Chart patterns: the formations price keeps repeating

Three peaks. The middle one (the head) is higher than the two side ones (the shoulders), which sit at similar heights. The lows between the peaks connect through an almost horizontal line — the neckline.

After a trend, the last peak fails to be topped on the next attempt. Momentum in the current direction weakens, and the opposing side takes control.

A reversal of the trend. Target = the distance from the top of the head to the neckline, projected from the break point.

Confirmation is the break of the neckline. The standard version tops off an uptrend; the inverse version appears at the end of a downtrend and signals a rise. Stop beyond the nearby shoulder.

Two peaks at nearly the same level, separated by a dip (double top); or, mirrored, two equal lows (double bottom).

Price tests the same level twice and can't break through it. The second rejection shows the current direction has run out of fuel.

A reversal once the level between the two peaks (or lows) breaks. Target = the height of the pattern.

Confirmation is the break of the intermediate line. Stop beyond the second peak or low.

Three peaks (or three lows) at the same level, separated by dips. The extended variant of the double top/bottom.

The level is tested three times and holds each time. The third rejection confirms a strong barrier.

A more reliable reversal than the double, since the level has been validated more times. It shows up more rarely, though.

Confirmation is the break of the line connecting the dips. Stop beyond the last peak or low.

Price first widens out (higher highs, lower lows), then narrows — the outline resembles a diamond. It's a megaphone followed by a triangle.

High, chaotic volatility at the top, then a squeeze that precedes the change of direction.

A diamond at the top — reversal down; a diamond at the base — reversal up. Technically it can break either way, so it needs confirmation.

You wait for the lower side to break (at the top) with volume. A rare, hard-to-draw formation — use with caution.

Two lines sloping in the same direction that converge — unlike a triangle, where one side is flat or the two slope opposite ways. It appears after an impulse.

The move narrows and loses strength. A rising wedge tends to break down, a falling one to break up — often opposite to its slope.

Most often a reversal of the move. It can also be a continuation, depending on the trend it appears in, so it needs a clear confirmation.

You wait for one of the lines to break, with volume. Stop on the opposite side of the break.

After a sharp, broad move (the impulse), a small consolidation follows. On a flag it's a small channel sloping against the move; on a pennant, a small triangle.

A breather after a strong impulse, while the market digests the move before resuming it.

A continuation of the initial move. The target is approximated by the length of the impulse, measured from the break point.

Entry on the break of the consolidation in the direction of the impulse, stop on the other side of the flag.

They have exactly one horizontal side — that's what sets them apart from the symmetrical one. Ascending: flat resistance up top, rising support. Descending: flat support at the bottom, falling resistance.

One side keeps pressing on a level (up or down), while the other steadily gives up ground — pressure builds toward the flat side.

A clear lean: the ascending one tends to break up, the descending one down, usually in the direction of the prior trend.

Entry on the break of the flat side, with volume. Target ≈ the height of the triangle's base.

Two converging lines — one falling, one rising — with no flat side. The range narrows toward the apex.

A balance between the two sides: highs drop, lows rise. The market is "loading up" and hasn't chosen a direction yet.

Unlike the ascending/descending triangle, it has no direction of its own. The break can go up or down; statistically, it more often follows the prior trend.

You don't anticipate the direction — you wait for the break and follow it, with volume. Target ≈ the height of the base.

Price oscillates between a horizontal support and resistance — a corridor. In Russian-speaking markets the formation is called "flat" (флэт).

A balance in which neither side dominates, until one of the boundaries gives way.

A move in the direction of the break. Most often it continues the prior trend, but it can break either way.

Entry on the break of one boundary, stop on the opposite side. False breaks are common here — confirmation matters.

The inverse of the usual triangle: the lines diverge. Higher highs and lower lows, like a megaphone. It has no clear breakout — which is why the figure above doesn't show one.

A nervous market with no clear control. It shows up often near market tops, driven by emotion and elevated volatility.

A weak signal that's hard to trade — it has no reliable direction. More a warning of instability than a setup.

Generally to be avoided by beginners. If you do use it, only with strong confirmation and small risk.