Flag  Futures  Trading  Chart  Pattern  

What is a Flag Futures Chart Pattern?

A flag chart pattern is a continuation pattern resembling a

parallelogram formed by two trendlines marking support
and resistance. After a large price movement, the market
can slow down before resuming that trend.

How Do I Recognize a Flag Futures Chart Pattern?

Usually, a flag occurs on an upwards or downwards

slope. The pattern is complete when the price breaks out.
The flag also tends to be in the opposite direction of an
initial price movement. Also note the flagpole, which
marks the first sharp movement to the last sharp
movement.

See the example below:

 
  

What Does a Flag Chart Pattern Mean?

Once the contract price breaks through support or resistance, a buy or sell signal is
formed, usually on heavier volume.

Head  and  Shoulders  Bottom  Futures  Trading  

Chart  Pattern  
What is a Head and Shoulders Bottom Futures Chart Pattern?

 
  

A head and shoulders bottom is a reversal pattern which

can indicate that a contract is about to move against the
previous trend.

How Do I Recognize a Head and Shoulders Bottom

Futures Chart Pattern?

A head and shoulders bottom pattern has three peaks --

two smaller ones on the sides and one larger one in the
middle.

First, a contract falls to a new low and then rises back to a new high (the "neckline,"
which marks resistance). Then, the contract hits an even lower lower before rising back
up to the previous right. The right shoulder is formed when the contract falls back down
but not as low as the previous low, and then rises back up to the high. The pattern is
complete when the price breaks through the previous high, or the neckline.

See the example below:

 
  

What Does a Head and Shoulders Bottom Chart Pattern Mean?

The head and shoulders bottom pattern can indicate that a new upward trend is about to happen.
Watch volume, as breakouts will tend to occur on high-volume moves.

Head  and  Shoulders  Top  Futures  Trading  Chart  

Pattern  
What is a Head and Shoulders Top Chart Pattern

A head and shoulders top is a reversal pattern which can

indicate that a contract is about to move against the previous
trend.

 
  

How Do I Recognize a Head and Shoulders Top Futures Chart Pattern?

A head and shoulders top pattern has three peaks -- two smaller ones on the sides and one
larger one in the middle.

First, a contract rises to a new high and then falls back to a new low (the "neckline,"
which marks support). Then, the contract hits an even higher high before dropping back
down to the previous low. The right shoulder is formed when the contract rises back up
but not as high as the previous high, and then falls back down to the low. The pattern is
complete when the price breaks through the previous low, or the neckline.

See the example below:

What Does a Head and Shoulders Top Chart Pattern Mean?

The head and shoulders top pattern can indicate that a new downward trend is about to
happen. Watch volume, as breakouts will tend to occur on high-volume moves.

 
  

Pennant  Futures  Trading  Chart  Pattern  

What is a Pennant Futures Chart Pattern?

A pennant chart pattern is a continuation pattern that

forms when support and resistance trendlines
converge. After a large price movement, the market
can slow down before resuming that trend.

How Do I Recognize a Pennant Futures Chart

Pattern?

Unlike triangles, support and resistance are not tested

multiple times. They mark a sideways price movement
after a period of sharp movement.

See the example below:

 
  

What Does a Pennant Chart Pattern Mean?

Once the contract price breaks through support or resistance, a buy or sell signal can be
formed, usually on heavier volume.

 
 

 
  

Rectangle  Bottom  Futures  Trading  Chart  

Pattern  
What is a Rectangle Bottom Futures Chart
Pattern?

A rectangle bottom is a chart pattern that starts

on a downtrend and marks a period of
consolidation before a breakout occurs.

How Do I Recognize a Rectangle Bottom

Futures Chart Pattern?

A rectangle bottom is formed when a price

bounces up and down between two parallel support and resistance lines.

See the example below:

 
  

What Does a Rectangle Bottom Chart Pattern Mean?

A rectangle bottom can break out in either direction. What can make it useful is that it
can indicate that once support or resistance is finally broken, a new trend is established in
that direction.

Rectangle  Top  Futures  Trading  Chart  Pattern  

What is a Rectangle Top Futures Chart
Pattern?

A rectangle top is a chart pattern starts on an

uptrend marks a period of consolidation before
a breakout occurs.

 
  

How Do I Recognize a Rectangle Top Futures Chart Pattern?

A rectangle top is formed when a price bounces up and down between two parallel
support and resistance lines.

