I've simplified classical chart patterns to the most basic/common 8 patterns. I think most new patterns are derived from those basic ones. Our brains' pattern recognition is not that advanced to focus on so many derivatives. In fact better success can be achieved by narrowing down the below to select few.
There are 3 Types of Triangles: The symmetrical
triangle, the ascending triangle and the descending triangle. Between those
three I favor ascending and descending triangles for couple of reasons.
One of them is, both ascending and descending triangles have horizontal
boundaries. Breakouts through the horizontal boundaries are the chart
pattern signal. The other reason is that, both ascending and descending
triangles have directional bias due to their upward and downward sloping
lower and upper boundaries. I find symmetrical triangles difficult to
trade as price usually finds resistance at the minor highs following the
breakout. Pause around minor resistance usually hampers the momentum
and can result in more frequent failures. A symmetrical triangle has
both boundaries converging towards an apex. It is a neutral chart
pattern and doesn’t have a directional bias.
There are 4 Types of Breakouts:
Type 1 Breakout = Breakout without any Re-Test/Pullback.
Type 2 Breakout = Breakout with a Re-Test/Pullback.
Type 3 Breakout = Breakout followed by hard Re-Test of Pattern Boundary.
Type 4 Breakout = Failed Breakout - Price fails to continue in the breakout's direction and instead reverses.
Type 2 Breakout = Breakout with a Re-Test/Pullback.
Type 3 Breakout = Breakout followed by hard Re-Test of Pattern Boundary.
Type 4 Breakout = Failed Breakout - Price fails to continue in the breakout's direction and instead reverses.
Breakout Type 1, Type 2, and Type 3 Summary.
Head & Shoulder Top Failure acting as Bullish Continuation.
Cup & Handle as a Continuation Pattern in an Uptrend.
Rectangle as a Continuation Pattern in an Uptrend.
Symmetrical Triangle as a Continuation Pattern in an Uptrend.
Several Bullish Chart Patterns in an Uptrend.
Rectangle Bullish Reversal.
From Peter Brandt's foreword to the 2021 Harriman House re-edition of
Richard Schabacker's 'Technical Analysis and Stock Market Profits'.