Chart Patterns: Head & Shoulders, Double Top/Bottom & More

By StockTrendz Editorial · Mar 19, 2026 · 11 min read · #Chart Patterns

Chart patterns are the crystallised footprints of institutional behavior. Day 19 covers the most reliable patterns used by professional traders worldwide.

Reversal Patterns

Head and Shoulders (H&S)

Three peaks — left shoulder, higher head, right shoulder — on increasing then decreasing volume. A bearish reversal pattern that forms at the end of uptrends.

Neckline = connecting the troughs between the three peaks
Entry: Short on neckline breakdown
Target: Measured move = distance from head to neckline, projected downward

Inverse H&SThe bullish mirror image. Three troughs, middle being deepest. Neckline breakout on high volume = powerful buy signal. One of the most reliable patterns in technical analysis.

Double Top

Price hits resistance twice with a valley between. Volume declines on second peak. Breaks neckline = bearish. Most effective when the two tops form over 2+ weeks with clear psychology behind it.

Double Bottom

Price finds support twice with a peak between. Bullish reversal. Most powerful when the second bottom has lower volume (sellers exhausted) and breaks neckline on high volume.

Continuation Patterns

Bull Flag

Strong up move (the flagpole) followed by a tight consolidation sloping slightly downward (the flag). Volume drops during consolidation. Breakout = trend continuation. Most reliable continuation pattern.

Cup and Handle

Price forms a rounded bottom (cup) then a brief pullback (handle). Classic Darvas Box / William O'Neil pattern. Target = depth of cup added to breakout point.

# Detect Double Bottom pattern
def detect_double_bottom(df, tolerance=0.03):
    lows = df['Low']
    candidates = []
    for i in range(20, len(lows)-10):
        # Find local minimum
        local_min = lows.iloc[i-20:i].min()
        recent_min = lows.iloc[i:i+10].min()
        # Check if two bottoms are within tolerance
        if abs(local_min - recent_min) / local_min < tolerance:
            candidates.append((i, local_min))
    return candidates

High Reliability Patterns

Inverse H&S, Bull Flag, Cup & Handle, Ascending Triangle. Win rate 60–70% when combined with volume.

Lower Reliability

Descending triangle (can break either way), symmetric triangle, wedge patterns. Need extra confirmation.

Today's Pattern Hunt

Open StockTrendz pattern scanner. Filter for Bull Flag and Inverse H&S patterns in the last 30 days. Study each occurrence. Did they follow through? What was the volume like on breakout?

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