Let's dive into 50 detailed chart patterns, their formation, how they are traded, and apply the XAU/USD (Gold vs. US Dollar) pair as an example for each pattern. I'll group these patterns into categories based on their role in reversing or continuing the trend.

Each explanation will involve:
1. How the pattern is formed
2. Trading the pattern
3. Detailed XAU/USD example
Reversal Patterns
Reversal patterns signal that the ongoing trend is likely to change direction.
These patterns indicate that the ongoing trend is likely to reverse direction.
1. Head and Shoulders:
- Formation: Three peaks, with the middle one being the highest (the head) and the two outside peaks being smaller (the shoulders). The neckline connects the troughs between the peaks.
- Trading: Enter short when the price breaks the neckline.
- Stop Loss: Place it above the right shoulder.

Example 1 (XAU/USD):
- Peaks: $1,950 (left shoulder), $1,970 (head), and $1,940 (right shoulder), with a neckline at $1,930.
- Enter a short position when price breaks below $1,930. Set a stop loss at $1,950 and aim for $1,890.
Example 2:
- Peaks: $2,010 (left shoulder), $2,030 (head), $2,000 (right shoulder), neckline at $1,990.
- Enter below $1,990, with a stop loss at $2,010, target at $1,950.
2. Inverse Head and Shoulders
- Formation: The opposite of the head and shoulders pattern, with three troughs.
- Trading: Enter long when the price breaks above the neckline.
- Stop Loss: Below the right shoulder.

Example 1 (XAU/USD):
- Troughs at $1,860, $1,840 (head), and $1,870, neckline at $1,880.
- Buy above $1,880, stop loss at $1,860, target $1,920.
Example 2:
- Troughs at $1,900, $1,880, and $1,910, neckline at $1,920.
- Buy at $1,920, stop at $1,900, target at $1,960.
3. Double Top
- Formation: Two peaks at a similar price level, showing resistance.
- Trading: Enter short after the price breaks below the neckline.
- Stop Loss: Above the second peak.

Example 1 (XAU/USD):
- Peaks at $2,000, neckline at $1,980.
- Sell below $1,980, stop at $2,000, target $1,960.
Example 2:
- Peaks at $1,970 and $1,960, neckline at $1,950.
- Sell below $1,950, stop loss at $1,970, target $1,930.
4. Double Bottom
- Formation: Two troughs at a similar price level, signaling support.
- Trading: Enter long when the price breaks above the neckline.
- Stop Loss: Below the second trough.

Example 1 (XAU/USD):
- Troughs at $1,850, neckline at $1,870.
- Buy above $1,870, stop at $1,850, target $1,890.
Example 2:
- Troughs at $1,860, neckline at $1,880.
- Buy at $1,880, stop loss at $1,860, target at $1,900.
5. Triple Top
- Formation: Three peaks at a similar price level, showing strong resistance.
- Trading: Enter short when the price breaks below the neckline.
- Stop Loss: Above the third peak.

Example 1 (XAU/USD):
- Peaks at $1,990, neckline at $1,970.
- Sell below $1,970, stop at $1,990, target at $1,950.
Example 2:
- Peaks at $2,010, neckline at $1,990.
- Sell below $1,990, stop at $2,010, target at $1,970.
6. Triple Bottom
- Formation: Three troughs at the same price level, indicating strong support.
- Trading: Enter long when the price breaks above the neckline.
- Stop Loss: Below the third trough.

Example 1 (XAU/USD):
- Troughs at $1,860, neckline at $1,880.
- Buy above $1,880, stop at $1,860, target at $1,900.
Example 2:
- Troughs at $1,840, neckline at $1,860.
- Buy above $1,860, stop at $1,840, target at $1,880.
7. Rising Wedge
- Formation: A rising wedge is formed by converging upward-sloping trendlines, signaling a bearish reversal.
- Trading: Enter short when the price breaks below the lower trendline.
- Stop Loss : Above the last swing high.
Example 1 (XAU/USD):
- The wedge forms between $1,900 and $1,940. Sell below $1,900, stop at $1,940, target at $1,860.
Example 2:
- Wedge between $1,920 and $1,960. Sell below $1,920, stop at $1,960, target at $1,880.
8. Falling Wedge
- Formation: A falling wedge is formed by converging downward-sloping trendlines, signaling a bullish reversal.
- Trading: Enter long when the price breaks above the upper trendline.
- Stop Loss: Below the last swing low.

Example 1 (XAU/USD):
- The wedge forms between $1,880 and $1,840. Buy above $1,880, stop at $1,840, target at $1,920.
Example 2:
- Wedge forms between $1,900 and $1,860. Buy above $1,900, stop at $1,860, target at $1,940.
