What is a Pattern?Common Pattern CharacteristicsEntry and ExitFractalPullbacks and ThrowbacksFailuresTrapsDo Patterns Exist?Behavioral Finance and Pattern RecognitionComputers and Pattern RecognitionMarket Structure and Pattern RecognitionBar Charts and PatternsHow Profitable Are Patterns?Classic Bar Chart PatternsDouble Top and Double BottomDescriptionPerformanceFailureRectangle (Also “Trading Range” or “Box”)DescriptionPerformanceFailuresTriple Top and Triple BottomDescriptionStandard Triangles—Descending, Ascending, and SymmetricalDescending TriangleDescriptionPerformanceFailureAscending TriangleDescriptionPerformanceFailureSymmetrical Triangle (Also “Coil” or “Isosceles Triangle”)PerformanceFailureBroadening PatternsDiamond TopDescriptionPerformanceFailureWedge and ClimaxDescriptionPerformanceFailurePatterns with Rounded Edges—Rounding and Head and ShouldersRounding Top, Rounding Bottom (Also “Saucer,” “Bowl,” or “Cup”)DescriptionPerformanceHead and ShouldersDescriptionPerformanceFailureShorter Continuation Trading Patterns—Flags and Pennants (Also “Half-Mast Formation”)DescriptionFailureLong-Term Bar Chart Patterns with the Best Performance and the Lowest Risk of FailureConclusionReview Questions