PRATIK KULKARNI
Chart Patterns (Head & Shoulders, Double
Top/Bottom, etc.)
Reversal Pa erns
These indicate a poten al change in trend direc on.
1. Head and Shoulders
Structure : A peak (shoulder), followed by a higher peak (head), and then another
lower peak (shoulder).
Signal : Reversal from an uptrend to a downtrend.
Confirma on : Break below the neckline (support line connec ng the troughs).
2. Inverse Head and Shoulders
Structure : Mirror of the head and shoulders pa ern.
Signal : Reversal from a downtrend to an uptrend.
3. Double Top
Structure : Two consecu ve peaks at approximately the same price level.
Signal : Bearish reversal.
Confirma on : Break below the support level (between the tops).
PRATIK KULKARNI
4. Double Bo om
Structure : Two consecu ve troughs at roughly the same level.
Signal : Bullish reversal.
Con nua on Pa erns
These suggest that the current trend is likely to resume.
5. Triangles
Types : Ascending, Descending, Symmetrical.
Signal : Breakout in the direc on of the prior trend a er a period of consolida on.
6. Flags and Pennants
Structure : Short-term pa erns following a sharp price move.
Signal : Con nua on of the previous trend.
o Flags are rectangular; Pennants are small symmetrical triangles.
7. Wedges
Types : Rising (bearish), Falling (bullish).
Signal : Can act as reversal or con nua on, depending on context.
Bonus Pa ern
8. Cup and Handle
Structure : "U" shape (cup), followed by a small consolida on (handle).
Signal : Bullish con nua on pa ern.