9. Rounding Top
- Formation: A slow, gradual reversal from bullish to bearish, forming a rounded top.
- Trading: Enter short when the price breaks below support.
- Stop Loss: Above the highest point of the rounding top.
Example 1 (XAU/USD):
- Rounding top forms around $2,000 with support at $1,980. Sell below $1,980, stop at $2,000, target at $1,960.
Example 2:
- Rounding top at $1,980 with support at $1,950. Sell below $1,950, stop at $1,980, target at $1,920.
10. Rounding Bottom
- Formation: A slow, gradual reversal from bearish to bullish, forming a rounded bottom.
- Trading: Enter long when the price breaks above resistance.
- Stop Loss: Below the lowest point of the rounding bottom.
Example 1 (XAU/USD):
- Rounding bottom forms around $1,850 with resistance at $1,870. Buy above $1,870, stop at $1,850, target at $1,890.
Example 2:
- Rounding bottom at $1,860 with resistance at $1,880. Buy above $1,880, stop at $1,860, target at $1,900.
Continuation Chart Patterns
These patterns suggest that the current trend will likely continue after a brief consolidation.
11. Bullish Flag
- Formation: A sharp upward movement followed by a rectangular consolidation pattern.
- Trading: Enter long when the price breaks above the flag’s upper boundary.
- Stop Loss: Below the flag’s lower boundary.
Example 1 (XAU/USD):
- Flagpole from $1,850 to $1,900, flag consolidates between $1,900 and $1,880. Buy above $1,900, stop at $1,880, target $1,950.
Example 2:
- Flagpole from $1,870 to $1,920, flag consolidates between $1,920 and $1,900. Buy above $1,920, stop at $1,900, target $1,970.
12. Bearish Flag
- Formation: A sharp downward movement followed by consolidation in a rectangular pattern.
- Trading: Enter short when the price breaks below the flag’s lower boundary.
- Stop Loss: Above the flag’s upper boundary.
Example 1 (XAU/USD):
- Flagpole from $1,950 to $1,900, flag consolidates between $1,900 and $1,920. Sell below $1,900, stop at $1,920, target $1,850.
Example 2:
- Flagpole from $1,980 to $1,940, flag consolidates between $1,940 and $1,960. Sell below $1,940, stop at $1,960, target $1,900.
13. Bullish Pennant
- Formation: A sharp upward movement followed by a small symmetrical triangle.
- Trading: Enter long when the price breaks above the pennant’s upper boundary.
- Stop Loss: Below the pennant’s lower boundary.
Example 1 (XAU/USD):
- Pennant forms after a flagpole from $1,850 to $1,900, consolidation between $1,900 and $1,880. Buy above $1,900, stop at $1,880, target $1,950.
Example 2:
- Pennant forms after a flagpole from $1,900 to $1,950, consolidation between $1,950 and $1,930. Buy above $1,950, stop at $1,930, target $2,000.
14. Bearish Pennant
- Formation: A sharp downward movement followed by a small symmetrical triangle.
- Trading: Enter short when the price breaks below the pennant’s lower boundary.
- Stop Loss: Above the pennant’s upper boundary.
Example 1 (XAU/USD):
- Pennant forms after a flagpole from $1,950 to $1,900, consolidation between $1,900 and $1,920. Sell below $1,900, stop at $1,920, target $1,850.
Example 2:
- Pennant forms after a flagpole from $1,980 to $1,940, consolidation between $1,940 and $1,960. Sell below $1,940, stop at $1,960, target $1,900.
15. Ascending Triangle
- Formation: Flat resistance with higher lows, indicating upward pressure.
- Trading: Enter long when the price breaks above resistance.
Example 1 (XAU/USD):
- Triangle with resistance at $1,880 and higher lows at $1,850 and $1,860. Buy above $1,880, stop at $1,860, target $1,900.
Example 2:
- Resistance at $1,920, higher lows at $1,890 and $1,900. Buy above $1,920, stop at $1,900, target $1,940.
16. Descending Triangle
- Formation: Flat support with lower highs, indicating downward pressure.
- Trading: Enter short when the price breaks below support.
- Stop Loss: Above the last lower high.
Example 1 (XAU/USD):
- Triangle with support at $1,880 and lower highs at $1,920 and $1,910. Sell below $1,880, stop at $1,910, target $1,860.
Example 2:
- Support at $1,920, lower highs at $1,960 and $1,950. Sell below $1,920, stop at $1,950, target $1,900.
17. Symmetrical Triangle
- Formation: Converging trendlines with no clear direction, showing price consolidation.
- Trading: Enter long or short depending on the breakout direction.
