First of all, I would like to point out that these patterns are not 100% guaranteed, but they have a high probability of being achieved.

Patterns with breakout upwards

1. Ascending triangle

This is a pattern with very few flaws. It must have at least 4 points (or more) for us to actually be able to trade it. To identify this pattern we must draw a line that finds at least two tops with a common value to act as resistance and another line at the rising bottoms that will act as support.

Both drawn lines must converge and form the triangle; see the image for a better understanding.

Confirmation of this pattern only occurs when resistance is broken.

2. Descending wedge

The falling wedge is a bullish pattern that rarely breaks downwards. Just like in the ascending triangle, there must be at least 4 points. The difference in this case is that both the tops and bottoms are descending; however, the bottoms are falling less sharply than the tops. To identify the pattern, simply draw a line that passes through the tops and another that passes through the bottoms.

Both drawn lines should meet at the end forming a descending wedge; see the image for better understanding.

Confirmation of this pattern occurs when the line drawn at the tops, which serves as resistance, is broken.

Patterns with a breakout downwards

1. Descending triangle

Similar to the ascending triangle, this pattern has a low error rate. It must have at least 4 points; two common bottoms acting as support lines and two descending tops acting as resistance. To identify the pattern, we must draw a line through the bottoms and another through the tops.

Both lines should converge and form the descending triangle; go back to the image to understand better.

Confirmation of this pattern occurs with the break of support.

2. Rising wedge

The rising wedge is a bearish pattern that rarely breaks upwards. To verify it, as with other patterns, we must have at least 4 points; in this case, both the tops and bottoms will be rising. The difference is that the tops are rising less sharply than the bottoms. To identify this pattern, simply draw a line that passes through the tops and another that passes through the bottoms.

Both lines should converge and form the rising wedge; go back to the image to understand better.

The pattern is confirmed when the line drawn at the bottom, which serves as support, is broken.

Patterns with breakouts in both directions

1. Symmetrical triangle

Unlike previous patterns, this figure indicates a greater chance of continuation of the previous movement; that is, if it occurs after an upward movement, the probability is greater of an upward breakout and if it occurs after a downward movement, the breakout should occur downward, continuing the trend.

The pattern must contain at least 4 points, two tops forming a downtrend line, which acts as resistance, and two bottoms that act as an uptrend line, which serve as support. To visualize the pattern, it is necessary to draw a line passing through the tops and another passing through the bottoms.

Both lines must converge to form the symmetrical triangle; go back to the image to understand better.

The pattern is confirmed upon breaking support or resistance.


2. Rectangle

Last but not least, my favorite pattern and one of the most common in the crypto world, is the rectangle. This pattern can break out in both directions and does not necessarily continue the previous trend. To consolidate the pattern, at least 3 points are needed; either two tops and one bottom or two bottoms and one top. One of the lines should be placed so that it passes through the common bottoms and the other so that it passes through the common tops; both will serve as support and resistance respectively.

See the image to better understand how the lines should be drawn.

The pattern is confirmed upon breaking support or resistance.

These are just a few of the many graphic patterns that exist, but they will certainly help you in your operations from now on. If you are interested in learning more patterns like these and how to operate each situation accurately, follow me and I will soon address them.

To test what you've learned here, take a look at the 15-minute chart of $BTC and try to recognize some of the patterns taught.

Feel free to comment with your questions and ask for an explanation on any topic you want, I will be happy to help.

Great operations to all and let's play!

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