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Binary Chart Patterns

Trading

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79 views2 pages

Binary Chart Patterns

Trading

Uploaded by

mikedarby716
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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10 Surefire Binary Chart Patterns

Essential Patterns for Binary Options Trading

1. Double Top
The Double Top pattern is a bearish reversal pattern that occurs after an uptrend. It signifies the

weakening of the upward movement, with two peaks forming at the same resistance level. After the

second peak, the price typically falls below the neckline, confirming the reversal.

2. Double Bottom
The Double Bottom pattern is the opposite of the Double Top. It is a bullish reversal pattern that

forms after a downtrend, with two troughs at the same support level. After the second trough, the

price typically rises above the neckline, confirming a reversal upward.

3. Head and Shoulders


The Head and Shoulders pattern is a bearish reversal pattern that forms after an uptrend. It has

three peaks: a higher central peak (head) and two lower side peaks (shoulders). When the price

breaks below the neckline, it signals a potential move downward.

4. Inverse Head and Shoulders


The Inverse Head and Shoulders is a bullish reversal pattern that forms after a downtrend. It

consists of three troughs: a lower central trough (head) and two higher side troughs (shoulders).

Once the price breaks above the neckline, it signals a reversal to the upside.

5. Rising Wedge
The Rising Wedge is a bearish continuation pattern that occurs in a downtrend or reversal after an

uptrend. It forms when the price action narrows upward with converging trendlines, indicating
weakening momentum. A break below the lower trendline signals a potential downward move.

6. Falling Wedge
The Falling Wedge is a bullish continuation or reversal pattern. It forms during a downtrend when

price action narrows downward with converging trendlines. A break above the upper trendline

signals a potential upward move.

7. Bullish Flag
The Bullish Flag pattern is a continuation pattern that forms after a sharp upward move. It shows a

brief consolidation in the form of a downward-sloping channel, followed by a breakout to the upside.

This pattern suggests strong upward momentum.

8. Bearish Flag
The Bearish Flag is the opposite of the Bullish Flag and appears after a sharp downward move. It

forms a brief consolidation in an upward-sloping channel before breaking downward. This pattern

indicates strong bearish momentum.

9. Bullish Engulfing
The Bullish Engulfing pattern is a two-candle reversal pattern where a smaller bearish candle is

followed by a larger bullish candle that completely engulfs the first. This signals a potential reversal

to the upside after a downtrend.

10. Bearish Engulfing


The Bearish Engulfing pattern is the opposite of the Bullish Engulfing. It consists of a smaller bullish

candle followed by a larger bearish candle that engulfs the first. This signals a potential reversal to

the downside after an uptrend.

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