FxLyTics
Forex Chart Patterns Guide
Study reversal, continuation and bilateral chart patterns used in price-action trading, with concise descriptions and bias notes.
Reversal, continuation and bilateral formations traders repeatedly see in live markets.
BearishReversal
Evening Star
Three candle pattern: large bullish, small body, large bearish. Top reversal signal near highs.
BullishReversal
Morning Star
Three candle pattern: large bearish, small body, large bullish. Bottom reversal near lows.
BullishReversal
Engulfing (Bullish)
Large bullish candle engulfs prior bearish candle. Buyers overpower sellers at support.
| Name | Bias | Type | Description |
|---|---|---|---|
| Head and Shoulders | Bearish | Reversal | Three peaks with middle peak highest. Signals trend reversal after neckline break. |
| Inverse Head and Shoulders | Bullish | Reversal | Three troughs with middle trough lowest. Stronger when volume confirms breakout. |
| Double Top | Bearish | Reversal | Two failed pushes into similar resistance. Confirms below neckline/support. |
| Double Bottom | Bullish | Reversal | Two defended lows around similar support. Confirms above neckline/resistance. |
| Triple Top | Bearish | Reversal | Three tests of resistance showing supply absorption failure. |
| Triple Bottom | Bullish | Reversal | Three defended lows showing demand absorption. |
| Rounding Bottom | Bullish | Reversal | Gradual U-shaped transition from distribution to accumulation. |
| Rounding Top | Bearish | Reversal | Slow transition from accumulation to distribution near highs. |
| Rising Wedge | Bearish | Reversal | Converging upward trendlines. Momentum weakens before downside break. |
| Falling Wedge | Bullish | Reversal | Converging downward trendlines. Selling pressure exhausts before upside break. |
| Ascending Triangle | Bullish | Continuation | Flat resistance with rising lows. Buyers compress into supply. |
| Descending Triangle | Bearish | Continuation | Flat support with falling highs. Sellers compress into demand. |
| Symmetrical Triangle | Neutral | Bilateral | Converging trendlines. Breakout direction requires confirmation. |
| Bull Flag | Bullish | Continuation | Sharp rally followed by tight downward channel. Continuation above flag. |
| Bear Flag | Bearish | Continuation | Sharp decline followed by tight upward channel. Continuation below flag. |
| Pennant | Neutral | Continuation | Small symmetrical triangle after impulse move. Direction follows pole break. |
| Rectangle | Neutral | Continuation | Horizontal range between support and resistance. Trade confirmed breakout. |
| Cup and Handle | Bullish | Continuation | Rounded base with shallow handle. Breakout above rim. |
| Inverted Cup and Handle | Bearish | Continuation | Rounded top with shallow corrective handle. Breakdown below rim. |
| Broadening Wedge | Neutral | Bilateral | Expanding volatility with higher highs and lower lows. Wait for break. |
| Diamond Top | Bearish | Reversal | Expansion then contraction at highs. Often distribution before breakdown. |
| Diamond Bottom | Bullish | Reversal | Expansion then contraction at lows. Often accumulation before breakout. |
| Channel Up | Bullish | Continuation | Parallel rising support/resistance. Trend continues until channel fails. |
| Channel Down | Bearish | Continuation | Parallel falling support/resistance. Trend continues until channel fails. |
| Island Reversal | Both | Reversal | Gap away and gap back leaves isolated price action. Powerful exhaustion signal. |
| Morning Star | Bullish | Reversal | Three-candle bottom reversal after selloff. Stronger at support. |
| Evening Star | Bearish | Reversal | Three-candle top reversal after rally. Stronger near resistance. |
| Bullish Engulfing | Bullish | Reversal | Large bullish candle engulfs prior bearish body. Demand shift. |
| Bearish Engulfing | Bearish | Reversal | Large bearish candle engulfs prior bullish body. Supply shift. |
| Three White Soldiers | Bullish | Reversal | Three strong bullish candles. Buyers control after base. |
| Three Black Crows | Bearish | Reversal | Three strong bearish candles. Sellers control after top. |
| Doji Cluster | Neutral | Bilateral | Repeated indecision candles. Breakout needs volume/context confirmation. |