Reversal patterns and continuation patterns

Chart patterns fall into two large families, and distinguishing between them is the key to using them correctly:

Reversal patterns

Reversal patterns appear at the end of a trend and warn that it is about to reverse. After a long rise a bearish reversal pattern may appear, and after a long fall a bullish reversal pattern may appear. Among them: the head and shoulders, and the double and triple top and bottom.