THE HAnDbook oF TECHnICAl AnAlysIsWhen attempting to determine the reliability of potential reversals during the
accumulation and distribution phases, or continuations during the trend phase,
it is important to look for agreement between the intrinsic and extrinsic biases.
Any disagreement is seen as an indication that a reversal or continuation may be
inherently weak. Here is a summary of some common chart patterns and their as-
sociated intrinsic and extrinsic biases.
Intrinsically Bullish Patterns:
■ (^) Bullish Pennants
■ (^) Bullish Flags
■ (^) Ascending Triangles
■ (^) Inverted Head and Shoulders
■ (^) Rounding Bottoms
■ (^) Cup and Handles
■ (^) Falling Wedges
■ (^) Double, Triple, and Multiple Bottoms
Intrinsically Bearish Patterns:
■ (^) Bearish Pennants
■ (^) Bearish Flags
■ (^) Descending Triangles
■ (^) Standard Head and Shoulders
■ (^) Rounding Tops
■ (^) Rising Wedges
■ (^) Double, Triple, and Multiple Tops
Intrinsically Neutral Patterns:
■ (^) Symmetrical Triangles
■ (^) Horizontal Channels
Intrinsically Bullish Patterns with Respect to Trend Sentiment:
■ (^) Bullish Pennants occurring in an uptrend
■ (^) Bullish Flags occurring in an uptrend
■ (^) Ascending Triangles occurring in an uptrend
■ (^) Inverted Head and Shoulders occurring in an uptrend
■ (^) Rounding Bottoms occurring in an uptrend
■ (^) Cup and Handles occurring in an uptrend
■ (^) Falling Wedges occurring in an uptrend
■ (^) Symmetrical Triangles occurring in an uptrend
■ (^) Horizontal Channels occurring in an uptrend
■ (^) Broadening Formations occurring in an uptrend
Intrinsically Bearish Patterns with Respect to Trend Sentiment:
■ (^) Bearish Pennants occurring in a downtrend
■ (^) Bearish Flags occurring in a downtrend
■ (^) Descending Triangles occurring in a downtrend
■ (^) Standard Head and Shoulders occurring in a downtrend