Short Answer
VaultCharts automatically detects a comprehensive range of patterns including chart patterns (Head & Shoulders, triangles, pennants), market structure patterns (Break of Structure, swing structure), Elliott Wave patterns, Wyckoff phases (accumulation, distribution, markup, markdown), and candlestick patterns (engulfing, doji, hammer). All patterns are detected in real-time and recalculated dynamically.
Chart Patterns
Reversal Patterns
- Classic reversal pattern indicating trend exhaustion
- Three peaks with middle peak (head) higher than shoulders
- Neckline break confirms reversal
- VaultCharts detects both standard and inverse patterns
- Learn more about Head and Shoulders pattern
Inverse Head & Shoulders
- Bullish reversal pattern
- Three troughs with middle trough (head) lower than shoulders
- Indicates potential upward reversal
- Covered in Head and Shoulders guide
- Reversal patterns with two similar peaks or troughs
- Double top: Bearish reversal signal
- Double bottom: Bullish reversal signal
- Confirmation on neckline break
- Learn more about Double Top / Bottom pattern
Continuation Patterns
Ascending & Descending Triangles
- Consolidation patterns indicating continuation
- Ascending triangle: Bullish continuation
- Descending triangle: Bearish continuation
- Breakout direction confirms trend continuation
- Learn more about Triangle patterns
- Short-term continuation patterns
- Small symmetrical triangles after strong moves
- Bullish pennant: Continuation of uptrend
- Bearish pennant: Continuation of downtrend
- Learn more about Pennant patterns
- Price moving within defined channels
- Breakout above (bullish) or below (bearish) indicates continuation
- Useful for trend-following strategies
- Learn more about Channel Breakout patterns
Trendline Support & Resistance
- Automatic detection of significant trendlines
- Support: Price bounces off upward-sloping line
- Resistance: Price bounces off downward-sloping line
- Breakouts indicate trend changes
Market Structure Patterns
Break of Structure (BOS)
Bullish BOS
- Price breaks above previous swing high
- Confirms continuation of uptrend
- Key component of trade signals
Bearish BOS
- Price breaks below previous swing low
- Confirms continuation of downtrend
- Indicates selling pressure
Learn more about Break of Structure (BOS)
Swing Structure
- Automatic identification of swing highs and lows
- Trend structure analysis
- Support and resistance level detection
- Foundation for market structure analysis
Elliott Wave Patterns
Impulse Waves
Bullish Impulse Waves
- Five-wave upward movements (1-2-3-4-5)
- Follows Elliott Wave principles
- Indicates strong directional movement
Bearish Impulse Waves
- Five-wave downward movements
- Shows strong selling pressure
- Confirms downtrend structure
Learn more about Elliott Wave patterns
Elliott Wave detection helps identify:
- Wave structure alignment
- Potential reversal points
- Trend strength and momentum
- Entry and exit opportunities
Wyckoff Patterns
VaultCharts detects all four Wyckoff phases:
Accumulation
- Smart money building positions
- Price consolidation at lows
- Decreasing volume
- Preparation for markup phase
Markup
- Strong upward price movement
- Increasing volume
- Trend establishment
- Profit-taking opportunities
Distribution
- Smart money exiting positions
- Price consolidation at highs
- Decreasing volume
- Preparation for markdown
Markdown
- Strong downward price movement
- Selling pressure
- Trend continuation downward
- Exit opportunities
Learn more about Wyckoff patterns
Wyckoff phase detection helps identify:
- Institutional activity
- Market cycle position
- Entry and exit timing
- Trend strength
Candlestick Patterns
Reversal Patterns
- Bullish engulfing: Strong reversal signal
- Bearish engulfing: Strong reversal signal
- Indicates shift in market sentiment
- Learn more about Engulfing patterns
- Indecision pattern
- Open and close at similar levels
- Potential reversal signal
- Learn more about Doji patterns
Dragonfly Doji
- Bullish reversal signal
- Long lower wick, no upper wick
- Indicates buying pressure
- Covered in Doji pattern guide
- Hammer: Bullish reversal at lows
- Inverted hammer: Potential bullish reversal
- Indicates rejection of lower prices
- Learn more about Hammer patterns
How Pattern Detection Works
Real-Time Analysis
Patterns are detected in real-time as new candles form:
- Continuous monitoring of price action
- Dynamic pattern recognition
- Immediate alerts when patterns form
Confidence Scoring
Each detected pattern includes:
- Confidence level (0-100%)
- Pattern completion percentage
- Historical accuracy metrics
- Risk/reward assessment
Pattern Configuration
You can:
- Enable/disable specific patterns
- Set minimum confidence thresholds
- Adjust sensitivity settings
- Filter by timeframe
Use Cases
1. Trend Identification
Use chart patterns and market structure to identify:
- Trend direction
- Trend strength
- Potential reversals
- Continuation signals
2. Entry Timing
Pattern detection helps with:
- Optimal entry points
- Confirmation signals
- Risk assessment
- Position sizing
3. Risk Management
Patterns indicate:
- Stop loss placement
- Take profit levels
- Position management
- Exit strategies
4. Multi-Timeframe Analysis
Combine patterns across timeframes:
- Higher timeframe context
- Lower timeframe entries
- Confluence identification
- Strategy validation
Pattern Reliability
High Reliability Patterns
- Head & Shoulders (when confirmed)
- Break of Structure (BOS)
- Wyckoff phases (with volume confirmation)
- Strong candlestick patterns (with confluence)
Moderate Reliability Patterns
- Triangles (require breakout confirmation)
- Pennants (short-term patterns)
- Elliott Wave (subjective interpretation)
- Single candlestick patterns
Important Considerations
- No pattern is 100% reliable
- Always use with other analysis
- Consider market context
- Apply proper risk management
- Patterns work better with confluence
Best Practices
1. Combine Patterns
Use multiple patterns for confirmation:
- Chart pattern + market structure
- Wyckoff phase + Elliott Wave
- Candlestick pattern + volume
2. Consider Timeframe
- Higher timeframes = more reliable
- Lower timeframes = more signals but less reliable
- Use multiple timeframes for context
3. Wait for Confirmation
- Don't trade on pattern anticipation
- Wait for pattern completion
- Confirm with price action
- Verify with other indicators
4. Manage Risk
- Set stop losses
- Use proper position sizing
- Consider pattern failure scenarios
- Have exit strategies
Individual Pattern Guides
Chart Patterns
- What is Head and Shoulders pattern?
- What is Double Top / Bottom pattern?
- What are Triangle patterns?
- What are Pennant patterns?
- What are Channel Breakout patterns?