1. Head & Shoulders (Bearish Reversal)
Signal:Trend reversal from bullish to bearish.
- Left Shoulder → Head → Right Shoulder
- Breakdown below neckline confirms the pattern.
- Commonly seen near market tops.
2. Inverse Head & Shoulders (Bullish Reversal)
Signal:Trend reversal from bearish to bullish.
- Opposite of Head & Shoulders.
- Breakout above neckline indicates buying opportunity.
3. Double Top (Bearish)
Signal:Potential downtrend.
- Two peaks at nearly the same level.
- Breakdown below support confirms bearishness.
4. Double Bottom (Bullish)
Signal:Potential uptrend.
- Two lows at similar levels.
- Breakout above resistance confirms the move.
5. Ascending Triangle (Bullish)
Signal:Continuation of an uptrend.
- Flat resistance.
- Rising support line.
- Breakout usually occurs upward.
6. Descending Triangle (Bearish)
Signal:Continuation of a downtrend.
- Flat support.
- Falling resistance.
- Breakdown usually occurs downward.
7. Bull Flag
Signal:Strong bullish continuation.
- Sharp rise (flagpole).
- Small consolidation (flag).
- Breakout often resumes the trend.
8. Cup & Handle
Signal:Strong bullish continuation.
- Rounded cup formation.
- Small handle pullback.
- Breakout above handle often leads to large moves.
Best Patterns for Nifty & Stocks
- Cup & Handle
- Bull Flag
- Ascending Triangle
- Inverse Head & Shoulders
- Double Bottom
Tip:Never trade a pattern alone. Confirm with:
- Volume breakout 📊
- RSI (momentum)
- Support & resistance
- Overall market trend
These confirmations significantly improve the probability of successful trades.