37 Patterns You Need to Know | RANKED by WIN RATES

Chart Patterns (37 Types): Definitions, Win Rates, and How to Trade Them

Chart patterns are repeatable price shapes that help traders identify possible breakouts, continuation moves, and reversals. A basic trade plan waits for confirmation, places a stop beyond the invalidation level, and sets a target with a measured move or nearby market structure.

The source notes in this guide include research published in 2022, 2023, 2024, and 2025, and the guide covers 37 chart pattern types.

What Is a Double Top Pattern and How Do You Trade It?

A double top pattern is a bearish chart formation in which price reaches a similar high twice, pulls back between the highs, and confirms a possible reversal when it breaks below the intervening low.

The pattern resembles the letter "M" on a price-versus-time chart. The first peak is followed by a pullback that creates support, known as the neckline. Price then forms a second peak near the first before breaking below the neckline.

Key features:

• A preceding uptrend.
• Two highs near the same price level.
• A trough between the highs that defines the neckline or support level.
• Lower volume near the second peak and higher volume when price breaks the neckline.

Simple trade plan:

• Entry: Wait for a close below the neckline rather than entering at the second top.
• Stop loss: Place the stop above the second top. If entering on a neckline retest, the stop can sit above the retest area.
• Target: Measure the distance from the tops to the neckline and project that distance down from the breakdown.

Reported result: In a multi-decade study of US equities, Adam and Adam double tops produced post-breakout declines of about 16% in the 1990s, 13% in the 2000s, and 12% in the 2010s in bull markets. Thomas Bulkowski, ThePatternSite

Which Chart Patterns Have the Best Win Rates?

The table summarizes reported win rates and average moves for common chart patterns. Some rows show target-hit rates, while others show average gains, average declines, or expectancy. These figures are not directly comparable. Treat them as starting points, then test each pattern in your own market, timeframe, and execution system.

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What Is a Double Bottom Pattern and How Do You Trade It?

A double bottom pattern is a bullish chart formation in which price falls to a similar low twice, rebounds between the lows, and confirms a possible reversal when it breaks above the intervening high.

The pattern resembles the letter "W" on a price-versus-time chart. The first trough is followed by a rebound to the neckline, then a second trough near the first. A close above the neckline confirms the formation.

• A preceding downtrend before the pattern begins.
• Two distinct lows near the same price level. Exact equality is not required.
• A peak between the lows that defines the neckline or resistance level.
• A breakout above the neckline, preferably with higher volume.
• A target based on the distance between the bottoms and the neckline, projected upward from the breakout.

Reported result: Double bottoms produced an average rise of about 50%, with about 72% of trades reaching their target. Thomas Bulkowski, ThePatternSite

What Is a Bullish Flag Pattern and When Does It Break Out?

A bullish flag pattern is a continuation setup in which a sharp upward move forms the flagpole, followed by a sideways or mildly downward consolidation. The pattern breaks out when price closes above the flag's upper boundary.

The flagpole shows strong buying pressure. During the flag, price moves through a narrow channel or rectangle while volume often falls. Traders commonly project the flagpole's height from the breakout to estimate a target.

Reported result: Bullish flags succeeded roughly 67-70% of the time when breakouts occurred with rising volume. Quantified Strategies Backtest Team, 2023

What Is a Bearish Flag Pattern and How Do You Spot It?

A bearish flag pattern is a continuation setup in which a sharp decline forms the flagpole, followed by a narrow upward or sideways consolidation. A break below the flag's lower boundary confirms the possible continuation of the downtrend.

Look for a steep drop, a tight countertrend consolidation, and a breakdown below the flag. Rising volume on the breakdown adds confirmation.

Reported result: A rule-based bear flag strategy produced statistically significant short-side profits across multiple equity indices. Quantified Strategies Backtest Team, 2023

What Is a Symmetrical Triangle Pattern and What Signals a Breakout?

A symmetrical triangle pattern forms when lower highs and higher lows converge into a tightening range before price breaks out.

Volume often falls as the triangle develops. A breakout in either direction may bring a volume increase. Breakouts often occur between one-half and three-quarters of the way through the pattern's lifespan.

Reported result: AI-assisted testing found that triangle breakouts succeeded about 67-88% of the time, depending on symmetry and the volatility regime. Barchart Research Lab, 2024

What Is a Rectangle Pattern and How Do You Trade the Breakout?

