Justsachin - Trading Patterns

Cup Handle Breakout Resistance

Double Top/Bottom

A reversal pattern showing two peaks or troughs at approximately the same price level. Double tops indicate bearish reversals, while double bottoms indicate bullish reversals.

Reliability: 78% success rate when volume confirmed
Best Timeframes: Weekly, Daily, 4H
Double Top (Bearish) Double Bottom (Bullish)
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Cup Handle Breakout Resistance

Double Top/Bottom

Reliability: 78% success rate when volume confirmed
Best Timeframes: Weekly, Daily, 4H

Pattern Types:

  • Double Top (Bearish)
  • Double Bottom (Bullish)

Identification Points:

  • Two peaks/troughs at similar levels
  • Clear neckline as support/resistance
  • Volume typically higher on first peak/trough
  • Space between peaks/troughs (1-3 weeks ideal)

Best Markets:

  • EUR/USD
  • USD/CHF
  • GBP/JPY

Trading Tips:

  • Confirm break of neckline
  • Look for volume increase on breakout
  • Set targets equal to height of pattern
  • Use time filters for confirmation

Common Mistakes to Avoid:

  • Trading minor double tops/bottoms
  • Ignoring market context
  • Missing volume confirmation
Flag Pole Flag Channel Breakout Volume Bullish Flag Pattern Flag Pole Flag Channel Breakout Volume Bearish Flag Pattern Key Characteristics: 1. Strong upward move (flag pole) 2. Consolidation in downward channel 3. Volume decreases in flag 4. Breakout with increased volume Key Characteristics: 1. Strong downward move (flag pole) 2. Consolidation in upward channel 3. Volume decreases in flag 4. Breakout with increased volume

Bull/Bear Flag

A continuation pattern that forms a temporary pause in the current trend. The pattern consists of a strong move (flag pole) followed by a consolidation period (flag).

Reliability: 85% success rate in trending markets
Best Timeframes: 4H, 1H, 30M
Bullish Flag (Uptrend) Bearish Flag (Downtrend)
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Flag Pole Flag Channel Breakout Volume Bullish Flag Pattern Flag Pole Flag Channel Breakout Volume Bearish Flag Pattern Key Characteristics: 1. Strong upward move (flag pole) 2. Consolidation in downward channel 3. Volume decreases in flag 4. Breakout with increased volume Key Characteristics: 1. Strong downward move (flag pole) 2. Consolidation in upward channel 3. Volume decreases in flag 4. Breakout with increased volume

Bull/Bear Flag

Reliability: 85% success rate in trending markets
Best Timeframes: 4H, 1H, 30M

Pattern Types:

  • Bullish Flag (Uptrend)
  • Bearish Flag (Downtrend)

Identification Points:

  • Strong initial move (flag pole)
  • Parallel channel in opposite direction
  • Volume decreases during flag formation
  • Brief duration (1-3 weeks maximum)

Best Markets:

  • USD/JPY
  • EUR/JPY
  • GBP/USD

Trading Tips:

  • Trade in direction of main trend
  • Enter on break of flag resistance/support
  • Target projection equals flag pole height
  • Place stop below/above flag pattern

Common Mistakes to Avoid:

  • Trading against main trend
  • Waiting too long for confirmation
  • Setting targets too far
Selling Accumulation Buying Rounding Bottom (Bullish) Breakout Resistance Buying Distribution Selling Rounding Top (Bearish) Breakdown Support Rounding Bottom Characteristics: 1. Gradual change from downtrend to uptrend 2. Volume follows price curve (U-shaped) 3. Accumulation phase in bottom area 4. Clear breakout above resistance 5. Duration: typically months to form Rounding Top Characteristics: 1. Gradual change from uptrend to downtrend 2. Volume follows price curve (inverted U) 3. Distribution phase in top area 4. Clear breakdown below support 5. Duration: typically months to form Trading Guidelines: • Wait for break of resistance/support • Confirm with volume pattern • Look for sector/market confirmation • Target = height of pattern • Stop loss below pattern low/above pattern high

Rounding Patterns

Gradual, curved price movements indicating a smooth transition between trends.

Reliability: 65% success rate when volume confirms
Best Timeframes: Weekly, Daily
Rounding Bottom (Bullish) Rounding Top (Bearish)
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Selling Accumulation Buying Rounding Bottom (Bullish) Breakout Resistance Buying Distribution Selling Rounding Top (Bearish) Breakdown Support Rounding Bottom Characteristics: 1. Gradual change from downtrend to uptrend 2. Volume follows price curve (U-shaped) 3. Accumulation phase in bottom area 4. Clear breakout above resistance 5. Duration: typically months to form Rounding Top Characteristics: 1. Gradual change from uptrend to downtrend 2. Volume follows price curve (inverted U) 3. Distribution phase in top area 4. Clear breakdown below support 5. Duration: typically months to form Trading Guidelines: • Wait for break of resistance/support • Confirm with volume pattern • Look for sector/market confirmation • Target = height of pattern • Stop loss below pattern low/above pattern high

Rounding Patterns

Reliability: 65% success rate when volume confirms
Best Timeframes: Weekly, Daily

Pattern Types:

  • Rounding Bottom (Bullish)
  • Rounding Top (Bearish)

Identification Points:

  • Smooth, curved price action
  • Gradual transition in trend
  • Volume follows price curve
  • Clear completion point

Best Markets:

  • EUR/USD
  • GBP/USD
  • USD/JPY

Trading Tips:

  • Wait for pattern completion
  • Confirm with volume pattern
  • Use measured move targets
  • Place stops below/above pattern

Common Mistakes to Avoid:

  • Early entry
  • Ignoring volume pattern
  • Unclear profit targets