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Pay close attention and analyze carefully
1. Double Bottom (W Bottom)
Structure: Price declines twice to similar lows and then rebounds, forming a "W" shape. The second low does not break below the previous low and breaks through the middle high point (neckline).
Signal: Trend reversal from downtrend, subsequent bullish outlook.
Target: After breaking the neckline, the upward potential is approximately the vertical distance from the neckline to the low point.
2. Double Top (M Head)
Structure: Price rises twice to similar highs and then falls back, forming an "M" shape. The second high does not surpass the previous high and falls below the middle low point (neckline).
Signal: Trend reversal from uptrend, subsequent bearish outlook.
Target: After breaking the neckline downward, the downward potential is approximately the vertical distance from the neckline to the high point.
3. Head and Shoulders Bottom
Structure: Contains three lows—"Left Shoulder - Head - Right Shoulder." The head is the lowest point. The right shoulder does not fall below the head, and a breakout occurs above the neckline (connecting the highs of the left and right shoulders).
Signal: Strong reversal signal indicating bullish trend, more reliable than double bottom.
Target: After breaking the neckline, the upward potential is approximately the vertical distance from the neckline to the head's low point.
4. Head and Shoulders Top
Structure: Contains three highs—"Left Shoulder - Head - Right Shoulder." The head is the highest point. The right shoulder does not surpass the head, and a breakdown occurs below the neckline (connecting the lows of the left and right shoulders).
Signal: Strong reversal signal indicating bearish trend, more reliable than double top.
Target: After breaking the neckline downward, the downward potential is approximately the vertical distance from the neckline to the head's high point.
5. Ascending Triangle
Structure: The lows are progressively higher, but the highs remain at the same level, forming an upward-sloping triangle.
Signal: Likely to break upward after consolidation, a bullish continuation pattern.
Target: After breaking the resistance level, the upward potential is approximately the vertical height of the triangle.
6. Descending Triangle
Structure: The highs are progressively lower, but the lows remain at the same level (support level), forming a downward-sloping triangle.
Signal: Likely to break downward after consolidation, a bearish continuation pattern.
Target: After breaking the support level downward, the downward potential is approximately the vertical height of the triangle.