A rectangle pattern forms when price moves between roughly horizontal support and resistance levels. The range shows consolidation before a breakout.

Volume often falls inside the range and expands when price breaks out. The direction of the breakout determines whether the prior trend continues or reverses.

Reported result: High-scoring rectangles produced average gains of about 55%, compared with about 10% for poorly formed rectangles. Thomas Bulkowski, ThePatternSite

What Is the Volatility Contraction Pattern (VCP) and How Do You Trade It?

The volatility contraction pattern, or VCP, forms when an uptrending security experiences successive pullbacks that become smaller over time. Price and trading activity tighten before an upside breakout.

The setup combines contracting price action with falling volume. Traders watch for a breakout above the pivot or resistance level from the tightest consolidation, preferably with higher demand.

Reported result: Empirical trader studies report 60-70% breakout success when the move is accompanied by higher volume. TraderLion Research and Mark Minervini, 2023

What Is a Bullish Pennant Pattern and How Do You Trade It?

A bullish pennant pattern is a short-term continuation setup in which a sharp upward move is followed by a small symmetrical triangle. The pattern resolves with an upside breakout.

Reported result: Upward pennant breakouts reached their measured-move targets about 60% of the time. Thomas Bulkowski, ThePatternSite

What Is a Bearish Pennant Pattern and When Does It Fail?

A bearish pennant pattern is a short-term continuation setup in which a sharp decline is followed by a brief symmetrical triangle. A breakdown below the triangle continues the prior decline.

Reported result: Downward pennant breakouts reached their targets about 51% of the time, making them less reliable than bullish pennant breakouts in the cited data. Thomas Bulkowski, ThePatternSite

What Is a Measured Move Up Pattern and How Do You Target It?

A measured move up pattern has three legs: an initial rise, a correction, and a second rise that roughly matches the first leg in size and duration.

Reported result: The average first leg rose 36%, the correction fell 48%, and the second leg rose 31%. About 60% of patterns reached the full measure-rule objective. Thomas Bulkowski, ThePatternSite

What Is a Rising Channel Pattern and How Do You Trade It?

A rising channel pattern forms when price moves between two parallel trendlines that slope upward. The pattern shows a generally bullish trend.

Traders watch for bounces from the lower trendline, rejections at the upper trendline, and breaks outside the channel. A break above can signal faster upside movement, while a break below can warn of a reversal.

Reported result: Systematic channel-breakout tests produced positive expectancy when paired with disciplined re-entry rules. Quantified Strategies Backtest Team, 2022

What Is a Falling Channel Pattern and When Does It Reverse?

A falling channel pattern forms when price moves between two parallel trendlines that slope downward. It can act as either a bearish continuation pattern or a reversal setup.

A break below the channel can signal continuation. A break above the upper trendline can signal a reversal.

Reported result: Price-channel systems won about 35% of trades but maintained a reward-to-risk ratio near 2.4:1, producing long-term profit in the cited test. Quantified Strategies Backtest Team, 2022

How Do You Identify an Ascending Triangle Pattern?

An ascending triangle has flat resistance and rising support formed by higher lows. The structure often precedes an upside breakout.

Reported result: Ascending triangles produced average rises of 17%, 11%, and 11% across the 1990s, 2000s, and 2010s in bull markets. Thomas Bulkowski, ThePatternSite

How Do You Identify a Descending Triangle Pattern?

A descending triangle has flat support and falling resistance formed by lower highs. A breakdown below support confirms the bearish setup.

Reported result: Descending triangles produced average declines of 16%, 14%, and 16% across the same periods. Thomas Bulkowski, ThePatternSite

What Is a Wedge Pattern, Rising or Falling?

A wedge pattern forms when price moves between two converging trendlines that slope in the same general direction.

• Rising wedge: Usually bearish and confirmed by a break below support.
• Falling wedge: Usually bullish and confirmed by a break above resistance.

Reported result: Taller wedges produced stronger moves in the cited data. Rising wedges declined about 18.7% of their height, while falling wedges rose about 15.9%. Thomas Bulkowski, ThePatternSite

What Is a Rising Wedge Pattern and Why Is It Bearish?

A rising wedge pattern forms when price moves higher between two upward-sloping trendlines that converge. The setup turns bearish when price breaks below the lower trendline.

