Chart patterns emerge through price development over time and signal either trend reversals or trend continuations.
Head & Shoulders
The most reliable reversal pattern after an uptrend: three highs, the middle one (head) higher than the two shoulders. The neckline connects the two lows between the highs.
| Variant | Signal | Price target after break |
|---|---|---|
| H&S (after uptrend) | 📉 Bearish | Neckline − head-neckline distance |
| Inverse H&S (after downtrend) | 📈 Bullish | Neckline + head-neckline distance |
| Double Top | 📉 Bearish | Low − (High − Low) |
| Double Bottom | 📈 Bullish | High + (High − Low) |