The formations we teach in our workshops, collected here as a study reference. Each entry describes what the pattern looks like, what it often signals, and what confirmation to watch for.
Two peaks at roughly the same price level separated by a moderate trough. Suggests buying pressure is weakening after a second failed attempt to push higher. Watch for a break below the trough (neckline) on increased volume.
Three peaks: a central higher peak (head) flanked by two lower peaks (shoulders). The neckline connects the lows between peaks. A close below the neckline after the right shoulder forms is the classic confirmation point.
A single candle with a small body at the top and a long lower wick at least twice the body length. Appears after a decline and suggests sellers pushed price down but buyers recovered by the close. Stronger when it forms at known support.
Flat resistance along the highs with a rising support trendline beneath. Buyers gradually absorb supply at higher lows. A breakout above resistance with volume expansion often continues the prior uptrend.
A sharp price rise (the flagpole) followed by a brief downward-sloping or horizontal consolidation (the flag). Volume typically contracts during the flag. A breakout above the flag upper boundary resumes the upward move.
Converging trendlines with lower highs and higher lows. Neither buyers nor sellers dominate until a boundary breaks. Direction of the breakout often follows the trend that preceded the triangle, but false breaks are common — wait for a close beyond the line.