Reported result: Rising wedges usually broke lower and produced declines in the mid-teens percentage range. Thomas Bulkowski, ThePatternSite

What Is a Falling Wedge Pattern and When Does It Break Up?

A falling wedge pattern forms when price moves lower between two downward-sloping trendlines that converge. The setup turns bullish when price breaks above the upper trendline.

Reported result: Falling wedges produced average rises of about 17-18% after confirmation. Thomas Bulkowski, ThePatternSite

What Is a Cup and Handle Pattern and How Do You Confirm It?

A cup and handle pattern is a bullish continuation pattern with a rounded decline and recovery, followed by a smaller pullback called the handle. A breakout above handle resistance confirms the setup.

Reported result: About 47% of cup-with-handle breakouts retraced significantly, while about 23% gained 15% or less before reversing. Thomas Bulkowski, ThePatternSite

What Is a High-Tight Flag Pattern and Why Does It Work?

A high-tight flag pattern forms when a stock rises rapidly, consolidates near its highs, and then breaks out again.

Reported result: The median flagpole rose about 53% over roughly 63 days, showing the strong momentum associated with this pattern. Thomas Bulkowski, ThePatternSite

What Is a Flagpole Pattern and How Does It Set Up Breakouts?

A flagpole pattern is the sharp initial price move that precedes a short consolidation and a possible continuation breakout.

Reported result: Flagpoles typically rose about 53% over roughly two months in the cited data. Thomas Bulkowski, ThePatternSite

What Is the Bump and Run Reversal (BARR) Pattern?

The bump and run reversal, or BARR, is a three-phase reversal pattern. It starts with a lead-in trend, moves into a sharp bump, and then breaks the lead-in trendline before running in the opposite direction.

Reported result: BARR bottoms ranked first among 39 patterns in the cited study, with an average rise of about 55%, a 9% failure rate, and a 76% target-achievement rate. Thomas Bulkowski, ThePatternSite

What Is the Head and Shoulders Pattern, a Bearish Reversal?

A head and shoulders pattern is a bearish reversal with a central peak, called the head, between two lower peaks called the shoulders. A break below the neckline confirms the reversal.

Reported result: Head and shoulders tops produced average post-neckline declines of about 13% and ranked in the middle range among bearish setups. Thomas Bulkowski, ThePatternSite

What Is an Inverse Head and Shoulders Pattern, a Bullish Reversal?

An inverse head and shoulders pattern is a bullish reversal with three troughs, with the middle trough forming the lowest point. A break above the neckline confirms the reversal.

Reported result: Head and shoulders bottoms produced average rises of about 13% after upside breakouts. Wider patterns performed best in the cited data. Thomas Bulkowski, ThePatternSite

What Is a Triple Top Pattern and How Do You Confirm It?

A triple top is a bearish reversal pattern with three similar highs near resistance. A breakdown below the neckline confirms the pattern.

Reported result: High-scoring triple tops declined about 27%, while low-scoring examples declined about 15%. The difference supports a selective approach to pattern quality. Thomas Bulkowski, ThePatternSite

What Is a Triple Bottom Pattern and How Do You Trade It?

A triple bottom is a bullish reversal pattern with three similar lows near support. The setup confirms when price breaks above the resistance level between the lows.

Reported result: Failed triple bottoms still fell about 14% after invalidation, showing the risk of treating a pattern as bullish before confirmation. Thomas Bulkowski, ThePatternSite

What Is a Rounding Bottom Pattern and Why Is It Bullish?

A rounding bottom is a bullish reversal in which price gradually shifts from a downtrend to an uptrend and forms a broad U-shape. A break above the neckline confirms the pattern.

• The formation can last for weeks, months, or longer.
• Volume often falls during the bottoming phase and increases near the breakout.

Reported result: Rounding bottoms produced an average rise of about 48%, a failure rate near 4%, and a 65% target-achievement rate across nearly 1,000 examples. Thomas Bulkowski, ThePatternSite

What Is a Rounding Top Pattern and When Does It Break Down?

A rounding top is a bearish reversal in which an uptrend flattens into a dome shape before price breaks below the base support.

Reported result: Rounding tops ranked among the stronger bearish reversals in the cited data and produced sizable multimonth declines. Thomas Bulkowski, ThePatternSite

What Is a Diamond Top Pattern and How Do You Spot It?

