounces between two parallel downward lines — a controlled, steady downtrend. A break above signals reversal.
The range expands like a megaphone — increasing volatility and chaos. Often appears at the end of strong trends before a reversal.
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