Reversal Patterns signal the end of a trend. The four kinds of reversal patterns are:
Head and shoulders pattern:
Price target = neckline – (head – neckline)
Inverse head and shoulders pattern:
Price target = neckline + (head – neckline)
Double tops and bottoms:
Triple tops and bottoms:
Continuation patterns signal a temporary pause in the trend, and that the trend will continue in the same direction as before. The four kinds of continuation patterns are:
Triangles:
Rectangles:
Flags:
Pennants: