10 Technical Patterns

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INDEX
Continuation pattern

- Bullish flag Pag. 5

- Bearish flag Pag. 6
- Flat flag Pag.7
-Symmetrical triangle Pag.8
- Expanding triangle Pag.9
- Falcon Flag Pag. 10

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Reversal pattern

- Descending channel Pag. 11

-Descending channel Pag. 12
-Rising wedge Pag. 13
- Falling Wedge Pag. 14
- Head and shoulders pattern Pag. 15
- Inverse Head and Shoulders Pag. 16
- Double top Pag. 17
- Double bottom Pag. 18
- The Arc Pag. 19

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01. Bullish flag
Continuation pattern.
A bullish flag (hence the name) resembles a flagpole, as it is found in
an impulsive upward movement of the price. The price will spike
upwards and form a sideways 'flag' continuation, which indicates to us
that the price is ready to continue its impulsive nature upon breaking
out of the flag.

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02. Bearish flag
Continuation pattern.
A bearish flag is the opposite of a bullish flag. It resembles an inverted
flag, as the price has just spiked downwards and forms a tight
continuation pattern resembling a flagpole. This allows us to predict the
next impulsive section that will move downwards.

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03. Flat flag
Continuation pattern.

A flat continuation pattern is essentially a very clear bullish or bearish flag.

They are not as common as typical bullish and bearish flags, but they offer
the same market opportunity to enter long or short positions.

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04. Symmetrical triangle
Continuation pattern.

A symmetrical triangle is another form of continuation pattern that

we can classify when analyzing price action. It resembles a flag that is
compressed or 'squeezed' in its structure.

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05. Expanding triangle
Continuation pattern.
The expanding triangle is another form of continuation pattern that differs
slightly from the other patterns we have covered. It is a rarer pattern, but
when it develops, it can offer an excellent risk-reward ratio. The triangle
"expands" outwards, but still remains a continuation pattern.

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06. Falcon flag
Continuation pattern
This pattern gathers a lot of neutrality in sideways movement and with
remarkable volume. It is worth mentioning that in the case of a
downtrend, it would be a good idea to wait for a breakdown that
would indicate the continuation of the trend after this brief sideways
pause. This pattern is recognized when there is a lot of downward
pressure and the price falls with engulfing candles. In this case, the
possible downward break is most clearly visible.

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07. Rising channel
Reversal pattern.
The typical characteristics of a rising channel include three touches at
both the lower and upper areas, along with a consistently corrective
nature, indicating that a possible price reversal is underway.

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08. Descending channel
Reversal pattern.
A descending channel is very similar and includes three touches at
both the lower and upper areas, along with a corrective nature,
indicating a potential price reversal. Buying opportunities are sought
when the price reaches a potential reversal area.

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09. Rising wedge
Reversal pattern.
A rising wedge pattern is a reversal pattern that resembles a 'squeeze'
of the price on its way up. Each touch of the pattern comes closer
together, and when the tip of the pattern is reached, a trend change is
more likely. The probability of a reversal is always increasing

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10. Falling Wedge
Reversal pattern.
The price action approaches a structured level, signaling a buying opportunity. It
is very similar to a rising channel, although you can visually see that the price is
'squeezed' within the wedge structure, pushing the price downwards upon
breakout and confirmation of the pattern.

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11. Head and shoulders pattern
Reversal pattern.
The head and shoulders pattern is a pattern used in many different
strategies and is a widespread pattern throughout the market. It
resembles a real head and shoulders shape, with the head
representing the second test of a structural level and the right
shoulder forming the third test of that zone to move downwards

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12. Inverse Head and Shoulders
Reversal pattern.
The inverse head and shoulders pattern is the same as a regular head
and shoulders pattern, only in the opposite direction. It signals a
rejection of a structural support level after the third right shoulder and
retests it, confirming an upward movement and trend change.

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13. Double top
Reversal pattern.
The double top is the second rejection of the upper area of a
significant structural zone, with a breakout confirming the structural
reversal. It is a widespread pattern traded throughout the market,
especially in the forex market. However, our approach to the double
top is very different, as we understand the price behavior at a much
deeper level.

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14. Double bottom
Reversal pattern.
It is a very common pattern that we look for when the price reaches
the beginning of a pattern after it has broken (90% rule). Rejection of a
structural support zone with two lows. Often, we use the double
bottom and double top pattern as a 'nullification.

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15. The Arc
Reversal pattern.

Following the double top and double bottom formations, we can now
move on to the 'arc'. The arc is a development of the double top and
double bottom formation and is discussed in detail in the sv3trading
content. It is a pattern that provides us with entry points that have a
high risk-reward ratio.

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