- Stop Loss: Below the last swing low or above the last swing high.
Example 1 (XAU/USD):
- Symmetrical triangle forms between $1,920 and $1,940. Buy above $1,940, stop at $1,920, target at $1,980.
Example 2:
- Symmetrical triangle forms between $1,900 and $1,880. Sell below $1,880, stop at $1,900, target at $1,850.
18. Rectangle Pattern (Bullish)
- Formation: A period of consolidation where price moves horizontally between a support and resistance level.
- Trading: Enter long when the price breaks above the resistance line.
- Stop Loss: Below the support level.
Example 1 (XAU/USD):
- Price oscillates between $1,900 (support) and $1,920 (resistance).
- Buy above $1,920, stop at $1,900, target $1,940.
Example 2:
- Price oscillates between $1,880 and $1,900.
- Buy above $1,900, stop at $1,880, target $1,920.
19. Rectangle Pattern (Bearish)
- Formation: A horizontal price movement where the price oscillates between a support and resistance level during a downtrend.
- Trading: Enter short when the price breaks below the support level.
- Stop Loss: Above the resistance level.
Example 1 (XAU/USD):
- Price oscillates between $1,940 (resistance) and $1,920 (support).
- Sell below $1,920, stop at $1,940, target $1,900.
Example 2:
- Price moves between $1,960 and $1,940.
- Sell below $1,940, stop at $1,960, target $1,920.
20. Bullish Continuation Wedge
- Formation: A downward-sloping wedge during an uptrend, indicating consolidation before continuing the uptrend.
- Trading: Enter long when the price breaks above the wedge’s upper boundary.
- Stop Loss: Below the wedge’s lower boundary.
Example 1 (XAU/USD):
- Wedge forms between $1,900 and $1,880. Buy above $1,900, stop at $1,880, target $1,940.
Example 2:
- Wedge forms between $1,920 and $1,900. Buy above $1,920, stop at $1,900, target $1,960.
21. Bearish Continuation Wedge
- Formation: An upward-sloping wedge during a downtrend, signaling a continuation of the downtrend.
- Trading: Enter short when the price breaks below the wedge’s lower boundary.
- Stop Loss: Above the wedge’s upper boundary.
Example 1 (XAU/USD):
- Wedge forms between $1,950 and $1,930. Sell below $1,930, stop at $1,950, target $1,900.
Example 2:
- Wedge forms between $1,980 and $1,960. Sell below $1,960, stop at $1,980, target $1,920.
22. Cup and Handle
- Formation: A rounded bottom followed by a small downward consolidation (handle), signaling a bullish continuation.
- Trading: Enter long when the price breaks above the handle’s resistance.
- Stop Loss: Below the handle's low point.
Example 1 (XAU/USD):
- Cup forms from $1,900 to $1,920, handle forms between $1,910 and $1,920.
- Buy above $1,920, stop at $1,910, target $1,950.
Example 2:
- Cup forms from $1,880 to $1,900, handle forms between $1,890 and $1,900.
- Buy above $1,900, stop at $1,890, target $1,930.
23. Bearish Cup and Handle
- Formation: An inverted cup followed by a small upward consolidation, signaling a bearish continuation.
-Trading: Enter short when the price breaks below the handle’s support.
- Stop Loss: Above the handle’s high point.
Example 1 (XAU/USD):
- Inverted cup forms from $1,940 to $1,920, handle forms between $1,930 and $1,920.
- Sell below $1,920, stop at $1,930, target $1,890.
Example 2:
- Inverted cup forms from $1,960 to $1,940, handle forms between $1,950 and $1,940.
- Sell below $1,940, stop at $1,950, target $1,910.
24. Measured Move Up
- Formation: Three parts – an initial upward movement, consolidation or pullback, and then another upward movement of equal length.
- Trading: Enter long after the pullback ends.
- Stop Loss: Below the lowest point of the pullback.
Example 1 (XAU/USD):
- First leg: $1,900 to $1,950, pullback to $1,920.
- Buy above $1,950, stop at $1,920, target $2,000.
Example 2:
- First leg: $1,920 to $1,960, pullback to $1,940.
- Buy above $1,960, stop at $1,940, target $2,000.
25. Measured Move Down
- Formation: An initial downward move, consolidation or bounce, followed by another downward move of similar length.
- Trading: Enter short after the bounce ends.
- Stop Loss: Above the highest point of the bounce.
Example 1 (XAU/USD):
- First leg: $1,960 to $1,920, bounce to $1,940.
- Sell below $1,920, stop at $1,940, target $1,880.
Example 2:
- First leg: $1,980 to $1,940, bounce to $1,960.
- Sell below $1,940, stop at $1,960, target $1,900.
