14 Most Popular Trading Chart Patterns

Chart patterns are repeated shapes that price draws on a chart, and traders use them to spot likely reversals and continuations of a trend. Reversal patterns such as Head and Shoulders, Double Top and Triple Bottom form at the end of a move. The Flag and the Pennant form inside a trend and point to its continuation. Most patterns give a signal only after the price breaks a key line, such as the neckline.