Need a quick reference for classic chart patterns and what they mean? This handy cheat sheet breaks down the most common forex chart patterns, when they form, what type of signal they give, and the expected price direction that usually follows.
Perfect for traders who want to recognize high-probability setups at a glance!
| Chart Pattern | Forms During | Signal Type | Expected Move |
|---|---|---|---|
| Double Top | Uptrend | Reversal | 🔻 Down |
| Double Bottom | Downtrend | Reversal | 🔺 Up |
| Head and Shoulders | Uptrend | Reversal | 🔻 Down |
| Inverse Head and Shoulders | Downtrend | Reversal | 🔺 Up |
| Rising Wedge | Downtrend | Continuation | 🔻 Down |
| Rising Wedge | Uptrend | Reversal | 🔻 Down |
| Falling Wedge | Uptrend | Continuation | 🔺 Up |
| Falling Wedge | Downtrend | Reversal | 🔺 Up |
| Bearish Rectangle | Downtrend | Continuation | 🔻 Down |
| Bullish Rectangle | Uptrend | Continuation | 🔺 Up |
| Bearish Pennant | Downtrend | Continuation | 🔻 Down |
| Bullish Pennant | Uptrend | Continuation | 🔺 Up |
🧠 Pro Tip:
Bookmark this page for easy access. It’s a valuable reference before opening or closing any trade—especially if you’re unsure about the pattern forming on your chart.
🤔 What About Triangle Patterns?
You may notice we haven’t included symmetrical, ascending, or descending triangles in this list. That’s because triangle patterns are versatile—they can appear in both uptrends and downtrends and may signal either a reversal or continuation, depending on the breakout direction.
That’s why practice and confirmation are key. Be prepared with your stop loss and entry orders no matter which way the market breaks.
🔍 Want to learn more? Explore detailed guides and chart examples for every pattern in our Daily Forex Pakistan.