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Pattern Types

Often, one of the following patterns as influencing the price action of a stock or market covered in AvidTrader research. Click on any pattern of interest for more information about its characteristics, its stages and real examples:

Channel

Double Bottom, Double Top

Head & Shoulders

Island

Rounding Bottom, Rounding Top

Symmetrical Triangle

Ascending Triangle

Descending Triangle

Complex Triangle

Trendline Touch

Wedge

Pattern Stages

Breaking

Consolidating

Correcting

False Break

Trending

Fallen Star


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False Break

When is a breakout not a breakout? When it is a false break. The retest of a prior extreme, or a trendline test, probably won't extend very far if volume accompanying the break is weak or weaker than normal. With the exception of ascending and descending triangles, a false break is usually in the opposite direction of the actual breakout yet to come.



Following are examples of false breaks from various patterns. Each is linked to more examples of the pattern.

Channel
False Break - Pattern Type: Channel
Rounding Bottom / Rounding Top
False Break - Pattern Type: Rounding
Double Bottom / Double Top
False Break - Pattern Type: Double Bottom Top
Symmetrical Triangle
False Break - Pattern Type: Symmetrical Triangle
Head & Shoulders
False Break - Pattern Type: Head Shoulders
Ascending Triangle
False Break - Pattern Type: Ascending Triangle
Island
False Break - Pattern Type: Island
Descending Triangle
False Break - Pattern Type: Descending Traingle
Rising Wedge / Falling Wedge
False Break - Pattern Type: Rising Wedge Falling
Complex Triangle
False Break - Pattern Type: Complex Triangle