UNDERSTANDING

CHART PATTERNS
A comprehensive guide to understanding chart
patterns and how to apply them for effective results

BRAVE FX ACADEMY
 CHART PATTERNS
INTRODUCTION

Chart patterns are one of the basics of technical analysis as far as

trading is concerned. They're simply special shapes formed by
price movement over time.

These chart patterns can give insights on what to expect from the
market depending on how and where they are formed.

They basically act as signals signifying when to go long (Buy) or

short (Sell)

There are two types of chart patterns:

Bullish Chart Patterns

Bearish Chart Patterns

 BULLISH
CHART PATTERNS
These are the chart patterns that tells us price could be getting
ready to go up. With this information, you can prepare for an
opportunity to open a buy trade.

There’s a lot of bullish chart patterns, but we would mention just a

few important ones.

Inverse Head & Shoulder

Bullish Flag

Double Bottom

Ascending Triangle

Falling Wedge

Bullish Pennant
 BULLISH CHART PATTERNS
Bullish
Continuation
Bullish Flag
Bearish Trend Buy Area

Neckline Buy Area

1 2
Left Shoulder Right Shoulder
Head Upward trend

Buy Area
Resistance Level
Buy Area
neckline

3 s 4
Low
her
support Hig
Bottom 1 Bottom 2

Declining Resistance
Buy Area

Buy Area
Bullish Trend
Pennant
Bullish Move
(Flag Pole)
5
Falling Wedge
6
Rising Support
 BEARISH CHART
PATTERNS

These are the chart patterns that send signals indicating that price
could be getting ready to go down. With this information, you can
prepare for an opportunity to open a sell trade.

There are so many bearish chart patterns, but we would highlight

just a few important ones.

Head & Shoulder

Bearish Flag

Double Top

Descending Triangle

Rising Wedge

Bearish Pennant
 BEARISH CHART PATTERNS
Bearish flag
Downward Trend
Head

Left Shoulder Right Shoulder

Neckline Sell Area

1
Bullish Trend
Sell Area 2

Bearish Continuation
Top 1 Top 2

Resistance
Low
er H
3 igh
s

neckline 4
Potential Sell Area Support Level
Sell Area

Bearish Trend Resistance

5 Bearish Trend
(Flag Pole)
Pennant

Rising Wedges Sell Area 6

Sell Area

Support
 CONTINUATION & REVERSAL
CHART PATTERNS

Bullish & bearish chart patterns are classified into two basic concepts,
these are the continuation & the reversal chart patterns.

CONTINUATION CHART PATTERN

As the name implies, If price is in a bullish trend, a bullish continuation

pattern indicates that price will likely continue to rise & as for a bearish
trend, bearish continuation patterns indicates that price will likely
continue to drop

REVERSAL CHART PATTERN

A reversal pattern shows that price is about to start moving in the

opposite direction. So a bullish reversal pattern indicates that price is
likely going to stop dropping & start rising. While a bearish reversal
pattern indicates that price is likely going to stop rising and start falling
 BULLISH CONTINUATION

Buy Area
Buy Area
Buy Area

FALLING WEDGE ASCENDING TRIANGLE BULLISH PENNANT

BEARISH CONTINUATION

Sell Area
Sell Area Sell Area

RISING WEDGE BEARISH PENNANT DESCENDING TRIANGLE

 BULLISH REVERSAL

Buy Area
Buy Area
Buy Area

INVERSE HEAD & SHOULDER DOUBLE BOTTOM FALLING WEDGE

BEARISH REVERSAL

Sell Area

Sell Area Sell Area

HEAD & SHOULDER DOUBLE TOP RISING WEDGE