Chart Patterns We Detect

A bull flag forms after a strong upward move (flagpole) followed by a slight downward or sideways consolidation (flag). The pattern signals continuation of the prior uptrend.

• Sharp upward move creating the flagpole
• Consolidation drifts down/sideways with decreasing volume
• Breakout above flag on increased volume

The cup and handle resembles a tea cup with a rounded U-shape (cup) followed by a smaller consolidation (handle). It typically forms over 7-65 weeks with cup depth of 12-33%.

• Rounded U-shaped cup formation
• Handle forms as slight pullback near highs
• Breakout above resistance confirms pattern

A symmetrical triangle forms when price makes lower highs and higher lows, creating converging trendlines. In an uptrend context, it typically breaks upward.

• Lower highs form descending resistance
• Higher lows form ascending support
• Breakout near apex with volume surge

An ascending triangle has flat horizontal resistance and rising support (higher lows). Buyers are increasingly aggressive, compressing price toward resistance.

• Flat resistance line at consistent level
• Rising support line (higher lows)
• Breakout above resistance on volume

A bullish pennant forms after a strong upward move (pole) followed by a small symmetrical triangle (pennant). It's a short-term continuation pattern lasting 1-3 weeks.

• Sharp move up creates the pole
• Small converging triangle forms pennant
• Quick breakout continues the trend

This pattern combines a base of progressively higher lows (showing accumulation) with a volume spike at breakout, indicating institutional buying.

• Base with 60%+ of lows making higher lows
• Volume contracts during base building
• Breakout accompanied by volume surge

A flat base is a tight horizontal consolidation (8-15% range) that forms after an uptrend, typically near 52-week highs. It shows strong holder conviction.

• Tight 8-15% price range
• Forms after prior advance near highs
• Low volatility shows strong hands holding

A deep pullback (30-50% retracement) within an uptrend that finds support and resumes higher. Often bounces from Fibonacci retracement levels.

• 30-50% pullback in established uptrend
• Finds support at key level (Fibonacci, MA)
• Recovery resumes prior uptrend

A double bottom is a W-shaped reversal pattern with two roughly equal lows separated by a peak. It signals a potential trend reversal from bearish to bullish.

• Two bottoms at approximately the same level (within 3%)
• Peak between bottoms forms resistance (neckline)
• Breakout above neckline confirms reversal

A falling wedge has two downward-sloping converging trendlines. Despite the downward drift, it's a bullish pattern that typically breaks out upward.

• Both trendlines slope downward
• Lines converge as pattern progresses
• Bullish breakout above upper trendline

Also called a saucer pattern, the rounding bottom shows gradual transition from selling to buying pressure through a smooth U-shaped curve.

• Gradual curved shape over extended period
• Volume often mirrors the price pattern
• Breakout above resistance confirms reversal

The inverse head and shoulders is a bullish reversal with three troughs: two shoulders at similar levels flanking a deeper head. Breaking the neckline confirms the reversal.

• Three troughs: left shoulder, head, right shoulder
• Head is lowest, shoulders roughly equal
• Neckline breakout confirms pattern

This pattern identifies stocks recovering after a major collapse (>50%). After the crash, price builds a base before starting a new uptrend.

• Prior decline of 50% or more
• Base-building consolidation period
• Recovery breakout with improving fundamentals

Three white soldiers consist of three consecutive bullish candles, each opening within the prior candle's body and closing progressively higher. It signals strong bullish momentum.

• Three consecutive green/white candles
• Each candle closes higher than previous
• Appears after downtrend as reversal signal

A bullish engulfing pattern occurs when a large green candle completely engulfs the prior red candle's body. It signals potential reversal from bearish to bullish momentum.

• Green candle body engulfs prior red body
• Appears after downtrend or pullback
• Larger engulfing candle = stronger signal

Volatility compression (Bollinger Band squeeze) occurs when price range narrows significantly, indicating building pressure that often leads to a strong breakout.

• Decreasing price range over time
• Bollinger Bands converge (squeeze)
• Explosive breakout when bands expand