In this section we will cover chart patterns, these are patterns that are comprised of many candles and take considerably more time to form. Once again, there are multitudes of chart patterns to draw upon your MT4/5 platform, so we will try to only cover the more common and reliable patterns.

1. Head and Shoulders – Bearish Reversal
Signal: Potential downward trend (reversal from an uptrend).
Neckline: Support line connecting the lows between the left shoulder, head, and right shoulder. Break below this line confirms the reversal.
Structure: Three peaks – left shoulder (moderate high), head (highest peak), right shoulder (moderate high, similar to left). Volume often decreases from left to right shoulder.

2. Inverse Head and Shoulders – Bullish Reversal
Signal: Potential upward trend (reversal from a downtrend).
Neckline: Resistance line connecting the highs between the left shoulder, head, and right shoulder. Break above this line confirms the reversal.
Structure: Three valleys – left shoulder (moderate low), head (lowest point), right shoulder (moderate low, similar to left). Often seen with increasing volume on breakout.

3. Double Top – Bearish Reversal
Signal: Downward trend likely after two failed attempts to break resistance.
Neckline: Support line at the low point between the two peaks. Break below this line confirms the bearish reversal.
Structure: Two peaks at roughly the same level, separated by a moderate trough. Often accompanied by declining volume on the second peak.

4. Double Bottom – Bullish Reversal
Signal: Upward trend likely after two failed attempts to break support.
Neckline: Resistance line at the high point between the two lows. Break above this line confirms the bullish reversal.
Structure: Two lows at roughly the same level, separated by a moderate peak. Usually shows increasing volume at the second bottom.

5. Bear Flag – Bearish Continuation
Signal: Downtrend continuation after a sharp drop.
Neckline: Lower boundary of the flag. Break below confirms continuation of the downtrend.
Structure: Small upward-sloping or horizontal channel after a strong decline, resembling a flag on a pole. Volume often decreases during the consolidation.

6. Bull Flag – Bullish Continuation
Signal: Uptrend continuation after a strong rally.
Neckline: Upper boundary of the flag. Break above confirms continuation of the uptrend.
Structure: Small downward-sloping or horizontal channel after a sharp rise, resembling a flag on a pole. Volume usually decreases during consolidation and spikes on breakout.

7. Descending Triangle – Bearish Continuation
Signal: Likely downward continuation in a downtrend.
Neckline: Horizontal support line at the bottom. Break below confirms the bearish move.
Structure: Lower highs forming a descending resistance line, with lows forming a flat support line. Volume often contracts toward the breakout.

8. Ascending Triangle – Bullish Continuation
Signal: Likely upward continuation in an uptrend.
Neckline: Horizontal resistance line at the top. Break above confirms the bullish move.
Structure: Higher lows forming an ascending support line, with highs forming a flat resistance line. Volume usually contracts during the pattern and increases on breakout.