Visual assessment of the current market situation using technical analysis figures often provides more accurate information than indicators that work on mathematical algorithms and binary options bot.

We remind you that Japanese candles appeared two hundred years earlier than computers, and continue to bring stable profits.

All visual patterns are divided into two groups: reversal patterns, confirming the change of the current trend and trend continuation figures when after a small correction or consolidation, the price movement goes in the same direction. Note the rare construction, for example, Diamond or complex for beginners (ZUP, “butterfly” Pesavento and Gartley). But, it is possible to trade profitably, using simpler patterns which are easy to find on the chart.

Head and Shoulders

The pattern found on any asset and timeframe consists of three consecutive local maximums/minimums. The middle and highest are called “Head “and the smaller side “Shoulders”. At the minimum will be the level of support or “neck.”

Head and Shoulders

The process of creating this technical figure is as follows:

  • A new uptrend.
  • The first local maximum will be the left shoulder. Then we are waiting for a decrease in prices with a simultaneous drop in volumes, which confirms a change in the balance of forces in favour of sellers. The end of the correction gives the first point for the “neck” line.
  • The trend resumes, we get a new maximum or “head” – according to the rules of technical analysis, and it must be higher than the first.
  • The right shoulder is formed similarly to the left, in the classic version it should be symmetrical, but in the real market, such situations occur extremely rarely. If the right one is larger (in amplitude, not information time) it strengthens the signal for the end of the uptrend. We are waiting for the appearance of the last point or binary option trading signals on the “neck” line.
  • Take Profit is located at the maximum of the right shoulder. This is the highest calculated value, but always looks at the current situation – it may be worth using a trailing stop or closing earlier!

There is also a reverse version of the figure – inverted “Head-shoulders” indicating the beginning of an uptrend.

Analysis features:

  • These patterns are formed for a long time, positive results were observed on the timeframes M15-M30;
  • The main confirming factor at any stage will be a change in market volumes. They should grow on the segment “Left shoulder – Head” and fall “Head – Right shoulder”. Also, volumes begin to grow at the moments of the intersection of the neck;
  • The most common mistake when practising any technical analysis figures is to open a transaction without verifying the breakdown or rebound on the support line. Also, do not search at all costs for the “Head-Shoulders” where there are virtually none.

Triple Top/Bottom

Refers to the group of reversal, the structure is a variant of the previous technical figures.

Triple Top/Bottom

Stages formation of the figure “Triple Top/Bottom”:

  1. Resistance level after breakdown turns into support (neck) of the entire future figure.  The price impulse up ends with a local maximum A, which forces buyers over and binary options strategy show a signal of the first rollback;
  1. One of the rules of technical analysis – correction is not a new trend. In our case, buyers open new positions and restore the trend, to the next maximum C. Here there is an intermediate profit fixation, knocking down Stop Loss of small and medium players with a correction to the support level;
  1. After the majority of small and medium-sized players have left the market, market makers can safely move the market to Take Profit in the zone of the third maximum E. Then the market, despite the analysis data confirming the upward movement, can sharply collapse or go into a sideways movement.

The mirror “Triple bottom” signals the beginning of an uptrend. Breaking the neckline in both cases leads to a rapid change in volumes: growth to the first peak (bottom), decrease at the second and third maximum/minimum. Then again increase after the breakdown of support.

The signals of the triple patterns of technical analysis are always more reliable than the previous “Double Head-Shoulders”. Let them take longer to form, have more deviations from the standard view, but their confirmation by indicators is more reliable, especially on higher timeframes. Often accompanied by divergence, in which you can safely open positions with increased volume.

As always, it is better to enter the market after 2-3 neck level retests. Take Profit should be at least half the distance to the third maximum of the figure; otherwise; you can lose most of the profits from the new trend. Stop Loss or binary time expiration is calculated based on the average volatility of the asset over the last 5-7 days.


These technical analysis figures appear on the chart when the market is in the stage of uncertainty or a temporary balance of power between buyers (bulls) and sellers (bears), after which the trend is most likely to continue.


Ascending. The intersection point (top) of the figure is directed upward along with the trend, the maximum horizontal upper border at closing prices works as a resistance level, the inclined lower (support) also goes up. The range of price impulses tends to decrease; the breakdown of the upper limit confirms the continuation of the upward trend. According to the rules of market analysis, behind it are pending BUY orders and binary option trader transactions.

Descending. The situation is the opposite of the previous one: the top is at the bottom: the lower boundary is the resistance level, the top is the support. Are held at the closing prices of at least three local lows, the amplitude of fluctuations is reduced. To continue the downtrend, a resistance breakout is required, where the pending SELL orders are located.


Symmetrical. These triangles belong to the group of neutral patterns the boundaries narrow at roughly the same angles.  Confirm the temporary balance of power between buyers and sellers, there is often enough – the same probability of a breakdown, both on the rise and fall. Statistics show a slight advantage in the direction of the first pulse, you can set two multidirectional pending orders. We constantly monitor the situation to remove or move the order in time. Otherwise, you can get into the “castle”, from which it will be difficult for beginners to get out without loss.

