Analysis 10 cards 5 min

Penny Stock Chart Patterns That Actually Work

Learn 10 proven chart patterns for penny stocks: Cup and Handle, Head and Shoulders, Flags, Triangles, Wedges, Double Top/Bottom, Channels, Breakouts, Reversals, and Bottoming formations.

Interactive Tools & Resources

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Pattern Reliability Scorecard

Comparison

Compare the reliability and characteristics of each major chart pattern.

Pattern	Type	Reliability	Volume Needed	Avg Move	Best Timeframe
Cup & Handle	Bullish Breakout	High	3x+ avg	20-40%	Daily
Bull Flag	Continuation	High	2x+ avg	10-25%	Daily
Double Bottom	Reversal	Medium	2x+ avg	15-30%	Daily
Ascending Triangle	Breakout	High	2.5x+ avg	15-35%	Daily
Head & Shoulders	Bearish Reversal	Medium	1.5x+ avg	20-40% drop	Daily
Rounding Bottom	Reversal	Medium	Gradual increase	25-50%	Weekly
Pennant	Continuation	Medium	2x+ avg	10-20%	Daily

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Pattern Trade Checklist

Checklist

Complete these checks before trading any chart pattern. 0/8

Step 1: Identify the pattern on a daily chart Step 2: Confirm volume is at least 2x the 20-day average on breakout Step 3: Verify the stock is not in a pump-and-dump phase Step 4: Set stop-loss below pattern support (8-12%) Step 5: Calculate position size based on stop-loss distance Step 6: Set profit target at 1.5-3x your risk amount Step 7: Use a limit order for entry Step 8: Wait for the breakout candle to close before entering

Penny Stock Chart Patterns That Actually Work

Interactive Tools & Resources

Pattern Reliability Scorecard

Pattern Trade Checklist

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Penny Stock Technical Analysis

Volume Analysis Guide

Support & Resistance