Many novice traders share a common problem—when they can't understand the trend, they make random moves, ending up losing money without knowing why. In fact, if you can learn to recognize several common candlestick patterns, identifying turning points in price becomes much easier.

Today, I will break down 8 classic patterns for you, divided into two categories: one is reversal patterns called "desperate rebound," and the other is continuation patterns called "riding the momentum."

**The four reversal patterns are specifically for "turning the tide"**

Double bottom looks like a W. The price hits a key level twice without breaking below, indicating strong buying interest. When the price breaks above the neckline connecting the two bottoms, that’s your entry signal.

Triple bottom involves an extra test. The same support level is tested three times and holds, showing strong buying conviction. After breaking the neckline, the upward move tends to be more vigorous.

Inverted head and shoulders look like an upside-down human head. The middle is the lowest point (head), with two slightly higher lows (shoulders) on each side. The key is the neckline—once the price breaks through it, the subsequent rise is usually significant.

Falling wedge is actually a trap. It looks like the price is falling, but if you observe the range of fluctuations, the highs and lows are gradually converging. When the two trendlines meet, the probability of a breakout upward increases.

**The four continuation patterns keep the rally "going strong"**

Ascending triangle is straightforward. The top is a horizontal resistance line, while the lows are progressively higher. This indicates that although selling pressure exists, each dip attracts buyers. Eventually, the price will break above the resistance and continue to benefit from the upward trend.

Rising wedge shows narrowing gains. During an uptrend, highs and lows are moving upward, but the distance between them is decreasing, forming a triangle shape. When the price breaks out of this convergence zone, the uptrend usually continues.

Bullish flag pattern features a sharp rise ("flagpole") followed by a period of sideways consolidation ("flag"). After the consolidation, the price often resumes its previous upward movement.

Symmetrical bullish triangle reflects a tug-of-war between bulls and bears. The highs are gradually decreasing, and the lows are gradually increasing, with the forces getting closer. When one side finally breaks out, the subsequent move tends to be swift and decisive.

**Practical tips**

Mastering these 8 patterns is not just about finding entry points. You can also determine stop-loss levels and target prices from the patterns. The lower boundary of the pattern acts as a natural stop-loss line, and the previous trend can help estimate the potential upside.

Finally, I want to emphasize: this is not about memorizing knowledge blindly. The real benefit is being able to quickly identify what the price is doing and what signals the market is sending when you’re analyzing charts. This way, you’ll operate with confidence, no longer gambling based on feelings.