See the example below:

What Does a Rectangle Top Chart Pattern Mean?

A rectangle top can break out in either direction. What can make it useful is that it can
indicate that once support or resistance is finally broken, a new trend is established in that
direction.

 
 
 

 
  

 
Rising  Wedge  Futures  
Trading  Chart  Pattern  
What is a Rising Wedge Futures Chart Pattern?

A rising wedge is a bearish reversal pattern. It can

indicate that an uptrend in a downward moving market
is about to end.

How Do I Recognize a Rising Wedge Futures Chart

Pattern?

As the price in a bear market moves up, the distance between highs and lows grows
smaller and smaller, until support and resistance converge and the price makes a
downturn.

See the example below:

 
  

What Does a Rising Wedge Chart Pattern Mean?

To be sure that this is indeed a rising wedge and a reversal is about to happen, watch
volume, as it should be descreasing. Also, the retrace should be below 50% of the
fibonnaci level.

 
 

 
  

Symmetrical  Triangle  Futures  Trading  Chart  

Pattern  
What is a Symmetrical Triangle Futures Chart Pattern?

A symmetrical triangle is a continuation pattern. It occurs during the

consolidation of a trend and can indicate that the previous trend is about
to continue.

How Do I Recognize a Symmetrical Triangle Futures Chart

Pattern?

A symmetrical triangle is formed by a dropping resistance line and a

rising support line.

See the example below:

 
  

What Does a Symmetrical Triangle Chart Pattern Mean?

The price will rise and fall within the triangle until support and resistance converge. At
that point, the apex, breakout occurs, usually in the direction of the previous trend, but it
can also move in the opposite direction.

Triple  Bottom  Futures  Trading  Chart  Pattern  

What is a Triple Bottom
Futures Chart Pattern?

A triple bottom is a bullish

reversal pattern that can
occur when a contract tests
a level of support three
times and then rises above
resistance.

How Do I Recognize a
Triple Bottom Futures
Chart Pattern?

A triple bottom chart pattern occurs when:

1. Price reaches a new high

2. The trend tests support and rises back to resistance
3. The price begins to move back to support, but rises to test resistance again
4. The price begins to move back to support again, but yet rally occurs, meeting
resistance
5. The price finally breaks resistance and establishes a new upward trend

See the example below:

 
  

What Does a Triple Bottom Chart Pattern Mean?

A triple bottom chart pattern points to a tug of war between buyers and sellers. While
sellers try to push the contract, buyers resist the downward trend. When once again the
bottom of the pattern isn't broken, the sellers begin to back off, leading the buyers to
dominate and send the trend upward.

Watch the new upward trend, as it may drop back down to the breakout point to test the
new support.

Since this pattern is similar to the double bottom chart pattern, but sure to watch for
when it breaks resistance. It is this move that ultimately signals the completion of the
pattern. Otherwise, the contract may continue to bounce up and down between support
and resistance.

 
  

Triple  Top  Futures  Trading  Chart  Pattern  

What is a Triple Top
Futures Chart Pattern?

A Triple top is a bearish

reversal pattern that can
occur when a contract tests
a level of resistance three
times, is unable to break
through, and then falls
below support.

How Do I Recognize a
Triple Top Futures
Chart Pattern?

A triple top chart pattern occurs when:

1. Price reaches a new high

2. The trend faces resistance and sells off to support
3. The price begins to move back to resistance, but another sell off occurs, meeting
support again
4. The price begins to move back to resistance again, but yet another sell off occurs,
meeting support
5. The price falls below support, establishing a downward trend

See the example below:

 
  

What Does a Triple Top Chart Pattern Mean?

A triple top chart pattern points to a tug of war between buyers and sellers. While buyers
try to push the contract, sellers resist the upward trend. When once again the top of the
pattern isn't broken, The buyers begin to back off, leading the sellers to dominate and
send the trend downward.

Watch volume in this scenario, as it is likely to increase once the contract is below
support. This support level may now become a new resistance level in the new trend.

Since this pattern is similar to the double top chart pattern, but sure to watch for when
it breaks support. It is this move that ultimately signals the completion of the pattern.
Otherwise, the contract may continue to bounce up and down between support and
resistance.

 
  

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transactions involves substantial risk of loss and is not suitable for all investors. You
should carefully consider whether trading is suitable for you in light of your
circumstances, knowledge, and financial resources. You may lose all or more of your
initial investment. Opinions, market data, and recommendations are subject to change at
any time.
 
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