Definition: A small symmetrical triangle forming after a sharp price move, similar to a flag but with converging trendlines. Example: ETH formed a pennant on the 1H chart after a rapid 15% move, then continued upward.

Definition: The sharp, high-volume price move that precedes a flag or pennant pattern. Example: The flagpole measured $5,000 on BTC, giving a projected continuation target of the same distance.

Definition: A bearish reversal pattern where price tests the same resistance level twice and fails, signaling a trend change. Example: BTC’s double top at $69,000 in 2021 preceded a prolonged bear market.

Definition: A bullish reversal pattern where price tests the same support level twice and holds, signaling a trend change. Example: ETH’s double bottom at $880 in 2022 marked the beginning of a recovery.

Definition: A bearish pattern with converging upward-sloping trendlines, indicating weakening bullish momentum. Example: A rising wedge on SOL’s daily chart resolved with a sharp breakdown.

Definition: A bullish pattern with converging downward-sloping trendlines, indicating weakening bearish momentum. Example: BTC’s falling wedge during a correction resolved with a breakout to new highs.

Definition: A false breakout where price briefly moves beyond a key level but quickly reverses, trapping traders who entered on the break. Example: BTC broke above resistance with low volume — a fakeout — before reversing sharply lower.

Definition: A price target calculated by projecting the height of a pattern from its breakout point. Example: A head-and-shoulders with a 10% height from head to neckline projects a 10% decline from the breakout.

Definition: A mathematical calculation applied to price or volume data to help identify patterns or trends. Example: RSI is an indicator that shows whether an asset might be overbought or oversold.

Definition: An indicator that moves within a fixed range, often used to spot overbought or oversold conditions. Example: RSI oscillates between 0 and 100, with readings above 70 signaling potential overbought zones.

Definition: A tool designed to identify the direction and strength of a market trend. Example: Moving averages smooth out price action to show whether the trend is up or down.

Definition: An oscillator that measures momentum by comparing recent gains to recent losses. Example: An RSI of 75 suggests the asset has risen sharply and may be due for a pullback.