Are chart patterns reliable?

Chart patterns are probabilistic, not guaranteed. Studies suggest that well-formed patterns on higher timeframes have success rates of 60-70%. Always use proper risk management and never rely on patterns alone.

Which chart pattern is the most profitable?

Bull and bear flags are considered some of the most profitable patterns because they occur within strong trends and have clearly defined targets. Head and Shoulders patterns are also highly reliable when properly formed.

How do I calculate pattern price targets?

For most patterns, measure the height (from the pattern's highest to lowest point) and project that distance from the breakout point. For Head & Shoulders, measure from the head to the neckline.

What is a fakeout and how do I avoid it?

A fakeout occurs when price breaks a pattern but immediately reverses back. To avoid fakeouts: (1) Wait for a candle to close beyond the level, (2) Look for increased volume on the breakout, (3) Use higher timeframes where patterns are more reliable.

Can I combine chart patterns with indicators?

Absolutely. Many traders use RSI or MACD to confirm pattern breakouts. For example, an RSI above 50 can confirm a bullish pattern breakout.

Technical Analysis

Chart Patterns Guide: Head & Shoulders, Triangles & More

Identify and trade classic chart patterns. Learn head and shoulders, triangles, flags, and wedges.

Written ByDavid OkonjoChief Market Strategist

Fact Checked ByLisa MartinezCFD & Derivatives Analyst

Last UpdatedNov 28, 2026

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David Okonjo

Price Action • Market Strategy • Global Markets

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David is a seasoned market strategist who has led research teams at multiple international brokerage firms. Known for his insightful market commentary, he provides daily analysis and educational content on price action trading.

Chief Market Strategist — Everything you find on BrokerAnalysis is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback.

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