What’s the Best Chart Pattern?

Exploring the Bull Flag and Exhaustion Bar for Better Trades

What is the best chart pattern?

Ha, what a question!

Firstly, this is a bit subjective. Why?

Well, if you are a scalper looking for a high-probability 2:1 play, fading a flush through a prior low for a quick scalp might be your thing.

For a swing trader, you might prefer something with more meat on the bone.

The ‘best’ pattern depends on your objective right?

(Saying that though, I do think some patterns have stood the test of time and ‘make sense’ on most timeframes.)

Let’s explore…

BULL FLAG

Ah, the good old bull flag!

Probably the most misread pattern out there.

  • “Flags don’t work”
  • “I keep trading bull flags and getting stopped”

That’s because context is king!

Especially with the bull flag.

It has to be in the right scenario, preferably with some sort of urgency to it, like a catalyst.

The China50 play was a perfect recent example – a bullish catalyst preceding the classic technical flag pattern.

And, as it happens – Thomas Bullowski (the man who tests patterns) agrees… https://thepatternsite.com/earnflag.html

“Overall performance rank for upward breakouts (1 is best): 1 out of 6”

EXHAUSTION BAR

This has to be a top candidate for ‘best’ chart pattern… (if you can call it that)

Again, context is super key here, but persistency of trend followed by a larger than average range bar on big volume.

When I see that in the right market, I’m all over it!

The risk-reward and probability of success are just so so good.

It’s a high EV trade as far as I’m concerned…on any timeframe.

I call one version of it Backdraft.

I’ll filter for liquid markets with larger-than-usual moves over a period of days and look for a final flush to buy into.

A 2 – 3 day hold… *chef’s kiss*

Whichever pattern you favour, the main thing is understanding why it works.

And keeping them super simple…

There’s very little complexity to the best patterns.

It’s just market context and a final trigger.

We aren’t just trading numbers on a screen here, it’s other players driven by greed and fear.

If you can tap into a pattern that maximises those emotions, then you have a high chance of success.