Best Chart Patterns for Day Trading

A short consolidation after a sharp rally (the 'pole'). The flag slopes slightly down before the uptrend continues.

A short consolidation after a sharp decline. The flag slopes slightly up before the downtrend resumes.

Similar to a bull flag but with converging trendlines forming a small triangle after a sharp rally.

Similar to a bear flag but with converging trendlines forming a small triangle after a sharp decline.

A bullish pattern with a flat upper resistance and rising lower trendline. Breakout typically occurs upward.

A bearish pattern with a flat lower support and falling upper trendline. Breakdown typically occurs downward.

Converging trendlines with no directional bias. The breakout direction determines the trade — wait for confirmation.

A consolidation pattern where price bounces between horizontal support and resistance. Trade the breakout direction.

A small red candle followed by a larger green candle that fully engulfs it. Strong bullish reversal signal.

A small green candle followed by a larger red candle that fully engulfs it. Strong bearish reversal signal.

Open and close are virtually equal, showing indecision. Can signal reversal when found after a strong trend.

Small body at top with long lower shadow. Bullish reversal signal at support or after a downtrend.

Small body at bottom with long upper shadow. Bearish reversal signal at resistance.