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| The Ascending Triangle | |
 | The Ascending Triangle is often a BUY signal, it indicates that there are more buyers than sellers in the market. |
| The Descending Triangle | |
 | The Descending Triangle often means a SELL signal especially when the difference between the top and the bottom is more than 20%. When the pattern is left in a downward direction it is a clear SELL signal When the difference between the top and the bottom of the triangle is less than 20% and there is no downward exit of the pattern than the Descending Triangle is a consolidation of a previous rise, in that case when the pattern is continued in the upward direction it is a BUY signal. |
| The Symmetrical Triangle | |
 | The Symmetrical Triangle doesn't give a clear direction, but if there is a upward or downward outbreak it is often severe. The upward outbreak is often a BUY signal, the downward outbreak is a SELL signal. |
| The Wedge | |
 | After a Wedge pattern there is often a severe outbreak upwards or downwards, the upwards outbreak is a often BUY signal, The downwards outbreak is often a SELL signal. In this example there was a fake rise followed with a decline. Be sure to stay alert when a wedge is formed!. |
| The Mast Formation | |
 | A Mast Formation is a vertical line of x's. This formation is formed when a stock rises (often during a short period) strongly, without (much) correction. When after a Mast formation there is a decline of no more than 3 o's than this is a BUY signal for the adventurous buyer, but keep in mind that a stock that rises fast, can also decline fast! Often there are 3 Mast formations following each other, when there is a decline of more than 20% consider this as a SELL signal especially when there are already 3 Mast patterns. In the picture (CIT group 6-1-2001) is a decline of 20% followed by a upwards outbreak leading in Mast 2, after Mast 2 is a consolidation followed by Mast 3. We expect that this formation will decline from here. |
| The Climbing Flag | |
 | The Climbing Flag is normally a consolidation pattern after a Mast formation. Often a Climbing Flag is a sign of exhaustion, when there is a downwards outbreak from the Climbing Flag pattern it is a SELL signal, when there is a upwards outbreak, the pattern is continued and it's a BUY signal |
| The Descending Flag | |
 | The Descending Flag often follows a period of strong rise, it is a consolidation pattern, where people are taking there profits. The pattern will often be continued, so if there is an upwards outbreak of this pattern it is a BUY signal, but if there is a downward outbreak it is a SELL signal. |
| The Bow Formation | |
 | The Bow Formation is a turn around formation on the top. After a period of rise there is a decline where the decline is faster and faster.
When a Bow Formation is formed, it is almost always a SELL signal when the decline is more than 20% it is advisable to SELL. |
| The Saucer | |
 | The Saucer is a turn around formation at the bottom. After a period of decline, the pattern stabilised, and finally starts to rise again. When the Saucer pattern is left in an upward direction it is a BUY signal. A rise equal to the depth of the Saucer can be expected. When the Saucer pattern is left in a downward direction it is a SELL signal. In the picture (Ikon Office 6-1-2001) we see that the first Saucer is continued in an upward direction, and later forming Saucer 2, with a strong outbreak upwards. |
| The Rectangle | |
 | A Rectangle is a consolidation pattern, that is often formed after a strong rise. This pattern is formed when people are taking there profit. The top line of the rectangle is the resistance line, at this level are people prepared to sell the stock. The bottom line is the support line where people are prepared to buy the stock. An outbreak upwards is often a strong BUY signal, but an outbreak downwards is often a SELL signal. In the picture (Advanta 6-1-2001) we see 2 Rectangle paterns, the first gave a SELL signal, the second a BUY signal. |
| The Uptrending Channel | |
 | The Uptrending Channel is formed when a decline after a rise is always smaller than the rise. It is possible to draw two (imaginary) lines one connecting the tops, the resistance line, and one connecting the bottoms, the support line. When the resistance line is penetrated is often a strong BUY signal. If the support line is penetrated it is a SELL signal. The picture shows the strong pattern of Steward Enterprises per 6-1-2001. |
| The Downtrending Channel | |
 | The Downtrending Channel is formed when after a decline the price rises are lower than the declines. It is possible to draw two (imaginary) lines one connecting the tops, the resistance line, and one connecting the bottoms, the support line. The Downtrending Channel is a SELL signal, but if the support line is penetrated it is normally a sign of a strong decline and thus a strong SELL signal. When the resistance line is penetrated is often a BUY signal. |
| The Shoulder - Head - Shoulder Formation | |
 | The Shoulder - Head - Shoulder Formation is a turn around formation on the top. At this formation there are two lower tops on each site of the top, the so called Shoulders. We can connect the shoulders with a imaginary line, the neckline, when this neckline is penetrated in a downward direction it is a strong SELL signal. At the picture (3Com Corp per 6-1-2001) is the neckline downwards penetrated, there is not much hope for a rise in the near future. |
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