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1. Double Bottom & Double Top
2. Ascending Triangle & Descending Triangle.
3. Bull Symmetrical Triangle & Bear Symmetrical Triangle.
4. Ascending Channel & Descending Channel.
Following these breakout patterns revolves around two concepts support and resistance levels.
Support Level
A support level is a price level where the price tends to find support as it is going down more then likely to bounce off that level rather than breaking through it and in return the resistance level is the opposite. Then if support levels break the stock will fall to the next support level.
Resistance Level
The resistance level is the opposite of a support level. The stock price tends to find resistance as it is going up
in return bouncing off resistance levels. For instance, if a stock breaks through the resistance it’s more than likely
to keep going up until it finds the next resistance level. If it does not break through the resistance it’s more than
likely to return to a previous support level.
Two Ways to Trade Support and Resistance Levels
1. Trade between the ranges meaning the support or resistance levels.
2. Follow these 8 chart patterns below and wait for a potential breakout.
The Double Bottom Pattern.
 Source: StockCharts.com The Double Top Pattern.
Source: StockCharts.com
The Ascending Triangle.
Source:StockCharts.com
The Descending Triangle.
Source: StockCharts.com
The Bull Symmetrical Triangle.
Source: StockCharts.com
The Bear Symmetrical Triangle.
Source: StockCharts.com
The Ascending Channel Pattern.
Source: StockCharts.com
The Descending Channel Pattern.
Source: StockCharts.com
Remember this when investing money in stocks. The best traders in the world rely on charts to determine the direction of a trade.
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