Taken from Discord post by JB
Candles
All inclusive Technical Analysis
Ascending triangle
A bullish ‘continuation’ pattern that signifies a breakout is likely where the triangle lines converge. To draw this pattern, you need to place a horizontal line (resistance line) on the resistance points and draw an ascending line (uptrend line) along the support points.
Descending triangle Represents a bearish market downtrend. The support line is horizontal, and the resistance line is descending, signifying the possibility of a downward breakout.
Symmetrical triangle Two trend lines start to meet which signifies a breakout in either direction. The support line is drawn with an upward trend, and the resistance line is drawn with a downward trend. Even though the breakout can happen in either direction, it often follows the general trend of the market.
Triangle Comparison
Pennant Two lines that meet at a set point. They are often formed after strong upward or downward moves where traders pause, and the price consolidates before the trend continues in the same direction. Flag Shaped as a sloping rectangle, where the support and resistance lines run parallel until there is a breakout. The breakout is usually the opposite direction of the trendlines, meaning this is a reversal pattern.
Wedge
A tightening price movement between the support and resistance lines, this can be either a rising wedge or a falling wedge. Unlike the triangle, the wedge doesn’t have a horizontal trend line and is characterized by either two upward trend lines or two downward trend lines. For a downward wedge it is thought that the price will break through the resistance and for an upward wedge, the price is hypothesized to break through the support. This means the wedge is a reversal pattern as the breakout is opposite to the general trend
Double bottom
Looks like the letter W and indicates when the price has made two unsuccessful attempts at breaking through the support level. It is a reversal pattern as it highlights a trend reversal. After unsuccessfully breaking through the support twice, the market price shifts towards an uptrend
Double top
Looks much like the letter M. The trend enters a reversal phase after failing to break through the resistance level twice. The trend then follows back to the support threshold and starts a downward trend breaking through the support line.
Head and shoulders
Tries to predict a bull to bear market reversal. Characterized by a large peak with two smaller peaks either side, all three levels fall back to the same support level. The trend is then likely to breakout in a downward motion.
Rounding bottom
Usually indicates a bullish upward trend. Traders can buy at the middle of the U shape, capitalizing on the bullish trend that follows as it breaks through the resistance levels.
Cup and handle
A continuation pattern that signals a bullish market trend. It is the same as the above rounding bottom but features a handle after the rounding bottom. The handle resembles a flag or pennant, and once completed can see the market breakout in a bullish upwards trend.
Additional Patterns
