The Double Bottom is a pattern that indicates a change in the direction of the overall trend- from bearish to bullish. Price Action must be trading with a bearish expansion towards the lows that reverses with an impulse. This impulse gets sold into and retests the original low, confirming a ‘W’ like structure prior to a strong bullish expansion.

Key Characteristics of the Double Bottom Price Action must be leading in with a bearish expansion The original low must be respected on the second attempt The Double Bottom pattern resembles a ‘W’ like formation

The Double Top is a pattern that indicates a change in the direction of the overall trend, in this case a bullish trend into bearish. Price Action must be trading with a bullish expansion towards the highs that reverses with an impulse sell. This impulse sell gets bought up into and retests the original high confirming a ‘M’ like structure prior to a strong bearish expansion. It is simply the opposite to a Double Bottom Pattern.

Key Characteristics of the Double Top Price Action must be leading in with a Bullish Expansion The original high must be respected on the second attempt The Double Bottom pattern resembles a ‘M’ like formation

The Descending Triangle is a bearish Price Action Pattern that consists of consecutive lower highs and a horizontal support. Price action trades towards an apex where a decision is made by market participants. The Dynamic Resistance and the Horizontal Support creates the apex, price literally has no room to move but break with an impulse. Confirmation of the Descending Triangle is a break of the horizontal support with a strong bearish expansion.

Key characteristics of the Descending Triangle The Descending Tringles is a strong bearish price action pattern The pattern consists of consecutive lower highs, bearish market structure The Dynamic Resistance and the Horizontal Support create an apex where a break will become imminent.

The Ascending Triangle is a bullish Price Action Pattern that consists of consecutive higher lows and a horizontal resistance. The Dynamic Support and the Horizontal Resistance creates an apex where a break becomes imminent. Confirmation of the Ascending Triangle is a break of the horizontal resistance with a strong bullish expansion. This price action pattern is the exact opposite to the descending triangle.

Key characteristics of the Ascending Triangle The Ascending Tringles is a strong bullish price action pattern The pattern consists of consecutive high lows forming a bullish market structure The Dynamic Support and the Horizontal Resistance create an apex where a break will become imminent.

The Descending Broadening Wedge is a bullish Price Action pattern that has a dynamic support and resistance. A break of the resistance activates the pattern and is more often followed with a strong bullish expansion. A partial decline at the dynamic resistance is suggestive of buy pressure coming into fruition before a strong break. These patterns are usually quite quick and explosive in nature.

Key characteristics of the Descending Broadening Wedge The Descending Broadening Wedge is a bullish price action pattern with a dynamic resistance and support. The pattern consists of a partial decline, evocating of buy pressure being present. The pattern is usually a reversal sign and or a continuation of the prevailing trend.

The Ascending Broadening Wedge is a Bearish Price Action pattern that has a dynamic support and resistance. This pattern is the opposite of the Descending Broadening Wedge discussed in the previous section. A break of the support activates the pattern and is more often followed with a strong bearish expansion. A partial incline from the dynamic support is suggestive of sell pressure coming into fruition before a strong break.

Key characteristics of the Ascending Broadening Wedge The Ascending Broadening Wedge is a bearish price action pattern with a dynamic resistance and support. The pattern consists of a partial incline, evocating of sell pressure being present. The pattern is usually a reversal sign and or a continuation of the prevailing trend, similar to the Descending Broadening Wedge.

The Falling Wedge is a bullish price action pattern that consists of a dynamic support and resistance creating an apex. The apex is a flex zone where a break comes to fruition that further leads into a bullish expansion. This price action pattern usually indicates the end of a bear trend and or a continuation of the bullish momentum.

Key characteristics of the Falling Wedge The Falling Wedge is a bullish pattern that has a dynamic support and resistance Price Action has an apex zone where a break comes to fruition, usually followed with an expansion. This pattern more often leads to a continuation and or represents an end to a bearish trend.

The Rising Wedge is a bearish price action pattern that consists of a dynamic support and resistance creating an apex. This pattern is the opposite of the falling wedge that was discussed in the previous section. The apex is a flex zone where a break comes to fruition that further leads into a bearish expansion. The Rising Wedge pattern is usually indicative of an end to a bull trend or a continuation of bearish momentum.

Key characteristics of the Rising Wedge ‘ The Rising Wedge is a bearish pattern that has a dynamic support and resistance Price Action has an apex zone where a break comes to fruition, usually followed with a bearish expansion (opposite to the falling wedge). This pattern more often leads to a continuation and or represents an end to a bullish trend.

The Head and Shoulders is a bearish Price Action pattern that has a left and right shoulder with a head. This represents the ‘three peaks’ the outer peaks are similar in length with the middle being the highest. Price action as such represents the collective psychology of the market, signalling a reversal of the trend. The Neckline S/R is a critical support in the pattern that needs to be broken for activation. Successful breaks are usually followed by an impulse and a bearish retest. This pattern is believed to be one of the more reliable trend reversal patterns, especially on higher timeframes.

Key characteristics of the Head and Shoulders. The pattern has two shoulders and a head, representing the ‘three peaks’ with the middle being the highest. The head and shoulders pattern represents the collective psychology of the market and acts as a reversal pattern The pattern is usually a reversal sign and is activated with a break of the Neckline S/R.

The Inverted Head and Shoulders is a bullish Price Action pattern that is literally the opposite of the regular head and shoulders. Price action here also represents the collective psychology of the market, signalling a reversal of the trend. The Neckline S/R is a critical resistance in the pattern that needs to be broken for activation. The breach of the Neckline S/R more often leads to a strong bullish expansion.

Key characteristics of the Inverted Head and Shoulders. The pattern has two shoulders and a head, representing the ‘three peaks’ and is the opposite of the regular head and shoulders. The inverted head and shoulders pattern also represents the collective psychology of the market and acts as a reversal pattern The break of the Neckline S/R activates the pattern and is followed by a bullish expansion.