Technical AnalysisMembers
Chart Patterns: What the Evidence Says
intermediate·7 min read·Tier 2
Head-and-shoulders, double bottoms, triangles — what formal studies found, why results disagree, and how to trade patterns as rules.
Chart patterns — head-and-shoulders, double tops and bottoms, triangles, flags, cup-and-handle — are the oldest documented family of trading signals, with a practitioner literature stretching back to the 1930s. They are also the family academics were most skeptical of, partly because "a head-and-shoulders" is hard to define precisely enough to test.
The evidence is mixed — and that's the point
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