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CRYPTO-CHART PATTERNS
Presented by Mahmoud Sardauna
Chart Patterns
• Triangles (Ascending, Descending & Symmetrical)
• Double Top & Double Bottom
• Channels – Ascending & Descending
• Head and Shoulders & Reverse Head and Shoulders
• Wedges - Rising & Falling
• Rectangles - Bullish and bearish
• Pennants - Bullish & bearish
• Flags - Bullish & bearish
• Cup & Handle and Inverse Cup and handle
Triangles – Symmetrical triangle
The pattern is formed when two trendlines are drawn facing one another. The psychology of the
market is, both buyers and sellers are actively trying to push the market in their direction, which
leads the price forming a triangle. As the two trendline gets closer a breakout is about to happen.

Symmetrical triangle, theoretically has a 50% chance of going up and 50% chance of going down.
Always enter after a successful breakout. It is found mostly around consolidation areas.
Triangles – Symmetrical triangle
The pattern is formed when two trendlines are drawn facing one another. The psychology of the
market is, both buyers and sellers are actively trying to push the market in their direction, which
leads the price going into a tight range.

Take profit (TP)

Triangles – Ascending Triangle
The pattern is formed when a trendline meets a resistance level. The psychology of the market is, the
buyers are trying to push the market in their direction, but the sellers keep buying everything leaading
to a resistance.

Ascending triangle, theoretically has a 70% chance of going up and 30% chance of going down.
Always enter after a successful breakout.
Triangles – Ascending triangle

Take profit (TP)

Double Bottom
Double bottoms are trend reversal formations, they occur after extended downtrends when two
valleys or “bottoms” have been formed. Notice how the 2nd bottom wasn’t able to significantly
break the 1st bottom.

This is a sign that the selling pressure is about finished, and that a reversal is about to occur. In this
situation, we would place an entry order above the neckline. The Neckline is a straight line
connecting the two valleys.
Double Bottom.
Entry should be after the break of the neckline. The height from the neckline to the bottom of the
valley is the take profit.

Take profit (TP)

Channels
When you draw two trendlines at same angle/inclination or parallel to one another, they form a Channel.
Most a times, price bounces as it moves from lower trend line to upper trendline.

Centre Line: An imaginary centre line which is acting as support and resistance can be found in each
channel (represented with Blue-dotted line below)
Bullish and Bearish Rectangle
This is formed when price got trapped inbetween support and resistance region there by leading
to price moving in a confined box-like shape. This shows in-decision or consolidation.

The big question is, which direction will the price move to? THINK OUTSIDE THE BOX! ☺
Bullish Rectangle

Bullish Rectangle - Formation Bullish Rectangle – Take profit

Bearish Rectangle

Bearish Rectangle - Formation Bearish Rectangle – Take profit

Wedges
Wedges shows a pause in the current market direction. When you see this formation, it signals that traders
are still deciding which direction will they take the price to, up or down. Wedges could serve as either
continuation or reversal patterns. We have two types of wedges, Rising Wedges & falling Wedges.

Rising Wedges
A rising wedge is formed when price consolidates between two upward sloping trenlines. The slope of the
support line is steeper than that of the resistance. This leads to a wedge-like formation, which is exactly
where the chart pattern gets its name from. The break out can be in either direction so we always wait for
confirmation before entry.
Falling Wedge
A falling wedge is formed when price consolidates between two downward sloping trenlines. The slope of the
support line. The break out can be in either direction so we always wait for confirmation before entry.
Just like the rising wedge, the falling wedge can either be a reversal or continuation signal.

As a reversal signal, it is formed at a bottom of a downtrend, indicating that an uptrend would come next.
As a continuation signal, it is formed during an uptrend, implying that the upward price action would
resume. Unlike the rising wedge, the falling wedge is a bullish chart pattern.
Reverse Head & Shoulder
Pennant
Pennants are continuation chart patterns formed after strong moves. They are usually formed afetr a big upward
or downward move, buyers or sellers usually pause to catch their breath before taking the pair further in the
same direction.
Because of this, the price usually consolidates and forms a tiny symmetrical triangle, which is called a pennant.
We have two types of pennant:
A. Bullish pennant, when the pennant is formed during an uptrend.
B. Bearish pennant, when the pennant is formed during a downtrend.

The difference between Symmetrical triangle and pennants are two (2):
1. The formation of symmetrical triangle is slow more than 5 touched, but that of pennant is quick. It has only 3
touches.
2. When measuring your Take profit: In symmetrical triangle you measure the height of the symmetrical
triangle. In pennant, you measure the height of the earlier move (also known as the mast).
Bullish Pennant
Bullish pennants, just like its name suggests, signals that bulls are about to go hunting again.

This means that the quick drop in the price or brief period of consolidation will give the bulls enough
energy to take the price higher again.

Bullish Pennant - Formation Bullish Pennant – Take profit set-up

Bearish Pennant
Bearish pennants is a continuation pattern formed during downtrend. It shows that the bears have rested
and ready to push the price downward.

This means that the quick rise in the price or brief period of consolidation will give the bears (sellers)
enough energy to push the price lower again.

Bearish Pennant - Formation Bearish Pennant – Take profit set-up

Bullish and Bearish Flag
A bull flag is a bullish chart pattern formed by two rallies (upward movements) separated by a brief
consolidating retracement period. This lead to a pattern that resambles a flag.

The sharper the spike on the flagpole, the more powerful the bull flag can be. To measure your take profit,
measure the height of the pole and extend the price by the corresponding height.

Bullish Flag - Formation Bearish Flag - Formation

Cup & Handle
A bull flag is a bullish chart pattern formed by two rallies (upward movements) separated by a brief
consolidating retracement period. This lead to a pattern that resambles a flag.

The sharper the spike on the flagpole, the more powerful the bull flag can be. To measure your take
profit, measure the height of the pole and extend the price by the corresponding height.
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REFERENCE: babypips.com, Binance.academy,

Investopedia.com

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