Chart Patterns & Your TA Workflow
Patterns that repeat — and how to combine everything
William O'Neil, in *How to Make Money in Stocks* (first edition 1988, with a CANSLIM methodology that explicitly hybridized fundamental and technical analysis), wrote that 'a strong, properly formed base on heavy volume — and a clean breakout from that base — is the visible record of accumulation by serious investors who have done their fundamental homework.' O'Neil's framing inverts the usual technical-analysis narrative. Patterns are not autonomous predictive shapes that work because of geometric magic; patterns are visible records of capital flowing into a name (continuation patterns) or out of it (reversal patterns), and the reliability of any pattern is a function of whether the volume signature confirms the capital-flow story the shape implies.
This lesson covers six classical patterns and the workflow for combining them with everything else the curriculum has taught. The honest framing: classical patterns carry probabilistic information, the information is modest in magnitude, and the patterns are most useful as timing overlays on top of fundamental conviction — never as standalone stock-picking criteria.
That is the opening. Finishing a lesson is where it stops being interesting and starts being useful: the full lesson runs to 4 sections and ends with 4 practice questions. A free account is what opens the rest, and the other 255 lessons in the Academy with it. No card.
What this lesson covers
- 1Pattern criteria, target projection, and the complete fundamentals-plus-technicals workflow
- 2The 2000 Nasdaq head-and-shoulders top and the 2009 S&P inverse head-and-shoulders bottom — bookends of a pattern era
- 3Where to see this on the platform
- 4Summary