📊 Pattern Library

Chart patterns for systematic trading
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Bull Flag
LONG
Sharp rally (flagpole) → shallow, downward-sloping consolidation channel → breakout continuation.
📋 Rules
  • Flagpole up at least 3× average bar range.
  • Consolidation retrace ≤ 38.2–50% of flagpole.
  • Two parallel lines forming a modest downward channel.
  • Breakout above flag upper trendline on ↑ volume or momentum.
🎯 Trading Plan
Entry: Buy the breakout candle close above flag top or buy the retest of the broken line.
Stop: Place stop below flag low or below retest low.
Targets:
  • TP1 = 0.5 × flagpole added to breakout.
  • TP2 = 1.0 × flagpole added to breakout.
📚 Study Points
  • A — Flagpole impulse
  • B — Shallow pullback (flag)
  • C — Breakout & measured move
📊 View Diagram 🎓 Practice
Head & Shoulders (Top)
SHORT
Left shoulder → higher head → right shoulder ≈ left → neckline break = reversal.
📋 Rules
  • Head high > shoulders.
  • Neckline roughly horizontal/diagonal.
  • Breakdown through neckline on ↑ momentum.
🎯 Trading Plan
Entry: Sell the close below the neckline or on the throwback retest.
Stop: Stop above right shoulder high.
Targets:
  • TP1 = 0.5 × (head − neckline) below neckline.
  • TP2 = 1.0 × (head − neckline) below neckline.
📚 Study Points
  • L — Left shoulder
  • H — Head
  • R — Right shoulder
  • N — Neckline & measured move
📊 View Diagram 🎓 Practice
Ascending Triangle
LONG
Flat resistance on top; rising higher lows → pressure build → breakout.
📋 Rules
  • At least 2 touches on top line; 2+ rising lows.
  • Volume/momentum expansion on breakout.
🎯 Trading Plan
Entry: Buy the close above resistance or the first retest.
Stop: Below last higher low.
Targets:
  • TP = triangle height added above breakout.
📚 Study Points
  • 1 — Flat resistance
  • 2 — Rising lows
  • 3 — Breakout & measured move
📊 View Diagram 🎓 Practice
Falling Wedge
LONG
Two falling trendlines contracting; momentum loss → bullish break more likely.
📋 Rules
  • Converging lines; lower highs & lower lows losing momentum.
  • Break above upper line confirms.
🎯 Trading Plan
Entry: Buy the break/retest of upper wedge line.
Stop: Below recent swing low.
Targets:
  • TP1 = 0.5 × wedge height
  • TP2 = 1.0 × wedge height
📚 Study Points
  • 1 — Converging trendlines
  • 2 — Weakening momentum
  • 3 — Bullish breakout
📊 View Diagram 🎓 Practice