If your support and resistance lines make a pennant, be sure that it most likely means that the price will go into a breakout. Usually, those tend to last 1-3 weeks and grow volume. You see that support and resistance line getting closer - the pennant is coming!
2. Cup and Handle
A very simple-looking pattern that makes sense once you look at the chart. It looks exactly like a cup with - yeah, you guessed it - a handle. The cup itself makes a u-shape, and a handle goes slightly downward - that’s where you know the trend is going to go up.
Make yourself a cup of steaming tea and get ready for the price going up.
3. Bullish and bearish symmetric triangles
This one is pretty easy to distinguish from a pennant - here you can spot a perfectly even triangle with an acute angle pointing downwards. Support and resistance lines come closer to each other to create a breakout and a quick price rise. Watch out for triangles!
4. Rounding Bottom
What goes around comes around - and this pattern shows it perfectly. Here you can see the price going up and down again in an almost symmetrical bowl (without any handle, mind it!). This exact pattern is amazing for analysis of the previous months/years.
5. Flag Continuation
Both support and resistance lines are parallel to each other - you can tell this one looks like a flag. Once you see the price breaking through this configuration - it’s time to open a deal. This one is pretty simple for beginners - try to find it on the charts for some of your previous deals.
Patterns are extremely important since they can make your life so much easier. Just remember that during the extremely volatile circumstances like we have now with our economy, the pattern rule may not always apply. Find the most stable assets and practice using their charts as references first.