26. Price Channel (Bullish)
- Formation: Parallel upward-sloping lines that contain price movement.
- Trading: Buy at the lower boundary of the channel and take profits near the upper boundary.
- Stop Loss: Below the lower boundary.
Example 1 (XAU/USD):
- Channel between $1,920 and $1,960.
- Buy at $1,920, stop at $1,910, target $1,960.
Example 2:
- Channel between $1,900 and $1,940.
- Buy at $1,900, stop at $1,890, target $1,940.
27. Price Channel (Bearish)
- Formation: Parallel downward-sloping lines that contain price movement.
- Trading: Sell at the upper boundary and take profits near the lower boundary.
- Stop Loss: Above the upper boundary.
Example 1 (XAU/USD):
- Channel between $1,950 and $1,910.
- Sell at $1,950, stop at $1,960, target $1,910.
Example 2:
- Channel between $1,940 and $1,900.
- Sell at $1,940, stop at $1,950, target $1,900.
28. Bullish Channel Breakout
- Formation: Price breaks out of a previously downward-sloping channel.
- Trading: Enter long after the breakout above the upper channel line.
- Stop Loss: Below the breakout point.
Example 1 (XAU/USD):
- Channel between $1,900 and $1,880.
- Buy above $1,900, stop at $1,880, target $1,920.
Example 2:
- Channel between $1,940 and $1,920.
- Buy above $1,940, stop at $1,920, target $1,960.
29. Bearish Channel Breakout
- Formation: Price breaks out of a previously upward-sloping channel.
- Trading: Enter short after the breakout below the lower channel line.
- Stop Loss: Above the breakout point.
Example 1 (XAU/USD):
- Channel between $1,940 and $1,920.
- Sell below $1,920, stop at $1,940, target $1,900.
Example 2:
- Channel between $1,960 and $1,940.
- Sell below $1,940, stop at $1,960, target $1,920.
30. Parabolic Curve
- Formation: A steep, accelerating uptrend that eventually leads to a sharp reversal.
- Trading: Enter long while the price follows the curve, but be ready to short after the reversal.
- Stop Loss: Below the curve’s lower boundary for longs and above the curve’s upper boundary for shorts.
Example 1 (XAU/USD):
- Parabolic curve from $1,880 to $1,940.
- Buy at $1,940, stop at $1,920, target $2,000.
Example 2:
- Reversal forms after $2,000, sell below $1,980, stop at $2,
000, target $1,940.
31. Double Top
- Formation: Two peaks of similar height followed by a break below the neckline (support level) signaling a reversal of an uptrend.
- Trading: Enter short when the price breaks below the neckline.
- Stop Loss: Above the second peak.
Example 1 (XAU/USD):
- Two peaks form at $1,950 with support at $1,920. Sell below $1,920, stop at $1,950, target $1,880.
Example 2:
- Two peaks at $1,980, support at $1,940. Sell below $1,940, stop at $1,980, target $1,900.
32. Double Bottom
- Formation: Two troughs of similar depth followed by a break above the neckline (resistance level), signaling a reversal of a downtrend.
- Trading: Enter long when the price breaks above the neckline.
- Stop Loss: Below the second trough.
Example 1 (XAU/USD):
- Two troughs form at $1,900 with resistance at $1,930. Buy above $1,930, stop at $1,900, target $1,960.
Example 2:
- Two troughs at $1,920, resistance at $1,950. Buy above $1,950, stop at $1,920, target $1,980.
33. Head and Shoulders (Bearish)
- Formation: A peak (head) between two smaller peaks (shoulders), with a break below the neckline signaling a trend reversal.
- Trading: Enter short when the price breaks below the neckline.
- Stop Loss: Above the right shoulder.
Example 1 (XAU/USD):
- Left shoulder at $1,940, head at $1,960, right shoulder at $1,950, neckline at $1,920. Sell below $1,920, stop at $1,950, target $1,880.
Example 2:
- Left shoulder at $1,970, head at $1,990, right shoulder at $1,980, neckline at $1,950. Sell below $1,950, stop at $1,980, target $1,920.
34. Inverse Head and Shoulders (Bullish)
- Formation: A trough (head) between two higher troughs (shoulders), with a break above the neckline signaling a trend reversal.
- Trading: Enter long when the price breaks above the neckline.
- Stop Loss: Below the right shoulder.
Example 1 (XAU/USD):
- Left shoulder at $1,920, head at $1,900, right shoulder at $1,910, neckline at $1,930. Buy above $1,930, stop at $1,910, target $1,960.
Example 2:
- Left shoulder at $1,880, head at $1,860, right shoulder at $1,870, neckline at $1,900. Buy above $1,900, stop at $1,870, target $1,940.
