Hello everyone, if you are struggling to identify price zones, entry points, or simply want to predict the trend of any currency pair, then this article is for you.
I will divide it into several parts, and today we will cover some common patterns — so grab a pen and paper to take notes!
First pattern: ASCENDING TRIANGLE
The ascending triangle is considered a bullish continuation pattern. In order to locate it, we will observe more than one ascending peak. To draw this pattern, a horizontal line (the resistance line) must be placed above the resistance points, and an ascending line (the uptrend line) must be drawn along the support points.
Second pattern: FLAG
The flag pattern is used to identify the possible continuation of a previous trend from a point where the price has drifted against that same trend. If the trend resumes, the price rise could be rapid, making the timing of a trade advantageous when noting the flag pattern.
If you think you have seen a flag to trade, the most important thing is the fast and steep price trend. If the price slowly rises and falls below the flag, you'd better not trade at that time.
3. CUP AND HANDLE
The cup and handle pattern on the price chart resembles a cup with a handle, where the cup is u-shaped and the handle has a slight downward slope.
The cup forms after an upward move and looks like a bowl or rounded bottom. As the cup is completed, a narrow price range develops on the right side and the handle is formed. A subsequent breakout of the trading range that forms the handle indicates a continuation of the previous upward move.
4. DOUBLE BOTTOM
The trajectory of the asset price within the formation of the model resembles the letter "W". The last two price lows, located at approximately the same level, is an area of strong support, in which twice performs an upward price reversal.
When the market price breaks the resistance level of the pattern, the formation of the pattern is complete. The sell signal appears and a change in the trend direction is expected.
5. INVERSE HEAD AND SHOULDERS
This pattern is identified when the price action of a security meets the following characteristics: the price falls to a low and then rises; the price falls below the previous low and then rises again; finally, the price falls again, but not as much as the second low. Once the final low is reached, the price heads upward toward resistance near the top of the previous apexes.
6. ROUNDING BOTTOM
The rounding bottom pattern looks similar to the cup and handle pattern, but does not experience the temporary downward trend of the "handle" portion.
The initial downward slope of a rounding bottom indicates oversupply, which forces the stock price down.
The move to an uptrend occurs when buyers enter the market at a low price, which increases demand for the stock. Once the rounded bottom is completed, the stock breaks out and will continue in its new uptrend.
7. TRIPLE BOTTOM
The Triple Bottom pattern is similar in appearance to the Inverse Head and Shoulders pattern, in that it is represented by a series of three highs and lows.
The difference is that the three highs of the Triple Bottom will have approximately the same height, whereas in the Inverse Head and Shoulders pattern, the second low is lower than the first and third lows.
The appearance of the Triple Bottom indicates the existence of a downtrend, which is currently in the process of reversing into an uptrend.
And here are some classic bullish patterns. In the next parts, I will cover bearish patterns, how to read candlesticks, and technical indicators.
If you find this interesting and useful, please leave me a like and a comment to keep me motivated!
Now, are you ready to trade? Remember and practice these patterns — you’ll soon become a true professional.
Good luck!
Kevinn_Nguyen.
I will divide it into several parts, and today we will cover some common patterns — so grab a pen and paper to take notes!
First pattern: ASCENDING TRIANGLE
The ascending triangle is considered a bullish continuation pattern. In order to locate it, we will observe more than one ascending peak. To draw this pattern, a horizontal line (the resistance line) must be placed above the resistance points, and an ascending line (the uptrend line) must be drawn along the support points.
Second pattern: FLAG
The flag pattern is used to identify the possible continuation of a previous trend from a point where the price has drifted against that same trend. If the trend resumes, the price rise could be rapid, making the timing of a trade advantageous when noting the flag pattern.
If you think you have seen a flag to trade, the most important thing is the fast and steep price trend. If the price slowly rises and falls below the flag, you'd better not trade at that time.
3. CUP AND HANDLE
The cup and handle pattern on the price chart resembles a cup with a handle, where the cup is u-shaped and the handle has a slight downward slope.
The cup forms after an upward move and looks like a bowl or rounded bottom. As the cup is completed, a narrow price range develops on the right side and the handle is formed. A subsequent breakout of the trading range that forms the handle indicates a continuation of the previous upward move.
4. DOUBLE BOTTOM
The trajectory of the asset price within the formation of the model resembles the letter "W". The last two price lows, located at approximately the same level, is an area of strong support, in which twice performs an upward price reversal.
When the market price breaks the resistance level of the pattern, the formation of the pattern is complete. The sell signal appears and a change in the trend direction is expected.
5. INVERSE HEAD AND SHOULDERS
This pattern is identified when the price action of a security meets the following characteristics: the price falls to a low and then rises; the price falls below the previous low and then rises again; finally, the price falls again, but not as much as the second low. Once the final low is reached, the price heads upward toward resistance near the top of the previous apexes.
6. ROUNDING BOTTOM
The rounding bottom pattern looks similar to the cup and handle pattern, but does not experience the temporary downward trend of the "handle" portion.
The initial downward slope of a rounding bottom indicates oversupply, which forces the stock price down.
The move to an uptrend occurs when buyers enter the market at a low price, which increases demand for the stock. Once the rounded bottom is completed, the stock breaks out and will continue in its new uptrend.
7. TRIPLE BOTTOM
The Triple Bottom pattern is similar in appearance to the Inverse Head and Shoulders pattern, in that it is represented by a series of three highs and lows.
The difference is that the three highs of the Triple Bottom will have approximately the same height, whereas in the Inverse Head and Shoulders pattern, the second low is lower than the first and third lows.
The appearance of the Triple Bottom indicates the existence of a downtrend, which is currently in the process of reversing into an uptrend.
And here are some classic bullish patterns. In the next parts, I will cover bearish patterns, how to read candlesticks, and technical indicators.
If you find this interesting and useful, please leave me a like and a comment to keep me motivated!
Now, are you ready to trade? Remember and practice these patterns — you’ll soon become a true professional.
Good luck!
Kevinn_Nguyen.
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✅ Receive 7–10 high-quality signals daily for Forex, Gold, and Bitcoin
✅ Fast updates, accurate alerts
✅ Suitable for both beginners and experienced traders
👉 Join now by clicking this link:
t.me/+6v7LMJO7cI04Nzg1
✅ Fast updates, accurate alerts
✅ Suitable for both beginners and experienced traders
👉 Join now by clicking this link:
t.me/+6v7LMJO7cI04Nzg1
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.