The 3 Best Chart Patterns for Swing Trading

by Steve Sollheiser

When swing trading and choosing which set-ups to trade, one can find many chart patterns that seem to be profitable but actually just waste your money and lead to losses. In this article we will describe 3 accurate chart patterns that you can safely trade for consistent profits.

Chart Pattern #1: Double Top
The Double Top is one of the strongest patterns, as it is highly reliable and has almost 75% win rate, a remarkable rate for a set-up. The Double Top consists of two attempts of price to break through a Resistance level, that fail and price then falls down, unable to break the level. It is a bearish pattern that predicts a downtrend, and we usually enter this pattern after the neckline is broken downwards or at the pullback (for extra-accuracy). We recommend novice traders to trade this set-up using only the pullback entry for high accuracy and even better win rate.

Chart Pattern #2: Asymmetric Triangle
The Asymmetric triangle is one of the most neat chart patterns, as it is very easy to identify and also has a remarkable win rate of 76%. It consists of an asymmetric triangle that has one trend line and one horizontal level that price eventually breaks through. As with the Double Top, we enter such trades after price pulls back to the broken horizontal level, with tight stop loss and only if risk:reward is at least 1.5:1.

Chart Pattern #3: Channel
The channel is one of my favorite chart patterns, as it is easy to find and is very accurate. It is also very straightforward and can not be mistaken for other patterns, like other set-ups. It consists of two parallel trend lines that price ranges between, and we usually will take trades with the trend when price hits one of the trend lines, with target at the opposite trend line. We will also trade breakout of the channel against the trend at the pullback.

In conclusion, when swing trading we recommend trading those 3 chart patterns for maximum profits with high win rate.

Comments for The 3 Best Chart Patterns for Swing Trading

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Mar 07, 2013
How were these win rates determined?
by: JDM


The patterns you mentioned are extraordinarily common in the technical analysis trading literature, though I've never seen such exact win rate percentages. I was wondering if you had a link to the statistical study or reference used to determine these rates for the benefit of all?

Thank you!


May 08, 2012
by: Shan

Hi! Thanks for sharing the 3 patterns for swing trading. How does one scan for these set ups?
Thank you.

Apr 15, 2012
Double Top on Hourly Charts
by: Craig

The double top is my favorite pattern to trade on the hourly chart when I am looking for an entry on the short side. Very reliable!

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