Lesson 6 of 10 · 8 min
Chart patterns
Six shapes that appear on every chart, what each one usually means, and the rule that stops you seeing patterns that are not there.
By the end you'll be able to
- Recognise double tops and bottoms, head and shoulders, triangles, flags and ranges
- State whether each pattern suggests reversal or continuation
- Explain why a pattern is only confirmed when its key level breaks
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- 10 short lessons with quizzes and interactive tools
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A handful of shapes show up again and again, and each is support, resistance and trend in a recognisable arrangement.
The six to know
Bearish reversal
Price fails at the same high twice, then breaks the low between the two peaks. Buyers tried twice and gave up.
Tap a pattern to see its shape, its bias and what it usually means.
A chart pattern is a shape made over many candles. They fall into two families:
- Reversal patterns suggest the trend is ending: double top, double bottom, head and shoulders.
- Continuation patterns suggest a pause before the trend resumes: flags, ascending (and descending) triangles.
A range is neutral: it tells you nobody is winning until one side breaks.
Wait for confirmation
Every pattern has a key level: the neckline of a head and shoulders, the dip between two tops, the flat edge of a triangle. The pattern is only confirmed when price closes through that level. Until then it is a possibility, not a signal, and many “patterns” fail.
Try it
Pattern 1 of 6
Name the pattern. There are six; your score appears at the end.
Notice how similar the double top and the head and shoulders look at a glance. The difference is the middle peak, and the implication is the same: buyers are failing at the highs.
Quick check
Question 1 of 3
Which pattern is a bullish continuation?
Question 2 of 3
When is a head-and-shoulders pattern confirmed?
Question 3 of 3
A pattern is 60 pips tall and breaks its key level. Where is a common target?
Go deeper: Chart Patterns Explained: Tops, Triangles and Flags · Range Trading in Forex: How to Trade Sideways Markets