35. Rising Wedge (Bearish Reversal)
- Formation: A contracting upward-sloping channel that signals weakening momentum in an uptrend, eventually leading to a breakout downward.
- Trading: Enter short when the price breaks below the wedge’s lower boundary.
- Stop Loss: Above the wedge’s upper boundary.
Example 1 (XAU/USD):
- Wedge forms between $1,940 and $1,960. Sell below $1,940, stop at $1,960, target $1,900.
Example 2:
- Wedge forms between $1,900 and $1,920. Sell below $1,900, stop at $1,920, target $1,860.
36. Falling Wedge (Bullish Reversal)
- Formation: A contracting downward-sloping channel that signals weakening momentum in a downtrend, eventually leading to a breakout upward.
- Trading: Enter long when the price breaks above the wedge’s upper boundary.
- Stop Loss: Below the wedge’s lower boundary.
- Wedge forms between $1,900 and $1,880. Buy above $1,900, stop at $1,880, target $1,940.
Example 2:
- Wedge forms between $1,920 and $1,900. Buy above $1,920, stop at $1,900, target $1,960.
37. Triple Top
- Formation: Three peaks of similar height, signaling a reversal of an uptrend when the price breaks below the neckline (support level).
- Trading: Enter short when the price breaks below the neckline.
- Stop Loss: Above the third peak.
Example 1 (XAU/USD):
- Three peaks at $1,950 with support at $1,920. Sell below $1,920, stop at $1,950, target $1,880.
Example 2:
- Peaks at $1,980, support at $1,940. Sell below $1,940, stop at $1,980, target $1,900.
38. Triple Bottom
- Formation: Three troughs of similar depth, signaling a reversal of a downtrend when the price breaks above the neckline (resistance level).
- Trading: Enter long when the price breaks above the neckline.
- Stop Loss: Below the third trough.
Example 1 (XAU/USD):
- Three troughs form at $1,900 with resistance at $1,930. Buy above $1,930, stop at $1,900, target $1,960.
Example 2:
- Troughs at $1,920, resistance at $1,950. Buy above $1,950, stop at $1,920, target $1,980.
39. Broadening Formation (Bearish)
- Formation: Expanding price highs and lows, indicating increasing volatility. A bearish reversal occurs when the price breaks the lower boundary.
- Trading: Enter short when the price breaks the lower boundary.
- Stop Loss: Above the last high.
Example 1 (XAU/USD):
- Expanding pattern with highs at $1,960 and lows at $1,920. Sell below $1,920, stop at $1,960, target $1,880.
Example 2:
- Highs at $1,980, lows at $1,940. Sell below $1,940, stop at $1,980, target $1,900.
40. Broadening Formation (Bullish)
- Formation: Expanding price highs and lows, signaling increasing volatility. A bullish reversal occurs when the price breaks the upper boundary.
- Trading: Enter long when the price breaks the upper boundary.
- Stop Loss: Below the last low.
Example 1 (XAU/USD):
- Expanding pattern with highs at $1,920 and lows at $1,880. Buy above $1,920, stop at $1,880, target $1,960.
Example 2:
- Highs at $1,940, lows at $1,900. Buy above $1,940, stop at $1,900, target $1,980.
41. Diamond Top
- Formation: Price forms a diamond shape after an uptrend, signaling a potential reversal.
- Trading: Enter short when the price breaks below the lower boundary of the diamond.
- Stop Loss: Above the highest point of the pattern.
Example 1 (XAU/USD):
- Diamond forms between $1,940 and $1,900. Sell below $1,900, stop at $1,940, target $1,860.
Example 2:
- Diamond forms between $1,980 and $1,940. Sell below $1,940, stop at $1,980, target $1,900.
42. Diamond Bottom
- Formation: Price forms a diamond shape after a downtrend, signaling a potential reversal.
- Trading: Enter long when the price breaks above the upper boundary of the diamond.
- Stop Loss: Below the lowest point of the pattern.
Example 1 (XAU/USD):
- Diamond forms between $1,900 and $1,940. Buy above $1,940, stop at $1,900, target $1,980.
Example 2:
- Diamond forms between $1,860 and $1,900. Buy above $1,900, stop at $1,860, target $1,940.
43. Rounding Top
- Formation: A gradual curving top after an uptrend, signaling a bearish reversal.
- Trading: Enter short after the price confirms the reversal by breaking below support.
- Stop Loss: Above the highest point of the pattern.
Example 1 (XAU/USD):
- Rounding top forms between $1,920 and $1,960. Sell below $1,920, stop at $1,960, target $1,880.
