Powerful Stock Technical Patterns That Exhibit Strength

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Deepvue

What Are Stock Technical Patterns?

Stock technical patterns provide traders with a reliable way to analyze price movements and identify potential breakouts or reversals. By recognizing these repeatable patterns, you can time your trades more effectively, confirm your setups, and manage risk better.

A pattern is simply a repetition of characteristics. Technical patterns are repeatable patterns that occur over time.

In every market, we can observe specific patterns that repeat over and over—the basic laws of supply and demand repeat on all stock charts.

Whether you’re a beginner or an experienced trader, understanding these patterns will give you an edge in the market. Let’s dive into the most important technical patterns and how to use them in your trading strategy.

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Why Technical Patterns Matter in Trading?

Technical analysis is the study of price movement over time. When looking at a stock chart, traders closely monitor how price behaves.

Stock prices don’t move randomly—they follow patterns based on supply and demand. These patterns appear across all timeframes and markets, making them valuable tools for traders.

You’ve most likely studied large basing patterns like the cup and handle and head and shoulders, while candlestick patterns provide clues on the price’s direction when we see engulfing days, hammers, or dojis.

By studying technical patterns, you can:

  • Identify high-probability entry points.
  • Confirm strong price action before committing to a trade.
  • Minimize risk by setting logical stop-losses.
  • Spot accumulation signs before a big breakout happens.

Even within a base, subtle price and volume clues indicate whether buyers or sellers have control. Let’s explore some of the most powerful patterns traders use daily.

Green Line Breakout: Why New Highs Signal Strength

A Green Line Breakout (GLB) is one of the traditional stock technical patterns, occurring when a stock makes a close at a hew high. A horizontal resistance line is drawn from a previous high and is broken when a stock closes above this area.

  • The daily and weekly closing price should be at a new all-time high.
  • The breakout into new highs should be supported with high volume.

The buy signal occurs when a stock closes at a new all-time high (over a green line drawn from the previous high). This traditional pattern is more prevalent in position trading and is best viewed on a weekly chart.

Symbol: ELF
Company:
e.l.f. Beauty
Year: 2022

Powerful Stock Technical Patterns That Exhibit Strength

In the spring of 2022, ELF bottomed and began forming a first-stage base that would see a 300% move in one year! An earnings beat gapped the stock up and closed near highs on a daily chart. If you bought the gap day at the close and placed a stop at the low of the day, your initial risk would be about four percent.

Symbol: MU
Company:
Micron Technology
Year: 2024

stock technical patterns

During the Dotcom boom in 1999-2000, MU made a high that wasn’t retested until March of 2021 and January 2022. In March 2024, MU broke out to all-time highs and advanced 30% in four weeks.

Symbol: NVDA
Company:
Nvidia
Year: 2016

Powerful Stock Technical Patterns That Exhibit Strength

After the housing crisis brought most of the market down in 2008, NVDA needed nine years to reach its all-time high. Once NVDA broke out to new highs in 2016, it moved an historic 600% in two and a half years, and we are now witnessing one of the greatest stocks in our generation.

Pocket Pivot: Early Signs of Accumulation

One of the strongest stock technical patterns is the pocket pivot, signaling early institutional buying before a major breakout. It appears as a strong up day with high volume, indicating growing demand for the stock.

  • The price action should include a substantial price gain with a high daily closing range.
  • The key distinguishing factor of the pocket pivot is the strong volume.
  • The volume of that day should be higher than the volume on the previous 10 down days.

The buy signal is a strong close, with increased volume confirming the strength. You can wait until near the end of the day or anticipate the close in a strong market as volume pours in.

Deepvue’s Enhanced Volume Indicator is placed at the bottom of the chart and represented with a green volume bar to visualize Pocket Pivots. Note that the pocket pivots at the bottom of the base imply support and additional follow-up pocket pivots signify accumulation.

Symbol: COIN
Company:
Coinbase
Year: 2023

In the fall of 2023, Coin made a 90% move in six weeks from the first pocket pivot up the right side. If purchased correctly, you could have seen a 50% move in three weeks! The initial risk with a stop at the low of the day would be less than five percent.

Symbol: CAVA
Company:
CAVA Group
Year: 2023-2024

stock technical patterns

During its Institutional Due Diligence Phase, CAVA printed many Pocket Pivots while forming a bottom and building the right side of its first base. Seeing a Pocket Pivot off the bottom should make you keep a close eye on a stock to see how it acts as it builds out. Get aggressive when you see more Pocket Pivots as a stock breaks out of a standard pivot.

Symbol: CELH
Company:
Celsius Holdings
Year: 2023

Powerful Stock Technical Patterns That Exhibit Strength

Buying the May 2023 gap on CELH might have rewarded you with a 60% move, but acting on the Pocket Pivots off the lows in April could have helped you manage risk tighter and would have gifted you with a 135% move in five months. Followup Pocket Pivots after a breakout will help you keep your conviction that there is still a large demand for the stock.

Oops Reversal: Catching Market Turnin Points

One of the standout reversal stock technical patterns is the Oops Reversal – a bottoming signal when the price is supported at a new low. Oops Reversals help traders identify major bottoms and find high-probability entry points.

