Chart Patterns ReferenceUS Tech 100 IndexPEPPERSTONE:NAS100sunyaA comprehensive guide to technical chart formations recognized by professional traders worldwide. Master the art of identifying, measuring, and trading these essential market patterns with precision. Reversal Patterns:- Head and Shoulders Bearish Reversal A baseline (neckline) with three peaks. The middle peak (head) is the highest, while the outside two (shoulders) are lower and roughly equal height. Interpretation & Guidance Signal: Sell when price breaks below the neckline. Target: Measure the distance from the Head to the Neckline, and project that distance downwards from the breakout point. Inv. Head and Shoulders Bullish Reversal The opposite of the standard version. It forms after a downtrend with a low trough (head) between two higher troughs (shoulders). Interpretation & Guidance Signal: Buy when price breaks above the neckline resistance. Target: Measure depth from Head to Neckline and project upwards from breakout. Double Top Bearish Reversal An "M" shaped pattern occurring at the top of an uptrend. Price hits a resistance level twice but fails to break higher. Interpretation & Guidance Signal: Sell when price breaks below the support valley between the two peaks. Psychology: Buyers attempted twice to push higher and failed; momentum is shifting to sellers. Double Bottom Bullish Reversal A "W" shaped pattern occurring after a downtrend. Price tests a support level twice and holds, indicating a floor. Interpretation & Guidance Signal: Buy when price breaks above the resistance peak between the two lows. Psychology: Sellers failed to push price to a new low; buyers are taking control. Triple Top Bearish Reversal Three distinct peaks at approximately the same price level. It signifies a very strong resistance that buyers cannot overcome. Interpretation & Guidance Signal: Strong sell signal on the breakdown of the support line. Note: Takes longer to form than a Double Top but is considered more reliable due to the third failure.