Chart patterns are one of the most widely recognized tools in technical analysis. They reflect the psychology of buyers and sellers and often provide clues about the next big move. Some of the highest-probability bullish setups include the Double Bottom, Triple Bottom, and Cup-and-Handle, each with historically strong success rates.
Double Bottom (88% Success Rate) – Bullish Reversal
The Double Bottom forms after a downtrend when price makes two lows at a similar level, separated by a rebound. The neckline across the interim high becomes the breakout trigger.
- Confirmation: Breakout above the neckline with above-average volume.
- Entry: Buy on breakout close or retest of neckline support.
- Stop: Below the second low.
- Target: Neckline-to-low distance projected upward.
Triple Bottom (87% Success Rate) – Bullish Reversal
The Triple Bottom is a stronger reversal pattern, formed when price rejects the same support three times. The repeated defense signals firm buying pressure and potential trend change.
- Confirmation: Breakout above the neckline with strong volume.
- Entry: Buy breakout close or neckline retest.
- Stop: Below the third low.
- Target: Height of the pattern projected upward.
Cup and Handle (95% Success Rate) – Bullish Continuation
The Cup-and-Handle develops during an uptrend. A rounded bottom forms the cup, followed by a brief, shallow pullback forming the handle. Breakouts from the handle often produce strong continuation moves.
- Confirmation: Breakout above the handle on strong volume.
- Entry: Buy the breakout close.
- Stop: Below the handle low.
- Target: Depth of the cup projected upward.
These patterns remain staples for traders seeking structured, rule-based opportunities. Combined with risk management, they can add conviction to trade decisions and improve consistency over time.
