By PatternLedger · Published

What the patterns look like

Made-up prices. Shape example only, not a detected signal.

Read left to right. The line charts join selected turning points; they leave out the full candle history and volume.

Double bottom

Double bottom — made-up chart example Two lows at 100 are separated by a rebound to 106. The later price of 108 is above the neckline at 106. Made-up prices. Shape example only, not a detected signal. Price 96 106 116 Earlier Time → Later
  • Example price
  • Support 100
  • Neckline 106
  1. The two low points make the W shape. The rebound between them sets the neckline.
  2. A move above 106 is the example break. The scanner still needs a valid, held confirmation.
Two lows
100
Neckline
106
Later price
108

Made-up prices. Shape example only, not a detected signal.

Double top

Double top — made-up chart example Two highs at 100 are separated by a pullback to 94. The later price of 92 is below the neckline at 94. Made-up prices. Shape example only, not a detected signal. Price 84 94 104 Earlier Time → Later
  • Example price
  • Resistance 100
  • Neckline 94
  1. The two high points make the M shape. The dip between them sets the neckline.
  2. A move below 94 is the example break. Two peaks alone do not confirm it.
Two highs
100
Neckline
94
Later price
92

Made-up prices. Shape example only, not a detected signal.

Triple bottom

Triple bottom — made-up chart example Three lows at 100 have two similar rebounds, to 106 and 105.5. The later price of 108 is above both rebound highs. Made-up prices. Shape example only, not a detected signal. Price 96 106 116 Earlier Time → Later
  • Example price
  • Support 100
  • Break level 106
  1. Three separate tests reach the same support. There is a clear rebound between each pair.
  2. The third touch is not an automatic score bonus. Spacing and reaction size still matter.
Three lows
100
Rebound highs
106 / 105.5
Later price
108

Made-up prices. Shape example only, not a detected signal.

Triple top

Triple top — made-up chart example Three highs at 100 have two similar pullbacks, to 94 and 94.5. The later price of 92 is below both pullback lows. Made-up prices. Shape example only, not a detected signal. Price 84 94 104 Earlier Time → Later
  • Example price
  • Resistance 100
  • Break level 94
  1. Three separate tests reach the same resistance. The two pullbacks are similar in size.
  2. A price above the top boundary breaks the normal sell setup. A shallow wiggle is not a full third test.
Three highs
100
Pullback lows
94 / 94.5
Later price
92

Made-up prices. Shape example only, not a detected signal.

Count tests, not small wiggles

Support is a lower price area that has held during earlier tests. Resistance is an upper price area that has stopped earlier rises. A double bottom has two tests of support with a clear rebound between them. A double top has two tests of resistance with a clear pullback between them.

A triple bottom or top adds a third separate test and a second clear reaction. The shape needs balanced spacing and meaningful moves between the tests. Three tiny turns packed together are not the same evidence.

Find the neckline and the break

For the double bottom shown here, both lows are 100 and the rebound high is 106. That high is the neckline, the level price must clear for the upward break shown. The later price is 108. In the double top, both highs are 100, the dip is 94, and the later price is 92.

In real charts, the turning points can form an area rather than one exact price. The site checks the whole support or resistance boundary. Confirmation needs a held break, using two closes or one decisive volume-backed close under the current rules. The simple lines here do not show those full checks.

A third touch does not guarantee a better result

The site does not give an automatic extra bonus just because a pattern has three touches. A qualifying triple can replace an overlapping double in the evidence. Balanced reactions and clean boundaries still matter.

A move below bottom support ends the normal buy setup. A move above top resistance ends the normal sell setup. The site can separately label a fresh, held failed-zone break. That is not the original setup succeeding.

Current PatternLedger rules

These rule summaries are shared with the Pattern Reference. Strict means that more checks pass. It is not a promise of profit.

Double bottom

Look for
Two lows share support, separated by a clear rebound.
Strict needs
Confirmed held break with strong, similar pivots.
What makes it invalid
A support breach ends the normal buy setup.

Double top

Look for
Two highs share resistance, separated by a clear pullback.
Strict needs
Confirmed held break with strong, similar pivots.
What makes it invalid
A resistance breach ends the normal sell setup.

Triple bottom

Look for
Three lows share support, with two balanced rebounds.
Strict needs
Balanced spacing, rebounds, and a clean support boundary.
What makes it invalid
Shallow rebounds, crossed support, or a stale or failed break.

Triple top

Look for
Three highs share resistance, with two balanced pullbacks.
Strict needs
Balanced spacing, pullbacks, and a clean resistance boundary.
What makes it invalid
Shallow pullbacks, crossed resistance, or a stale or failed break.

Check the real signal

  • Use the displayed signal date and the right Daily or Weekly chart.
  • Read the current direction, Strict or Loose label, and what makes the signal invalid.
  • Compare matching backtest evidence. A diagram, score, or past result does not guarantee a future return.

Keep reading

Compare all patterns

All 17 pattern types supported by PatternLedger, in eight groups. Use the 20 labelled pictures to compare their shapes, then open a guide for the rules and limits.