Example 2:
- Top forms between $1,980 and $1,
940. Sell below $1,940, stop at $1,980, target $1,900.
44. Rounding Bottom
- Formation: A gradual curving bottom after a downtrend, signaling a bullish reversal.
- Trading: Enter long after the price confirms the reversal by breaking above resistance.
- Stop Loss: Below the lowest point of the pattern.
Example 1 (XAU/USD):
- Rounding bottom forms between $1,900 and $1,940. Buy above $1,940, stop at $1,900, target $1,980.
Example 2:
- Bottom forms between $1,880 and $1,920. Buy above $1,920, stop at $1,880, target $1,960.
Additional Reversal Chart Patterns
45. Broadening Formation (Bullish)
- Formation: Similar to the bearish version, but indicates increasing volatility with the potential for a bullish reversal when the price breaks above the upper boundary.
- Trading: Enter long when the price breaks above the upper boundary.
- Stop Loss: Below the last low.
Example 1 (XAU/USD):
- Broadening pattern with highs at $1,960 and lows at $1,900. Buy above $1,960, stop at $1,900, target $2,000.
Example 2:
- Highs at $1,980, lows at $1,920. Buy above $1,980, stop at $1,920, target $2,020.
46. Bullish Flag
- Formation: A strong price movement followed by a consolidation phase that resembles a flag, signaling continuation.
- Trading: Enter long when the price breaks above the flag’s upper boundary.
- Stop Loss: Below the flag’s lower boundary.
Example 1 (XAU/USD):
- Flagpole from $1,900 to $1,950, consolidation between $1,950 and $1,920. Buy above $1,950, stop at $1,920, target $2,000.
Example 2:
- Flagpole from $1,920 to $1,970, consolidation between $1,970 and $1,950. Buy above $1,970, stop at $1,950, target $2,020.
47. Bearish Flag
- Formation: A strong price movement followed by a consolidation phase that resembles a flag, signaling continuation.
- Trading: Enter short when the price breaks below the flag’s lower boundary.
- Stop Loss: Above the flag’s upper boundary.
Example 1 (XAU/USD):
- Flagpole from $1,960 to $1,910, consolidation between $1,910 and $1,930. Sell below $1,910, stop at $1,930, target $1,870.
Example 2:
- Flagpole from $1,940 to $1,890, consolidation between $1,890 and $1,910. Sell below $1,890, stop at $1,910, target $1,850.
48. Bullish Rectangular Pattern
- Formation: A rectangular formation where price bounces between two horizontal lines, indicating accumulation before a bullish breakout.
- Trading: Enter long when the price breaks above the resistance line.
- Stop Loss: Below the support line.
Example 1 (XAU/USD):
- Rectangle between $1,910 (support) and $1,950 (resistance). Buy above $1,950, stop at $1,910, target $1,980.
Example 2:
- Rectangle between $1,880 and $1,920. Buy above $1,920, stop at $1,880, target $1,950.
49. Bearish Rectangular Pattern
- Formation: A rectangular formation where price bounces between two horizontal lines, indicating distribution before a bearish breakout.
- Trading: Enter short when the price breaks below the support line.
- Stop Loss: Above the resistance line.
Example 1 (XAU/USD):
- Rectangle between $1,960 (resistance) and $1,920 (support). Sell below $1,920, stop at $1,960, target $1,880.
Example 2:
- Rectangle between $1,950 and $1,910. Sell below $1,910, stop at $1,950, target $1,870.
50. Channel Up (Bullish)
- Formation: Parallel upward-moving trendlines indicating a strong bullish trend.
- Trading: Buy near the lower boundary of the channel.
- Stop Loss: Below the last swing low.
Example 1 (XAU/USD):
- Channel forms between $1,900 and $1,950. Buy at $1,900, stop at $1,890, target $1,980.
Example 2:
- Channel forms between $1,920 and $1,960. Buy at $1,920, stop at $1,910, target $2,000.
51. Channel Down (Bearish)
- Formation: Parallel downward-moving trendlines indicating a strong bearish trend.
- Trading: Sell near the upper boundary of the channel.
- Stop Loss: Above the last swing high.
Example 1 (XAU/USD):
- Channel forms between $1,950 and $1,900. Sell at $1,950, stop at $1,960, target $1,870.
Example 2:
- Channel forms between $1,980 and $1,940. Sell at $1,980, stop at $1,990, target $1,900.
52. Vertical Channel (Bullish)
- Formation: A steep upward movement indicating strong buying interest, followed by consolidation.
- Trading: Buy on the pullbacks within the channel.
- Stop Loss: Below the last swing low.
Example 1 (XAU/USD):
- Channel forms from $1,850 to $1,900. Buy at $1,880, stop at $1,860, target $1,950.
