Understand Chart Patterns

In Charting, there are some pattern that we need to take note.
Some of the pattern formation are bullish, bearish

Bearish 

Double Top Formation Pattern (look like an M)- Expected outcome is bearish.
Triple Top Pattern - Expected outcome is bearish.(similar to double top but with one more peak)
Once it crosses the neckline move in when the next candlestick is forming.
 *Luck is when preparation meet opportunity.

Trade Setup

After Shorting, Set a 20pip stop loss above the neckline and Take Profit at 30 pips below the neckline.






Head and Shoulder Pattern - Expected outcome is bearish
Once it crosses the neckline move in when the next candlestick is forming.
Currently it have already cross the neckline in this daily chart and the second candlestick is forming.
Thus you saw the last 2nd candle is an bearish engulfing candlestick (More explanation under candlestick
chapter) I would say it is the right time to short it for position trader.

Bullish

Inverse head & shoulder formation -Expected outcome is Bullish
From the 15min EURUSD chart, which looks like a inverse head & shoulder formation.
It is still too early to decide unless it breaks the neckline.

Double Bottom formation (which look like a W, Reverse of Double Top)- Expect a bullish outcome.
Triple Bottom formation (Reverse of Triple Top) - Expect a bullish outcome