Chart Patterns: Triangles, Flags and Head & Shoulders

Chart patterns are recognisable shapes that hint at what price may do next. They aren't guarantees, but they organise your read of structure and offer defined entries and stops.

Continuation patterns

Flags and pennants are brief pauses inside a trend before it resumes. Triangles (ascending, descending, symmetrical) show coiling energy that tends to break in the prevailing direction.

Reversal patterns

Head and shoulders (and its inverse) signal a possible trend reversal: three peaks with the middle highest, breaking a 'neckline'. Double tops and bottoms are simpler two-touch reversals.

Trade the break, not the hope

Patterns only matter once price confirms by breaking the key level. Anticipating a pattern that never completes is a common trap. Wait for the break, define your stop, and size to your risk plan.

Key takeaways

• Flags, pennants and triangles usually continue the trend.
• Head & shoulders and double tops/bottoms signal reversals.
• Trade the confirmed break, not the anticipated pattern.