Example 2:
- Channel forms from $1,900 to $1,950. Buy at $1,920, stop at $1,900, target $2,000.
53. Vertical Channel (Bearish)
- Formation: A steep downward movement indicating strong selling interest, followed by consolidation.
- Trading: Sell on the rallies within the channel.
- Stop Loss: Above the last swing high.
Example 1 (XAU/USD):
- Channel forms from $1,950 to $1,900. Sell at $1,950, stop at $1,960, target $1,870.
Example 2:
- Channel forms from $1,980 to $1,940. Sell at $1,980, stop at $1,990, target $1,900.
54. Price Compression (Bullish)
- Formation: A series of higher lows and horizontal resistance indicating a buildup of pressure before a breakout.
- Trading: Enter long when the price breaks above the resistance.
- Stop Loss: Below the last swing low.
Example 1 (XAU/USD):
- Higher lows at $1,900 and $1,910 with resistance at $1,940. Buy above $1,940, stop at $1,910, target $1,980.
Example 2:
- Higher lows at $1,880 and $1,890 with resistance at $1,920. Buy above $1,920, stop at $1,890, target $1,950.
55. Price Compression (Bearish)
- Formation: A series of lower highs and horizontal support indicating a buildup of pressure before a breakdown.
- **Trading**: Enter short when the price breaks below the support.
- **Stop Loss**: Above the last swing high.
**Example 1 (XAU/USD)**:
- Lower highs at $1,940 and $1,930 with support at $1,900. Sell below $1,900, stop at $1,940, target $1,860.
Example 2:
- Lower highs at $1,920 and $1,910 with support at $1,880. Sell below $1,880, stop at $1,920, target $1,850.
56. Catapult Pattern (Bullish)
- Formation: A quick pullback followed by a strong price movement upward, indicating renewed bullish interest.
- Trading: Buy on the breakout above the high after the pullback.
- Stop Loss: Below the low of the pullback.
Example 1 (XAU/USD):
- Pullback to $1,910 followed by a breakout above $1,940. Buy above $1,940, stop at $1,900, target $1,980.
Example 2:
- Pullback to $1,890 followed by a breakout above $1,920. Buy above $1,920, stop at $1,880, target $1,950.
57. Catapult Pattern (Bearish)
- Formation: A quick rally followed by a strong price movement downward, indicating renewed bearish interest.
- Trading: Sell on the breakdown below the low after the rally.
- Stop Loss: Above the high of the rally.
Example 1 (XAU/USD):
- Rally to $1,950 followed by a breakdown below $1,920. Sell below $1,920, stop at $1,950, target $1,890.
Example 2:
- Rally to $1,980 followed by a breakdown below $1,940. Sell below $1,940, stop at $1,980, target $1,900.
58. Gartley Pattern
- Formation: A specific Fibonacci retracement pattern indicating potential reversals.
- Trading: Enter long at the completion of the pattern if it shows bullish divergence.
- Stop Loss: Below the pattern
's point A.
Example 1 (XAU/USD):
- Pattern completion at $1,900. Buy at $1,900, stop at $1,880, target $1,960.
Example 2:
- Pattern completion at $1,940. Buy at $1,940, stop at $1,920, target $2,000.
59. Bat Pattern
- Formation: A variation of the Gartley pattern with different Fibonacci ratios indicating potential reversals.
- Trading: Enter long at the completion of the pattern with confirmation.
- Stop Loss: Below the pattern's point A.
Example 1 (XAU/USD):
- Pattern completion at $1,910. Buy at $1,910, stop at $1,890, target $1,970.
Example 2:
- Pattern completion at $1,950. Buy at $1,950, stop at $1,930, target $2,010.
60. Crab Pattern
- Formation: A deep retracement pattern with specific Fibonacci ratios indicating potential reversals.
- Trading: Enter long at the completion of the pattern with confirmation.
- Stop Loss: Below the pattern's point A.
Example 1 (XAU/USD):
- Pattern completion at $1,900. Buy at $1,900, stop at $1,880, target $1,960.
Example 2:
- Pattern completion at $1,940. Buy at $1,940, stop at $1,920, target $2,000
Continuation Chart Patterns
61. Continuation Triangle (Bullish)
- Formation: A series of higher lows and lower highs creating a converging triangle pattern in an uptrend, signaling a continuation of the trend.
- Trading: Enter long when the price breaks above the upper boundary.
- Stop Loss: Below the last swing low.
Example 1 (XAU/USD):
- Triangle forms between $1,920 (support) and $1,950 (resistance). Buy above $1,950, stop at $1,910, target $2,000.
Example 2:
- Triangle forms between $1,900 and $1,940. Buy above $1,940, stop at $1,880, target $1,980.
