ZAforexContinuation patterns
| Pattern | What it looks like | How traders use it |
|---|---|---|
| Bull flag | A sharp rise (the pole) followed by a small downward-sloping channel | Buy the break above the flag; target = pole length |
| Bear flag | A sharp fall followed by a small upward-sloping channel | Sell the break below the flag |
| Pennant | A pole followed by a small symmetrical triangle | Trade the breakout in the pole's direction |
| Ascending triangle | Flat resistance with rising lows | Usually breaks up; buy above resistance |
| Descending triangle | Flat support with falling highs | Usually breaks down; sell below support |
| Symmetrical triangle | Converging highs and lows | Wait for the breakout either way |
| Rectangle (range) | Horizontal support and resistance | Trade the range or the breakout |
Reversal patterns
| Pattern | Signal | Confirmation |
|---|---|---|
| Head and shoulders | Bearish reversal after an uptrend | Close below the neckline; target = head-to-neckline distance |
| Inverse head and shoulders | Bullish reversal after a downtrend | Close above the neckline |
| Double top | Bearish: two failed attempts at the same high | Break of the low between the peaks |
| Double bottom | Bullish: two tests of the same low | Break of the high between the lows |
| Rising wedge | Bearish: narrowing upward channel | Break below the lower line |
| Falling wedge | Bullish: narrowing downward channel | Break above the upper line |
How to trade chart patterns
- Context first: a bull flag in a strong uptrend on the daily chart is more reliable than one in a choppy market.
- Wait for confirmation: a candle close beyond the pattern line.
- Stop-loss: on the other side of the pattern (e.g. below the flag).
- Target: the "measured move" (pole height or pattern height), or the next support/resistance.
- Size the trade with the lot size calculator.
Practise spotting patterns on the live chart with TradingView's drawing tools, and combine them with candlestick signals.
Frequently asked questions
What is a flag pattern in forex?
A short consolidation after a sharp move, sloping against the trend. A breakout in the trend direction often continues the move.
What are bullish chart patterns?
Bull flags, ascending triangles, inverse head and shoulders, double bottoms and falling wedges.
Are chart patterns reliable?
They improve the odds when combined with trend and risk management, but many patterns fail. Always use a stop-loss.