StreetSmart Edge features Classic Chart Patterns Recognition A quick reference guide for traders tools provided by Recognia. www.schwab.com/ssedge

Triple Bottoms Double Bottoms Triangles Diamonds Megaphones Bullish: The Triple Bottom starts with prices Bullish: This pattern marks the reversal of a Bullish: Two converging trendlines as prices Bullish or Bearish: These patterns usually Bullish: The rare Megaphone Bottom—a.k.a. moving downward, followed by three sharp prior downtrend. The price forms two distinct reach lower/stable highs and higher lows. form over several months and will Broadening Pattern—can be recognized by its lows, all at about the same price level. Volume lows at roughly the same price level. Volume Volume diminishes and price swings between remain high during formation. Prices create successively higher highs and lower lows, which diminishes at each successive low and finally reflects weakening of downward pressure, an increasingly narrow range. Before the higher highs and lower lows in a broadening form after a downward move. The bullish pattern bursts as the price rises above the highest high, tending to diminish as it forms, with some reaches its apex, the price breaks out above pattern, then the trading range narrows after is confirmed when, usually on the third upswing, confirming as a sign of bullish price reversal. pickup at each low and less on the second low. the upper trendline with a noticeable increase peaking highs and uptrending lows trend. The prices break above the prior high but fail to fall Bearish Counterpart: Triple Top. Finally the price breaks out above the highest in volume, confirming the bullish continuation breakout direction signals the resolution to below this level again. Bearish counterpart: high to confirm the bullish signal. of uptrend. Triangles can also appear during a a new trend—upward (Diamond Bottom) or Megaphone Top. Bearish counterpart: Double Top. downtrend, signaling a bearish continuation. downward (Diamond Top) out of the diamond’s boundary lines.

Upside Breakouts Flags & Pennants Head & Shoulders Rounded Bottoms Wedges Bullish: An Upside Breakout occurs when Bullish or Bearish: Flag follows a steep rise in Bullish: This pattern is created by three Bullish: This pattern follows a downtrend, Bullish or Bearish: A Continuation Wedge the price breaks out through the top of a price (“flagpole”). It’s marked by two parallel successive price declines following a significant forming a gradual bowl shape reflecting a consists of two converging trend lines. Like a trading range marked by horizontal trendlines around a period of consolidation downtrend. The lowest low (head), is flanked shift in the balance of supply and demand. Triangle, but its apex slants downwards at an boundary lines across the highs and lows. as volume subsides. Flag can be horizontal by two higher lows at roughly the same level Volume tends to mirror the price pattern. After angle. As it forms over time, volume diminishes This bullish pattern indicates that prices may or slightly downward. Price breaks the upper (shoulders). Volume highest for first two relative inactivity at the bottom of the bowl, the and trend appears downward, but long-term rise explosively over a period of days or weeks trendline marking a resuming bullish uptrend. declines, then diminishes through right shoulder. price pattern starts upward turn. As sentiment range is still upward. Bullish pattern is as a sharp uptrend appears. Pennants converge rather than parallel. Volume surges as price closes above the turns, volume tends to increase. Bullish pattern confirmed when prices break above the upper Bearish counterpart: Downside Breakout. Bearish flags occur during a steep drop in price neckline to confirm the bullish reversal. is confirmed when price crosses above its trendline. A bearish wedge appears with with the flag horizontal or slightly upward. Bearish counterpart: Head and Shoulders Top. . converging trendlines pointing slightly upward.

StreetSmart Edge features Chart Pattern Recognition tools provided by Recognia. © 2017 Recognia, Inc. StreetSmart Edge™ is available to qualified Schwab Active Trading clients only. Schwab does not recommend as a sole means of investment research. Recognia is not affiliated with Schwab. Schwab makes no judgment or warranty with respect to accuracy, timeliness, completeness, or suitability of information. It is presented for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. Past performance is no guarantee of future results. ©2017 Charles Schwab & Co., Inc. All rights reserved. Member SIPC. (0611-4138) (06/11) Recognia® in StreetSmart Edge

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