Expanding. The lines of the figure diverge, no matter the angle between them. The market is overbought or oversold, market makers almost do not trade and the price is moved only by speculators. Even small changes in volumes cause strong fluctuations that are almost impossible to predict. It is best to stay out of the market or if the width of the triangle allows you to trade short-term swing positions. Breaking the boundary requires a reliable confirmation from trend indicators and oscillators.


This “Triangle” appears when the market is mainly medium and small speculators, the price with the same probability can go both up and down even with a small change in market volumes. “Wedge” can be difficult for beginners, since visually the “Wedge” looks like a regular tapering trend channel. Indicates a continuation during pullbacks and corrections, if directed towards the trend, it will be a reversal signal.


Fully “Wedge” is formed only on strong medium- and long-term trends. Then it is almost always worked out correctly on most trading assets. It is not recommended to trade on timeframes below H1, a lot of false signals. Since the model points to a complex market, other patterns may result, such as more stable versions of triangles.

Analysis features:

  • Most often, the breakdown occurs in the area from the middle to 70% of the length of the horizontal level;
  • Triangular patterns should only contain an odd number (at least 5) of waves to be considered complete. We stay out of the market until this condition is fulfilled!
  • As the rate of price movement drops, volumes should decrease with a sharp increase near the breakout level. We control the dynamics, there may be outstripping signals!
  • Breakdown of an ascending or descending figure against the main movement will almost always be false;
  • Beginners are not recommended to trade inside triangles, especially for free binary signals.

“Flag” and “Pennant”

Two more figures after a period of uncertainty, in front of them usually there is a sharp increase or fall, confirmed by large volumes. There are also strategies that consider «Flag/Pennant» as ahead signal for fundamental events, if the breakdown goes against the current trend, often this news or statistics will be worse than forecasts.

“Flag” and “Pennant”

Formation Features:

  • minimum period during which the figures of 10-15 bars of the working timeframe are identified;
  • strong initial impulse, possibly with a price (gap);
  • there should be a visible “flagpole” – up at a large angle of the chart area between the first breakout of the support/resistance level and the beginning of the figure;
  • “Flag” is a sideways movement, which can be horizontal or inclined against the current trend: up for a downtrend and down for an uptrend. If the width of the range allows you to trade on the rebound from the
  • “Pennant” is visible on the chart as a triangle without slope;
  • Take Profit calculated by the flagpole. At half-length, it is recommended to close part of the position or transfer it to breakeven. Pending orders are placed behind the last peak.

Despite its simplicity, the Flag / Pennant is more reliable than triangles. They are formed during periods when most market makers are out of the market and you can safely find the moment a transaction is opened without reacting to minor speculation. Regardless of the strategy used and binary signals, we follow the rule – a sharp rise/fall in prices before sideways movement.

Rounded top/bottom

Medium- and long-term reversal patterns of graphical analysis. Binary option for newbies courses often offers to start with short-term trades or even scalping in the hope of quickly dispersing the Deposit. But higher timeframes can give a similar result in a quieter trade.

Rounded top/bottom

From market analysis, such a price movement confirms an increase in the number and volume of pending positions of big players against the trend and they will close in the next 2-3 months.


The figures are most clearly visible on the weekly and daily timeframes. Assets should be with low or medium volatility, without frequent speculative movements. The easiest way to measure the strength and occurrence of a trend change is to use Fibonacci levels. On large timeframes, they provide reliable reference points for future support/resistance, pullbacks and corrections. Then they can be used as a base for trades on smaller timeframes.

Complex figures of technical analysis

The previous figures are classified as “simple” so in term of technical analysis they:

  1. Appear when the market is in a state of uncertainty, it happens even during periods of strong trend;
  2. Determined only on the chart without the use of additional tools.

Newbies should only use simple patterns or binary options signals, with the addition of moving averages and oscillators such as RSI or MACD!

As the experience grows, you can move on to more complex patterns, such as “Butterfly Gartley” and “Diamond”.

Butterfly Gartley

The reversal figure is named after author Harold Gartley and is based on the Fibonacci sequence. In the black section, the black segments show how the market is moving, the red ratio of Fibonacci levels to the distance that the price has passed between the levels. There are special indicators for simplicity of construction and analysis, such as ZUP.

Butterfly Gartley

In the process of formation, all Gartley figures are very unstable, but when the model is completed, the accuracy of the signals reaches 85%. The first Take Profit is always worked out, especially on H1 and higher timeframes. In the process of analysis, look at possible “butterflies” at smaller intervals, this greatly improves the reliability of the opening point.

Diamond (Rhombus)

This pattern rarely appears in the Forex market, but you can get a good profit. Comprised of expanding and symmetrical triangles with common tops, it turns out a double meaning: on timeframes from D1 and above it indicates a trend reversal, on smaller ones its continuation.