Term
Head and Shoulders
Indicates a reversal of the trend once completed.
The neckline is watched for potential breakout lower.
An Inverse Head and Shoulders is where the neckline is watched for potential breakout higher. |
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Term
Double Tops and Bottoms
Formed after a sustained trend and indicates a possible trend reversal.
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Triple Tops and Bottoms
Not as prevalent as Head and Shoulders or Double Tops and Bottoms, but are a similar indication of a trend reversal. |
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Term
Triangles
Shows a convergence of two trend lines and that a breakout is likely to occur. Direction is not indicated.
Occur frequently, and can form over weeks and months. |
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Term
Flags and Pennants
Short term indicator of consolidation following a sharp price movement.
Need more info about what happens next. |
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Term
Cup and Handle
Bullish pattern where an upward trend has paused, but may continue when the handle is formed. |
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