🧵Chart Patterns Cheat Sheet🧵

The 13 Most Important Ones to Watch For 👇

$SPY $QQQ

1️⃣ Ascending Triangle: This is a bullish pattern that hints a breakout is likely where the triangle lines converge. To draw this pattern, place a horizontal line (the resistance line) on the resistance points and draw an ascending line (the uptrend line) along the support points.

2️⃣ Descending Triangle: Unlike ascending triangles, the descending triangle represents a bearish market downtrend. The support line is horizontal, and the resistance line is descending, signifying the possibility of a downward breakout.

3️⃣ Symmetrical Triangle: Two trend lines start to meet which signifies a breakout in either direction. The support line is drawn with an upward trend, and the resistance line is drawn with a downward trend. Even though the breakout can go either way, it typically follows market.

4️⃣ Pennant: These are represented by two lines that meet at a set point. They are often formed after strong upward or downward moves where traders pause and the price consolidates, before the trend continues in the same direction.