Gradual U-shaped cup after a prior uptrend, followed by a small handle pullback before breakout. The cup shows accumulation, the handle shakes out weak hands. RDW monthly chart shows a textbook version.

Three peaks: left shoulder, higher head, right shoulder (lower). Neckline connects the two lows. Breakdown below neckline on volume = major reversal. Right shoulder lower than left = buyers losing control.

Two lows at the same support — buyers defended that price twice. Breakout triggers above neckline (high between the two lows). Second bottom on lower volume signals exhaustion of sellers.

Flat top resistance with rising support (higher lows). Buyers getting more aggressive each time while hitting the same ceiling. Coiling pressure releases explosively on breakout.

Strong vertical move (flagpole) followed by tight sideways/slight downward consolidation. Shakes weak hands. Measured move target often equals flagpole height from breakout point.

Slow gradual U-shaped recovery over months or years. Institutions quietly accumulating. Unlike V-bottom, the saucer is smooth — seller exhaustion is gradual. RDW monthly showed textbook rounding bottom.

Two peaks at roughly the same resistance level — the M shape. Price tried to break resistance twice and failed both times. Sellers are firmly in control at that level. The breakdown comes when price breaks below the valley between the two peaks (the neckline). Second peak on lower volume confirms weakening momentum.

The bearish mirror of the bull flag. A sharp drop (the flagpole) followed by a slight upward consolidation (the flag). The slight recovery looks like a bounce — but it is just weak hands covering shorts and trapped longs hoping for a reversal. When the flag breaks down, the next leg down equals the flagpole height.

Counterintuitive pattern that trips up beginners. Price is making higher highs AND higher lows — looks bullish. But the range is narrowing and the upper and lower trendlines are converging toward a point. This is a sign of weakening buying pressure. Each push higher takes more effort for less reward. When support breaks, the drop is sharp and fast. Rising wedges in bear market rallies are especially powerful short setups.

The bullish mirror of the rising wedge. Price is making lower highs AND lower lows — looks bearish. But the trendlines are converging and selling pressure is weakening with each push lower. Sellers are losing control. When the upper trendline breaks, the reversal is sharp. Falling wedges in bull market corrections are excellent long setups — they shake out the most weak hands right before the real move.

Flat bottom support with falling resistance (lower highs). Sellers are making lower highs — getting more desperate to exit — while buyers keep defending the same support. Each failed rally shows sellers are more willing to sell lower. When support breaks the move is sharp as panicked buyers sell simultaneously. Opposite of the ascending triangle.

The bearish mirror of the cup and handle. Price forms an inverted U-shape (rounding top) after a prior uptrend, then a slight upward handle before breaking below support. The rounding top represents gradual distribution by institutions. The handle is a final trap for latecomers — price briefly recovers, attracting buyers, then collapses below support hard.