Chart patterns: double tops, head and shoulders, flags and triangles

What it means: Price hits the same high twice and fails both times. Buyers couldn't break through.

How traders use it: Many traders wait for price to break below the neckline (the low between the two tops) before selling.

What it means: Three peaks: a middle one (the head) higher than the two sides (the shoulders). The uptrend is losing strength.

How traders use it: The signal is a close below the neckline. A stop above the right shoulder is common.

What it means: A sharp drop, then a small, slow drift upward. It's often a pause before the drop continues.

How traders use it: Traders watch for a break below the bottom of the flag.

What it means: Price hits the same low twice and bounces both times. Sellers couldn't push lower.

How traders use it: Many traders wait for a break above the neckline (the high between the two bottoms).

What it means: Three dips, with the middle one the deepest. The downtrend is losing strength.

How traders use it: The signal is a close above the neckline. A stop below the right shoulder is common.

What it means: A sharp rise, then a small, slow drift downward. Often a pause before the rise continues.

How traders use it: Traders watch for a break above the top of the flag.

What it means: A flat top with rising lows. Buyers keep stepping in higher each time.

How traders use it: Often breaks upward, but not always. Wait for the break.

What it means: A flat bottom with falling highs. Sellers keep pushing in lower each time.

How traders use it: Often breaks downward, but not always. Wait for the break.

What it means: Highs get lower and lows get higher, squeezing price into a point. The market is coiling up.

How traders use it: It can break either way. Traders wait to see which side breaks first.