  • Price gaps down below the low of the previous day and creates a new low.
  • Buyers step in and push the price up into the range of the previous day.
  • Price closes above the close of the previous day.

The buy signal is the close above the previous close. After a gap down, you can set an alert for when the price comes back into the previous candle’s low in anticipation of a strong close.

Symbol: CRWD
Company:
CrowdStrike Holdings
Year: 2023

Powerful Stock Technical Patterns That Exhibit Strength

In the summer of 2023, CRWD printed two oops reversals at the bottom of its base. Looking at August 18, you will also find that the market indices made new lows and closed poorly, making CRWD stand out relative to the market as it made higher lows.

In September, CRWD printed another subtle oops reversal at a new higher low while the market printed a lower low. Increased volume is helpful in confirming your thesis, but the price action is not invalidated on lower volume. If you purchased CRWD in the fall of 2023, when the market strengthened, you would be holding one of the strongest leading stocks!

Symbol: APP
Company:
Applovin
Year: 2022-2023

stock technical patterns

Near the end of the 2022 bear market APP made a new low with an Oops Reversal that resulted in a 90% move off the bottom. When APP formed its first base, again it saw an Oops Reversal at the low of the base. Buying the lows like this is risky but there is a clear bottom when observed to manage risk against. When you see an Oops Reversal off the lows look for follow-through strength and a new potential pivot to form.

Symbol: GPS
Company:
The Gap
Year: 2024

Powerful Stock Technical Patterns That Exhibit Strength

After gapping on earnings in November 2023, GPS formed a tight sideways base with clear support. An Oops Reversal marked the low, then another marked a higher low. Building a position may take some time, but accumulating shares here would get you in a clean 50% move.

Watch for Oops Reversals when you see bottoming action and tight ranges begin to form. These lows can be used to build a position against while providing a clear line in the sand to stop the position.

Using Deepvue’s Screener for Technical Indicators

When you create a new screen in Deepvue, you can type “Technical Pattern” into the search box to display all the scannable criteria.

Powerful Stock Technical Patterns That Exhibit Strength

When you select the criteria you are looking for, click “Yes.” It will be added to the selected group in your applied filters and displayed on your screen.

Powerful Stock Technical Patterns That Exhibit Strength

If you are unsure of what the pattern means, you can place your cursor over the Technical Patterns heading, and you will see a brief description of the pattern. Here is the description for the Bullish Reversal Bar.

Powerful Stock Technical Patterns That Exhibit Strength

Adding Technical Patterns to Your Stock Charts

Use the Technical Patterns Indicator to place a signal of your favorite pattern on your charts.

Powerful Stock Technical Patterns That Exhibit Strength

Select which indicator you want to see on your charts in the settings. You can also change its color, icon style, and location.

Powerful Stock Technical Patterns That Exhibit Strength

Let’s look at CELH forming a base with Oops Reversals labeled as green arrows under the candles.

Powerful Stock Technical Patterns That Exhibit Strength

Recognizing subtle price movements within a base can help you keep an eye on the strongest stocks.

Entering a stock on this action at the lows will get you in early on a new uptrend.

Deepvue’s Technical Patterns: The Technical Patterns you Should Track

Make the most of your trading style. If you know a particular setup works well, you should screen for that pattern daily.

You can screen for technical patterns to help you find patterns like:

  • Inside Days
  • Bullish Reversals
  • Tight Weekly Closes
  • Launch Pad Setup
  • Three Bar Break
  • Ants
  • In The Wick
  • Other Simple Candlestick Patterns

Key Takeaways

Technical patterns give traders an edge by identifying repeatable price action.

Green Line Breakouts signal strong uptrends, confirming bullish momentum at new highs.

Pocket Pivots highlight early accumulation, helping traders get in before breakouts.

Oops Reversals catch market turning points, providing low-risk, high-reward entries.

Deepvue’s screener helps traders find these stock technical patterns faster and place them on charts for easy reference.

By mastering these technical patterns, you can improve your trading confidence, accuracy, and profitability. Start applying them today and take your trading to the next level.

Frequently asked questions

Stock technical patterns are repeatable price movements that traders use to predict future price action. They help identify high-probability entry points, confirm trends, and manage risk. Since stock prices follow supply and demand principles, recognizing these patterns can give traders a strategic edge in timing trades and spotting breakout opportunities.

A Green Line Breakout (GLB) happens when a stock closes at a new all-time high, breaking above previous resistance. Traders look for high volume to confirm strength. This pattern signals bullish momentum and is especially useful for position traders tracking long-term uptrends.

A Pocket Pivot is a strong up day with high volume, suggesting institutional buying before a major breakout. Traders use it to spot early accumulation, allowing them to enter positions before the stock makes a significant move. A valid Pocket Pivot should have higher volume than the previous 10 down days.

An Oops Reversal signals a potential market bottom. It occurs when a stock gaps down, makes a new low, then rallies back above the previous day’s close. The buy signal comes when the stock closes higher than the prior day, indicating buyers are stepping in. This pattern helps traders catch reversals with defined risk levels.

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