Chart patterns can feel subjective, but some setups appear again and again — and deliver strong results when traded with discipline.
In a recent webinar, John Rowland, CMT, shared the five chart patterns he believes are both easy to recognize and consistently effective. He also walked through the key performance metrics traders should consider: success rate; failure rate; breakout performance; and the likelihood of a pullback (a.k.a., “throwback”).
Here’s a breakdown of his top 5:
1. Cup and Handle
- What it looks like: A rounded bottom (the “cup”) followed by a smaller consolidation dip (the “handle”).
- Why it works: Signals accumulation followed by a breakout above resistance.
- Watch for: Volume confirmation on the breakout of the handle.
2. Measured Move Up
- What it looks like: A strong rally (leg one), a consolidation, then a second leg higher.
- Why it works: Projects continuation of trend with measurable price targets.
- Watch for: Consolidation that holds support without heavy distribution.
3. Ascending Triangle
- What it looks like: A horizontal resistance line with rising lows.
- Why it works: Shows buyers are stepping in higher and higher, pressuring resistance until it breaks.
- Watch for: Breakout above resistance with expanding volume.
4. Double Bottom
- What it looks like: Two sharp lows around the same price level, forming a “W” shape.
- Why it works: Indicates strong support and potential reversal from a downtrend.
- Watch for: Breakout above the middle peak of the “W” to confirm.
5. Inverse Head and Shoulders
- What it looks like: A low (left shoulder), a deeper low (head), then a higher low (right shoulder).
- Why it works: A bullish reversal pattern often seen at market bottoms.
- Watch for: Breakout above the “neckline” with momentum.
How to Find These Patterns
You don’t need to scan hundreds of charts manually. Barchart makes it easy with:
- Candlestick Screeners → instantly spot common bullish and bearish setups
- Interactive Charts → add technical indicators and annotate patterns
- Get new recommendations for alerts daily → Breakout & Reversals page
The Bottom Line
Not every pattern is created equal. By focusing on patterns with strong recognition, high probability, and measurable targets, traders can increase their odds of success.
John’s top 5 — cup and handle; measured move up; ascending triangle; double bottom; and inverse head and shoulders — give traders a practical roadmap to spot high-probability setups.
Watch the clip from the webinar →
Stream the Full Webinar on Chart Patterns → Chart Patterns That Actually Work
Start screening for candlestick patterns on Barchart →
