Wedges

The “falling three” is a bearish chart pattern that often ends in a correction to the downside. It forms when the chart makes a short bullish move in a bearish trend.

The following cheat sheet will help you to identify the most common technical patterns that appear in forex charts. Click each heading for more information.

A broadening wedge is a range where the price is holding between two trend lines that are moving apart. The pattern is also named a "megaphone" because of its shape.

When a falling wedge pattern appears in a forex chart it hints at bullish sentiment. Like the rising wedge, this pattern is quite common at all time scales.

Rising wedge patterns are extremely common in forex charts and they can be useful at any timeframe. This post explains trade setups for bearish breakouts.

The flag pattern is closely related to the pennant. It’s a continuation pattern that tends to indicate that a trend is pausing rather than reversing.

Pennants are usually a reliable indication that a trend is set for a new leg. In other words they serve as good continuation signals.