A diamond top is a bearish reversal pattern in which volatility expands and then contracts into a diamond shape before a breakdown.

Reported result: Diamond tops produced average declines of about 10%. Taller and wider structures performed better in the cited data. Thomas Bulkowski, ThePatternSite

What Is a Diamond Bottom Pattern and How Do You Trade It?

A diamond bottom is a bullish reversal pattern in which volatility expands and then contracts into a diamond shape before an upside breakout.

Reported result: Diamond bottoms produced average rises in the low teens percentage range. Wider structures had better follow-through in the cited results. Thomas Bulkowski, ThePatternSite

What Is a Dead Cat Bounce Pattern and How Do You Trade It?

A dead cat bounce is a temporary rebound in a falling asset that fails and gives way to another decline.

Reported result: Shorting after the initial rebound succeeded in about 77% of 43 tested trades. Thomas Bulkowski, ThePatternSite

What Is a Parabolic Curve Pattern and When Does It Crash?

A parabolic curve pattern is a steeply accelerating uptrend that can end in a sharp reversal after price breaks its curved support line.

Reported result: Parabolic rallies commonly retraced 62-79% back toward the 50-61.8% Fibonacci zone within days. Topstep Research Desk, 2024

What Is an Inverted Cup and Handle Pattern, Bearish?

An inverted cup and handle pattern is a bearish setup with a rounded top followed by a smaller handle. A break below handle support confirms the possible continuation lower.

Reported result: Inverted cups produced average declines of about 17-19%, depending on the decade and market phase. Thomas Bulkowski, ThePatternSite

What Is a Megaphone Pattern and What Does It Signal?

A megaphone pattern, also called a broadening formation, has expanding swings with higher highs and lower lows between diverging trendlines. It signals rising volatility until price confirms a break.

Reported result: Broadening tops underperformed on average but still produced declines of about 20% after confirmed breaks. Thomas Bulkowski, ThePatternSite

What Is an Island Reversal Pattern and How Reliable Is It?

An island reversal pattern isolates a group of bars between two gaps. The second gap moves in the opposite direction and can signal a reversal.

Reported result: The typical move measured about 5-6%, which helps explain the pattern's limited predictive value in the cited data. Thomas Bulkowski, ThePatternSite

What Is a Descending Scallop Pattern and How Do You Spot It?

A descending scallop is a rounded, backward-J-shaped structure that often appears during an uptrend and can signal a bearish reversal when price breaks below the valley or stem.

Reported result: High-scoring descending scallops gained about 34% in upward moves or lost about 21% in downward moves, compared with about 10% for weak setups. Thomas Bulkowski, ThePatternSite

What Is an Ascending Scallop Pattern and How Do You Trade It?

An ascending scallop is a gently curved, J-shaped continuation pattern that forms during an uptrend. The pattern confirms when price closes above the scallop's high, also called the lip.

Reported result: Ascending scallops produced average rises of about 38-54% across several decades of data. Thomas Bulkowski, ThePatternSite

What Is a Butterfly Harmonic Pattern and How Does It Work?

A butterfly chart pattern is a harmonic reversal setup with four legs, X to A, A to B, B to C, and C to D. The reversal is expected near point D and depends on Fibonacci retracement and extension levels.

• A to B: Usually about a 78.6% retracement of XA.
• B to C: Usually a 38.2%-88.6% retracement of AB.
• C to D: Extends beyond X, often 127%-161.8% of XA or 161.8%-261.8% of BC.

Reported result: Harmonic butterfly tests on foreign exchange pairs produced a win rate near 45% and a mean trade return near 0.29%, depending on the precision of the rules. Quantified Strategies Backtest Team, 2025

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How Do You Turn Chart-Pattern Knowledge Into Measurable Trading Improvement?

Chart patterns become useful only when you apply the same confirmation, risk, and review rules from trade to trade. Record the pattern, setup quality, entry trigger, stop placement, target method, and outcome so you can compare your results with the reported win rates and average moves above.

Also record the market regime, pattern quality, position size, entry trigger, and post-trade notes. That record can show where the setup works, where it fails, and which mistakes recur. For more on trading order execution and best execution, see FINRA's investor guidance. For a primer on technical analysis, see Investopedia's technical analysis overview.