18 chart patterns
The classical chart patterns: cups, flags, triangles, wedges, double bottoms and head and shoulders, with what has to be true on the chart for each to trigger.
What chart patterns have in common
Chart patterns are the oldest vocabulary in technical analysis: shapes traced by price over weeks or months that describe how supply and demand changed hands. A base is a period where sellers were absorbed; a triangle is a range compressing toward a decision; a flag is a pause inside an active move. What they share is that the shape itself is the evidence. No indicator, no derived series, just where price went and how much volume it took to get there.
- The pattern is defined by price and volume alone, with no indicator inputs
- They form over weeks to months, which makes them swing and position-trading structures
- Each has a defined invalidation level that comes out of its own geometry
- Volume behaviour through the pattern is usually as important as the shape
What these patterns are telling you
Chart patterns are the most over-identified objects in technical analysis. Almost any price series contains something that can be squinted into a triangle or a head and shoulders, and the looser the definition the more matches you find and the less each one means. That is the reason PatternGrade grades them mechanically rather than describing them: the same chart always produces the same grade, so the identification is not doing the work that judgment would otherwise smuggle in.
PatternGrade grades what it finds and publishes how each grade has performed. It is not a financial advisor and does not give buy or sell recommendations.
Every chart pattern PatternGrade scans
Rescanned across ~4,500 US stocks end-of-day, after every close.
Cup & HandleA rounded base followed by a shallow drift lower on drying volume. PatternGrade scans every liquid US stock for cup and handle setups after each close and grades them A+, A or B.
Bull FlagA sharp advance followed by an orderly, low-volume drift against the trend. PatternGrade scans every liquid US stock for bull flags after each close and grades each one.
VCP (Volatility Contraction)A base of successively tighter pullbacks on falling volume. PatternGrade detects VCP setups across every liquid US stock and grades the contraction sequence.
Flat BaseA tight, shallow sideways range after an advance. PatternGrade scans every liquid US stock for flat bases and grades them on tightness and depth.
Darvas BoxA defined range with a firm ceiling and floor, in the style of Nicolas Darvas. PatternGrade scans US stocks after every close for clean box formations.
Base on BaseA second base forming directly above a first without a full advance between them, a sign of relative strength in a weak market.
Double BottomTwo distinct lows at a similar level separated by a rally: the classic W reversal. Scanned after every close across every liquid US stock and graded.
Triple BottomThree tests of the same support level that all hold. PatternGrade scans every liquid US stock after every close for triple bottom reversals.
Rounded BottomA gradual, saucer-shaped transition from downtrend to uptrend. PatternGrade detects rounded bottoms across every liquid US stock after each close.
Inverse Head & ShouldersA low flanked by two higher lows, capped by a neckline: the classic bottoming reversal. Scanned and graded across every liquid US stock.
Ascending TriangleA flat ceiling with rising lows beneath it. PatternGrade scans every liquid US stock for ascending triangles after every close and grades the fit.
Symmetric TriangleConverging highs and lows compressing into a coil. PatternGrade detects symmetrical triangles across every liquid US stock after each close.
Falling WedgeA downward-sloping range that narrows as it falls, typically resolving upward. Scanned after every close across every liquid US stock.
Rising Wedge BreakdownAn upward-sloping wedge that narrows and then breaks down. PatternGrade scans every liquid US stock for rising wedge breakdowns after every close.
PennantA small converging triangle immediately after a sharp move. PatternGrade scans US stocks after every close for pennants and grades pole and pennant quality.
High Tight FlagA rare pattern: a very large advance in a few weeks, then a shallow, tight pause. PatternGrade scans every liquid US stock for high tight flags.
Descending Channel BreakA break above the ceiling of an established downward channel. PatternGrade scans every liquid US stock for channel breaks after each close.
Consolidation BreakoutA move out of a well-defined sideways range on expanding volume. Scanned after every close across every liquid US stock and graded.
Chart patterns FAQ
What are the most reliable chart patterns?
There is no honest short answer, and any list that ranks patterns by reliability without saying how it measured them is worth ignoring. Reliability depends on how strictly the pattern is defined, the market environment it forms in, and what you count as success — and published figures are usually gross of costs, drawn from one market era, and missing every company that delisted along the way. PatternGrade does not publish a reliability ranking or a hit rate. What it publishes is the structural rule set behind every pattern, so you can see exactly what was tested and judge the match yourself.
How many chart patterns are there?
It depends entirely on how finely you split them. Some references list a dozen, others over a hundred, and many are variants of the same idea under different names. PatternGrade runs 75 scanners in all, each defined by explicit structural rules rather than by a picture.
Do chart patterns still work?
The underlying observation is not controversial: consolidation precedes directional movement, and certain shapes reflect supply being absorbed. What has changed is that the textbook examples are widely known, so clean ones are less common and the obvious levels attract more orders. That argues for grading and measuring rather than for abandoning the vocabulary.
What timeframe is best for chart patterns?
These patterns were described on daily bars, and that is where they are least noisy. PatternGrade scans the daily timeframe. Shorter-horizon versions of the same shapes exist, but the shorter the horizon the more of what you are looking at is noise rather than structure.
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