11 · Foundations

Bullish Chart Patterns

Six repeatable shapes price leaves behind before it continues or reverses higher.

Patterns are simply visual shorthand for the supply-and-demand behavior we’ve already covered. Each one below comes with our entry, stop, and target rules — treat these as defaults to build discipline from, not rigid laws that never bend.

TSLA chart forming an ascending triangle beneath flat resistance — TSLA — ascending triangle. Higher lows pressing into a flat ceiling. Buyers paying up while sellers hold one price is a squeeze in the making.

ARM chart with a bull flag consolidating after a sharp advance — ARM — bull flag. A strong leg up, then a tight drift lower on lighter volume. Contraction after expansion is the constructive version.

AAPL chart forming an inverse head and shoulders bottom — AAPL — inverse head and shoulders. The top formation upside down: three troughs, the middle deepest, and a neckline overhead to reclaim.

RIVN chart forming a cup and handle base — RIVN — cup and handle. A rounded base, then a shallow drift near the highs. The handle is the last shakeout before the move.

AMD chart forming a double bottom at the same support level twice — AMD — double bottom. Twice to the same level, twice held. The second hold is the evidence, not the first.

BMNR chart forming a falling wedge that resolves higher — BMNR — falling wedge. Narrowing lower highs and lower lows, volume drying up as it tightens. The compression is what makes the resolution worth trading.

Ascending Triangle

Rising swing lows meet a flat horizontal resistance line, compressing price into a triangle.

Entry: Long on a support bounce, or on a confirmed break above resistance.
Invalidation: Below the most recent higher low.
Target: The height of the triangle, projected from the breakout point.

Bull Flag

A sharp vertical “pole” is followed by a tight, downward-sloping consolidation channel — the “flag.”

Entry: On a confirmed break of the flag’s upper trendline, ideally with a volume pickup.
Invalidation: Below the flag’s low.
Target: The length of the pole, projected from the breakout point.

Inverse Head & Shoulders

Three troughs — a shoulder, a deeper head, then a second shoulder roughly matching the first — with a neckline connecting the two peaks in between.

Entry: Long on a confirmed close above the neckline.
Invalidation: Below the right shoulder.
Target: The distance from the head to the neckline, projected from the breakout point.

Cup & Handle

A rounded, U-shaped base (“the cup”) is followed by a brief, shallow pullback (“the handle”) on lighter volume before the breakout.

Entry: Long on a break above the handle’s resistance.
Invalidation: Below the low of the handle.
Target: The depth of the cup, projected from the breakout point.

Double Bottom

Price makes a low, rallies, then returns to retest that same low a second time before reversing — forming a “W.”

Entry: Long on a bounce off the second low, or a confirmed break above the mid-pattern neckline.
Invalidation: Below the second low.
Target: The height of the W, projected from the breakout point.

Falling Wedge

Both swing highs and swing lows slope downward but converge, showing selling pressure losing steam.

Entry: Long on a confirmed break above the upper wedge line.
Invalidation: Below the most recent low inside the wedge.
Target: The width of the wedge at its widest point, projected from the breakout.