1.
Chart pattern
(Technical Analysis)

2.
“History Repeats Itself”
• The statement entitled above is one of the most
basic yet important premise in the realm of
Technical Analysis.
• The recurrence of history can be observed by
identifying similar behavior of a price action in
the past and use it as an inferential tool to
predict the future. We call it a Chart Patterns

3.
The Misconceptions of Sideways Phase
• Many of us has regarded sideways or so called
consolidation phase of the price action as the
condemned period that will inevitably make us lose
money.
• In fact, each statistically profitable Chart Pattern
exhibit a sideways move or, at least, less trending
period.
• Therefore, a period of sideways move should be
celebrated since it will be our utmost opportunity to
trade with a good rate of profitability.

4.
Type of Chart Patterns
There are two types of Chart Patterns:
• Continuation
The occurrence of this type of Chart Pattern
indicates that the prior trend will be continued.
• Reveral
The occurrence of this type of Chart Pattern
indicates that the prior trend will be reversed.

5.
The Constraints
There are more than 100 type of Chart Patterns and
we are sure that you will not be obliged to learn all of
them. Instead, we require you to learn only a handful
amount of Chart Patterns with the highest likelihood
to be profitable. They are:
Double Top, Double Bottom, Flag, Pennant, Rising
Wedge, Falling Wedge, Head & Shoulder, Inverted
Head & Shoulder

6.
Regular and Inverted Head & Shoulder
• This is one of the most basic type of reversal chart
pattern that all of traders should understand.
• It consists of three tops for the Regular Type and
three bottoms for the Inverted Type.
• As we can tell from the name, it depicts the form of
upper side of human body:
“A Head & 2 Symmetrical Shoulders”

7.
Regular and Inverted Head & Shoulder - Illustration

8.
Regular and Inverted Head & Shoulder - Example
• Regular Head & Shoulder

9.
Regular and Inverted Head & Shoulder - Example
• Inverted Head & Shoulder

10.
Double Bottom & Double Top
• Both of them are Reversal Chart Patterns. Double
Bottom means that the bearish trend will likely be
reversed into bullish trend and Double Top means
that the bullish trend will likely be reversed into
bearish trend.
• There are two types of these patterns, which are
the one with the same peak/bottom level and the
other one that contain a false break price action
which have a significantly higher success rate.

11.
Double Bottom & Double Top - Illustration
• Regular Type

12.
Double Bottom & Double Top - Example
• Double Bottom

13.
Double Bottom & Double Top - Example
• Double Top

14.
Flag & Pennant
• Both of the pattern work as consolidation or
continuation pattern. It means that the price should
continue its trend to the direction where the ‘Flag-
Pole’ points at.
• If the ‘Flag-Pole’ points up, then the trend will
continue to go up. Conversely, if the ‘Flag-Pole’
points down, then the trend will continue to go
down. Therefore, this pattern should be comprised
of ‘Flag-Pole’ and its flag or pennant.

15.
Flag & Pennant - Illustration
• Flag

16.
Flag & Pennant
• Bullish Flag

17.
Flag & Pennant
• Pennant

18.
Flag & Pennant
• Bullish Pennant

19.
Flag & Pennant
• Bullish Pennant

20.
Rising Wedge & Falling Wedge
• The shape of this pattern is a diagonal triangle.
• This is a very special type of chart pattern since it
works as a ‘double agent’, both as continuation and
reversal pattern.
• Most of the pattern occurrences will conjunct with
either Momentum Divergence and/or False
Breakout, it means that the success odds of this
pattern is expected to be up to, at least, 70% of its
occurrence.

21.
Rising Wedge & Falling Wedge - Illustration
• Rising Wedge

22.
Rising Wedge & Falling Wedge - Example
• Rising Wedge

23.
Rising Wedge & Falling Wedge - Illustration
• Falling Wedge

24.
Rising Wedge & Falling Wedge - Example
• Falling Wedge

25.
Triangles - Illustration
• Symmetrical

26.
Triangles - Example
• Symmetrical

27.
Triangles - Example
• Symmetrical

28.
Triangles - Illustration
• Ascending

29.
Triangles - Illustration
• Descending

30.
Broadening Formations - Illustration
• Original Broadening

31.
Broadening Formations - Example
• Original Broadening

32.
Broadening Formations - Illustration

33.
Broadening Formations - Illustration

34.
Broadening Formations - Example
• Descending Broadening Wedge