Classic Patterns
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With well over a dozen P&F patterns, there is often an active or developing pattern on a P&F chart. Identifying these patterns and the confirming breakout form an essential part of the P&F analysis process.
. Double Top Breakout, Triple Top Breakout, Spread Triple Top Breakout and Quadruple Top Breakout are covered in this group.
. Double Bottom Breakdown, Triple Bottom Breakdown, Spread Triple Bottom Breakdown and Quadruple Bottom Breakdown are covered in this group.
. These patterns resemble a rising flag or falling flag on a classic bar chart.
. Many P&F aficionados consider catapult signals to be the strongest. Catapults mark a classic breakout, a mild correction, and a continuation breakout.
. These patterns resemble triangles in bar charts, but a basic P&F signal is required for confirmation.
. These patterns are precisely what they sound like. A bear trap suckers the sellers before rallying, while a bull trap suckers the buyers before declining.