62. Continuation Triangle (Bearish)
- Formation: A series of lower highs and higher lows creating a converging triangle pattern in a downtrend, signaling a continuation of the trend.
- Trading: Enter short when the price breaks below the lower boundary.
- Stop Loss: Above the last swing high.
Example 1 (XAU/USD):
- Triangle forms between $1,950 (resistance) and $1,910 (support). Sell below $1,910, stop at $1,950, target $1,870.
Example 2:
- Triangle forms between $1,940 and $1,900. Sell below $1,900, stop at $1,940, target $1,860.
63. Pennant (Bullish)
- Formation: A small symmetrical triangle following a strong price movement, signaling a continuation of the uptrend.
- Trading: Enter long when the price breaks above the upper boundary.
- Stop Loss: Below the last swing low.
Example 1 (XAU/USD):
- Pennant forms after a price surge to $1,950. Buy above $1,950, stop at $1,930, target $2,000.
Example 2:
- Pennant forms after a price surge to $1,900. Buy above $1,900, stop at $1,880, target $1,960.
64. Pennant (Bearish)
- Formation: A small symmetrical triangle following a strong price movement, signaling a continuation of the downtrend.
- Trading: Enter short when the price breaks below the lower boundary.
- Stop Loss: Above the last swing high.
Example 1 (XAU/USD):
- Pennant forms after a price drop to $1,910. Sell below $1,910, stop at $1,930, target $1,870.
Example 2:
- Pennant forms after a price drop to $1,940. Sell below $1,940, stop at $1,960, target $1,900.
65. Cup and Handle (Bullish)
- Formation: A rounded bottom (cup) followed by a consolidation (handle), indicating potential bullish continuation.
- Trading: Enter long when the price breaks above the resistance level (handle).
- Stop Loss: Below the lowest point of the handle.
Example 1 (XAU/USD):
- Cup forms at $1,850 and the handle at $1,880. Buy above $1,880, stop at $1,850, target $1,940.
Example 2:
- Cup forms at $1,900 with a handle at $1,930. Buy above $1,930, stop at $1,900, target $1,980.
66. Inverted Cup and Handle (Bearish)
- Formation: An inverted rounded top followed by consolidation, indicating potential bearish continuation.
- Trading: Enter short when the price breaks below the support level (handle).
- Stop Loss: Above the highest point of the handle.
Example 1 (XAU/USD):
- Inverted cup forms at $1,950 with a handle at $1,920. Sell below $1,920, stop at $1,950, target $1,870.
Example 2:
- Inverted cup forms at $1,940 with a handle at $1,910. Sell below $1,910, stop at $1,940, target $1,880.
67. Bullish Rectangle
- Formation: A price pattern where price moves between two horizontal levels, indicating accumulation before a breakout upward.
- Trading: Enter long when the price breaks above the resistance.
- Stop Loss: Below the support.
Example 1 (XAU/USD):
- Rectangle between $1,900 (support) and $1,950 (resistance). Buy above $1,950, stop at $1,900, target $2,000.
Example 2:
- Rectangle between $1,880 and $1,920. Buy above $1,920, stop at $1,880, target $1,980.
68. Bearish Rectangle
- Formation: A price pattern where price moves between two horizontal levels, indicating distribution before a breakdown.
- Trading: Enter short when the price breaks below the support.
- Stop Loss: Above the resistance.
Example 1 (XAU/USD):
- Rectangle between $1,950 (resistance) and $1,910 (support). Sell below $1,910, stop at $1,950, target $1,870.
Example 2:
- Rectangle between $1,940 and $1,900. Sell below $1,900, stop at $1,940, target $1,860.
69. Ascending Channel (Bullish)
- Formation: A series of higher highs and higher lows creating parallel upward trendlines, indicating continuation of an uptrend.
- Trading: Buy near the lower boundary of the channel.
- Stop Loss: Below the last swing low.
Example 1 (XAU/USD):
- Channel forms between $1,900 and $1,950. Buy at $1,900, stop at $1,880, target $2,000.
Example 2:
- Channel forms between $1,920 and $1,970. Buy at $1,920, stop at $1,900, target $2,020.
70. Descending Channel (Bearish)
- Formation: A series of lower highs and lower lows creating parallel downward trendlines, indicating continuation of a downtrend.
- Trading: Sell near the upper boundary of the channel.
- Stop Loss: Above the last swing high.
Example 1 (XAU/USD):
- Channel forms between $1,950 and $1,900. Sell at $1,950, stop at $1,970, target $1,850.
Example 2:
- Channel forms between $1,980 and $1,940. Sell at $1,980, stop at $2,000, target $1,900.