TraderValue scans 1,500+ liquid US stocks every night after market close and detects 17 classic chart patterns — from bull flags and cup and handles to head and shoulders and ascending triangles. Click any pattern to see which stocks are showing it right now.
A bull flag forms after a sharp advance (the pole) followed by a tight, downward-sloping consolidation channel. It signals that buyers are resting before the next leg higher.
A bull pennant forms after a sharp advance (the pole) followed by a symmetrical triangular consolidation with converging trendlines. The tight coiling signals explosive continuation.
An ascending triangle has a flat resistance line at the top and a rising support line. Buyers are getting more aggressive each pullback, coiling energy for a breakout.
The inverse head and shoulders is a bottoming reversal pattern. A central trough (head) flanked by two higher troughs (shoulders) with a neckline. Breakout above the neckline signals trend reversal to the upside.
A double bottom forms when price makes two troughs at roughly the same level with a moderate peak between them (the neckline). It signals that sellers have been absorbed at this level twice — a reliable bullish reversal.
A triple bottom forms with three troughs at roughly the same support level. Three tests of support without a breakdown signals strong demand and a high-probability reversal to the upside.
The cup and handle is one of the most powerful continuation patterns. A U-shaped base (the cup) followed by a brief consolidation (the handle) sets up a high-volume breakout above prior resistance.
A falling wedge forms when price makes lower highs and lower lows within converging trendlines — but the highs are falling faster than the lows. This compression signals diminishing selling pressure and often precedes a bullish breakout.
A flat base is a tight sideways consolidation after an advance, holding within a narrow price range (typically 10–15%). It signals that holders are not selling and institutions are quietly accumulating before the next leg.
The Volatility Contraction Pattern (VCP), popularized by Mark Minervini, consists of 3–5 tight contractions of decreasing depth and duration. Each pivot is 20–50% shallower than the last. Institutional accumulation compresses the range before an explosive breakout.
A rounding bottom (also called a "saucer" or "rounding base") forms when a stock gradually transitions from a downtrend to an uptrend, forming a smooth U-shaped base. It reflects a slow shift in ownership from weak to strong hands.
An IPO base forms within the first 25 trading weeks after a stock goes public. After the IPO price discovery, the stock consolidates tightly before the first major breakout. These patterns often produce outsized moves because institutions are still accumulating.
The high tight flag (HTF) is one of the rarest and most explosive patterns — a stock doubles or more in 4–8 weeks (the pole), then consolidates 10–25% for 3–5 weeks (the flag). HTFs signal hypergrowth momentum and historically produce some of the largest short-term gains.
A bear flag forms after a sharp decline (the pole) followed by a tight, upward-sloping consolidation channel. It signals that sellers are resting before the next leg lower.
A bear pennant forms after a sharp decline (the pole) followed by a symmetrical triangular consolidation with converging trendlines. Confirms sustained selling pressure.
A descending triangle has a flat support line at the bottom and a declining resistance line. Sellers are increasingly aggressive at each bounce, building pressure for a breakdown.
The head and shoulders is one of the most reliable topping patterns. A central peak (head) flanked by two lower peaks (shoulders) with a neckline connecting the troughs. Breakdown below the neckline signals trend reversal.
A double top forms when price makes two peaks at roughly the same level with a moderate trough between them. The second peak failing to exceed the first signals exhaustion of buying pressure.
A triple top forms with three peaks at roughly the same resistance level. Three failed attempts to break higher confirms strong supply at that price and a high-probability reversal.
A rising wedge forms when price makes higher highs and higher lows but within converging trendlines — the lows are rising faster than the highs. This compression signals waning momentum and often precedes a sharp breakdown.
A symmetrical triangle has converging trendlines with lower highs and higher lows. It signals indecision and compressing volatility — a major move is imminent but direction is unresolved until the breakout.
The ABCD pattern is the most fundamental harmonic pattern. Price moves AB (impulse), retraces BC (38–88% of AB), then extends CD equal in time and price to AB. The D point is the entry zone — a classic measured move pattern.
An island reversal forms when a gap separates a cluster of price bars (the "island") from the prior trend. A gap up into the cluster, followed by a gap down out, creates a bearish island top. The reverse creates a bullish island bottom. Both signal abrupt exhaustion.
The Three Drives pattern is a harmonic reversal pattern with three successive extremes (drives) and two corrective waves between them. Each drive extends to approximately the 1.27× or 1.618× Fibonacci extension of the prior correction. The third drive is the completion and reversal zone.
A pennant reversal forms when a symmetrical triangle appears after a prolonged trend but resolves in the opposite direction — a false continuation that traps trend-followers. Volume is the key tell: volume contracts during the pennant but explodes on the reversal breakout.
A chart pattern is a recognizable formation on a price chart — like a bull flag, head and shoulders, or cup and handle — that historically precedes a specific type of price move. Traders use these patterns to time entries and exits.
Reliability varies by pattern and market context. Ascending triangles and cup and handles historically resolve to the upside 65–72% of the time when confirmed by volume. Always combine patterns with trend and momentum context (like SCTR and EdgeOS counts) for higher conviction.
Our Python scanner runs nightly after market close across 1,500+ liquid US stocks. Each pattern detector analyzes price structure, trendlines, and volume character to assign a confidence score (0–100%). Only detections with confidence above 55% are shown.
Continuation patterns (like bull flags, pennants, flat bases) form during an existing trend and signal that the trend will resume. Reversal patterns (like head and shoulders, double top) form at the end of a trend and signal a change of direction.
Yes. The Pattern Scan panel in the TraderValue workspace shows all active detections with confidence scores, SCTR, and links to open each symbol on a chart.
Pattern detections updated nightly after market close · For informational purposes only · Not investment advice