12.3
🔲 12 · Point & Figure

🗂️ Pattern Catalog

15 P&F patterns in 4 categories: buy signals, sell signals, warning signals and advanced breakout patterns with CSS grid visualizations

In this Chapter

1 Buy Signals (5 Patterns) 2 Sell Signals (5 Patterns) 3 Warning Signals (3 Patterns) 4 Advanced Breakout Patterns (2 Patterns)

1. Buy Signals (5 Patterns)

1 — Double Top Breakout

Recognition rule: An X column rises above the high of the preceding X column.

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Golden X = buy signal. The second X column breaks above the first high.

2 — Triple Top Breakout

Recognition rule: An X column rises above the high of two preceding X columns — a stronger signal than Double Top.

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3 — Bullish Catapult

Recognition rule: Triple Top Breakout + subsequent pullback + renewed breakout above the triple-top level. This is the strongest buy signal.

4 — Bullish Triangle

Recognition rule: Successive highs become lower, lows become higher (converging movement). Breakout upward = buy signal.

5 — Spread Triple Top Breakout

Recognition rule: Breakout above three or more highs spread across multiple columns. A wider base = a stronger signal.

2. Sell Signals (5 Patterns)

6 — Double Bottom Breakdown

Recognition rule: An O column falls below the low of the preceding O column. Mirror image of the Double Top Breakout.

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Golden O = sell signal / short signal. The second O column falls below the low of the first.

7 — Triple Bottom Breakdown

Recognition rule: Falls below the low of two preceding O columns.

8 — Bearish Catapult

Recognition rule: Triple Bottom Breakdown + recovery + renewed break below the triple-bottom level. The strongest short signal structure.

9 — Bearish Triangle

Recognition rule: Lows become higher, highs become lower (converging), breakout downward.

10 — Spread Triple Bottom Breakdown

Recognition rule: Falls below three or more lows across multiple columns. Wide base = strong signal.

3. Warning Signals (3 Patterns)

11 — High Pole (Top Warning)

Definition: An X column at least 3 boxes taller than the preceding X column, followed by an O column giving back at least 50% of the X column. Not a sell signal — but a serious warning: the buyers are losing strength.

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Orange X = warning zone (upper half of the long X column). The O column to the right gives back ≥ 50% of the X length.

Consequence: Protect existing long positions, no aggressive adding as long as the High Pole is not resolved by a new high.

12 — Low Pole (Bottom Warning)

Definition: Mirror image of the High Pole: an O column at least 3 boxes longer than the preceding O column, followed by an X reversal ≥ 50%. Signal: the sellers are losing strength — possible base formation.

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Orange O = warning zone (lower end of the long O column). The X to the right recovers ≥ 50% of the O length.

Consequence: Do not aggressively short, loosen short hedges. Low Pole + subsequent Triple Bottom Breakdown is a powerful combined buy signal.

13 — Signal Reversed (Fakeout Warning)

Definition: A valid buy or sell signal is generated (e.g. Double Top Breakout), but the price immediately falls back below the signal level. The signal is deemed invalid — the market has lured traders in the wrong direction.

Bullish Signal Reversed (buy fakeout):

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Orange X = buy signal (Double Top Breakout) immediately reversed by the fourth O column. The O column falls back below the signal level.

Bearish Signal Reversed works as a mirror image: a Double Bottom Breakdown briefly falls below the signal level, but immediately turns back upward.

Consequence: Close Signal Reversed situations immediately or do not enter. A Signal Reversed is often the prelude to a strong counter-move.

4. Advanced Breakout Patterns (2 Patterns)

14 — Ascending Triple Top Breakout

Definition: Like the Triple Top Breakout, but each X column reaches a higher high than the previous one. The market shows higher highs and higher lows — an uptrend with continuation bias. The buy signal fires when the third X column exceeds the next higher high.

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Golden X = buy signal. The three X columns have ascending highs (row 4 → row 3 → row 1). Difference from the regular Triple Top: in that pattern all three highs are at the same level.

Assessment: Stronger than the regular Triple Top Breakout because it confirms an existing uptrend rather than merely breaking a resistance level.

15 — Descending Triple Bottom Breakdown

Definition: Mirror image of the Ascending Triple Top: each O column reaches a lower low than the previous one. Strong sell signal in an established downtrend.

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Golden O = sell signal. The three O columns have descending lows (row 3 → row 4 → row 6).

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