# Chart Patterns Cheat Sheet: Reversal vs Continuation Patterns

> A one-page guide to the major chart patterns: which ones signal reversals, which continue the trend, what each looks like, and how to trade them with the same disciplined process.

Canonical: https://learnertrades.com/article/chart-patterns-cheat-sheet-reversal-vs-continuation
Published: 2026-09-07

Patterns are a language for describing what buyers and sellers are doing. The names matter less than the logic: who is losing control, who is gaining it, and where the market is proven wrong.

## The cheat sheet

| Pattern | Type | Bias | Trigger | Typical target |
| --- | --- | --- | --- | --- |
| Rising wedge | Reversal (or continuation in a downtrend) | Bearish | Close below the lower line | Start of the wedge |
| Falling wedge | Reversal (or continuation in an uptrend) | Bullish | Close above the upper line | Start of the wedge |
| Symmetrical triangle | Continuation (neutral) | Either | Closing break of either line | Height of the triangle |
| Ascending triangle | Continuation | Bullish | Close above flat resistance | Height of the triangle |
| Descending triangle | Continuation | Bearish | Close below flat support | Height of the triangle |
| Head and shoulders | Reversal | Bearish | Close below the neckline | Head-to-neckline distance |
| Inverse head and shoulders | Reversal | Bullish | Close above the neckline | Head-to-neckline distance |
| Double top | Reversal | Bearish | Close below the neckline | Pattern height |
| Double bottom | Reversal | Bullish | Close above the neckline | Pattern height |
| Bull / bear flag | Continuation | With the pole | Close beyond the flag | Pole length |
| Cup and handle | Continuation | Bullish | Close above the rim | Cup depth |
| Rectangle | Continuation (neutral) | Either | Closing break of either side | Range height |

## Reversal patterns

{{diagram:head-and-shoulders}}

Reversal patterns need a trend to reverse. Their trigger is almost always a **neckline** break. See the detailed guides on [head and shoulders](/article/head-and-shoulders-and-inverse-head-and-shoulders-guide) and [double tops and bottoms](/article/double-top-and-double-bottom-patterns-guide).

## Continuation patterns

{{diagram:bull-flag}}

Continuation patterns are pauses inside a trend. They are generally traded with the trend after a breakout. Read more on [flags](/article/bull-flag-and-bear-flag-patterns-guide), [triangles](/article/ascending-and-descending-triangles-trading-guide) and [cup and handle](/article/cup-and-handle-and-rectangle-patterns-guide).

## Wedges: bias against the slope

{{diagram:rising-wedge}}

Wedges slope one way and usually break the other, because the slope is weakening momentum. See [rising wedge](/article/rising-wedge-pattern-how-to-identify-and-trade-it) and [falling wedge](/article/falling-wedge-pattern-how-to-identify-and-trade-it).

## One process for every pattern

1. **Trend first.** What is the bigger picture on a higher timeframe?
2. **Identify the structure** with clear touches on each line.
3. **Wait for a closing break.** No close, no trade.
4. **Place the stop beyond the pattern** and size the position from it, see [risk management](/article/risk-management-position-sizing-the-only-edge-that-never-stops-working).
5. **Check risk-to-reward** is at least 1:2 to the first realistic target.
6. **Record the result** in your journal, win or lose.

## Key takeaways

- Reversal patterns end trends; continuation patterns pause them; wedges lean against their slope.
- Every pattern is traded the same way: closing break, stop beyond the structure, target by measured move.
- No pattern is guaranteed. Educational only, not financial advice.

## Related guides

- [Market structure explained](/article/market-structure-how-to-read-trends-like-a-professional)
- [How to read candlestick charts](/article/how-to-read-candlestick-charts-for-beginners)
- [How to write a trade plan](/article/the-complete-trade-plan-structure-from-idea-to-journal)
- [Risk management and position sizing](/article/risk-management-position-sizing-the-only-edge-that-never-stops-working)

**What is the difference between reversal and continuation patterns?**
Reversal patterns signal that the prevailing trend may be ending (for example head and shoulders). Continuation patterns signal a pause before the trend resumes (for example flags).

**Which chart pattern is the most reliable?**
No pattern is consistently reliable on its own. Reliability improves with a clear prior trend, a higher timeframe, a closing break, volume confirmation and sensible risk-reward.

**Do I need indicators to trade patterns?**
No. Price is enough. Indicators such as RSI divergence or volume can help confirm, but they are optional.