Technical Analysis

Chart Patterns: 10 AI prompts for finance workflows

Use these Chart Patterns prompts to turn a loosely defined finance task into a clearer, copy-ready AI workflow.

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Copy-ready Chart Patterns finance prompts

Continuation or Reversal Pattern?

Beginner

Distinguishes continuation and reversal structures through prior trend, compression, confirmation, and invalidation rather than shape alone.

ID 172
Act as a chart-pattern specialist. Compare continuation and reversal patterns using prior trend, structure, duration, compression, breakout, confirmation, and invalidation. Use flags, pennants, rectangles, head and shoulders, and double tops or bottoms as examples. Explain common classification errors and cases in which the pattern remains indeterminate.

Head and Shoulders Pattern Rules

Beginner

Defines the regular and inverse head-and-shoulders pattern and explains why incomplete or forced visual symmetry is insufficient.

ID 173
Act as a technical analyst. Define regular and inverse head-and-shoulders patterns using prior trend, shoulder and head structure, neckline, duration, volume or liquidity, confirmation, entry, and invalidation. Explain alternative interpretations, failed patterns, and how to test the rules without selecting only textbook examples.

Triangles, Wedges, and Pennants

Beginner

Compares common compression structures, their possible continuation or reversal roles, breakout confirmation, invalidation, and failure modes.

ID 174
Act as a market-structure analyst. Compare triangles, wedges, and pennants by prior move, converging boundaries, duration, volume or liquidity, continuation or reversal context, breakout confirmation, and invalidation. Explain false-breakout risk and define when the shape is too ambiguous, mature, or illiquid to trade.

Flags and Channels as Continuation Patterns

Beginner

Explains how to evaluate pullbacks, flags, and channels inside a trend without confusing a pause with a reversal.

ID 175
Act as a trend-continuation analyst. Explain how to evaluate bull and bear flags and channels using the prior trend, pullback depth and duration, slope, volume or liquidity, entry, confirmation, and invalidation. Include late-entry and failed-breakout risks and explain how to test whether the rules add information beyond simple trend following.

Double Tops and Bottoms: Confirmation and Failure

Beginner

Explains why two nearby highs or lows may be ordinary range behavior and what evidence is needed before treating them as a reversal.

ID 176
Act as a reversal-pattern analyst. Define double tops and bottoms using prior trend, separation in time, price tolerance, intervening swing, confirmation, invalidation, and volume or liquidity. Explain failed reversals that continue the prior trend and why two visually similar highs or lows are not sufficient by themselves.

Chart-Pattern Validity Checklist

Medium

Filters forced visual interpretations through seven checks for context, structure, confirmation, risk, and available data.

ID 177
Create a strict seven-point checklist for deciding whether a chart pattern is well defined or merely noise. Include prior trend or regime, objective structure, duration, volume or liquidity, confirmation, invalidation, and feasible reward relative to risk and costs. Allow an indeterminate result when data or confirmation is missing rather than forcing yes or no.

Breakout or False Breakout?

Medium

Combines prior structure, close, follow-through, liquidity, retest, and invalidation to evaluate a breakout without relying on one indicator.

ID 178
Define rules for distinguishing a confirmed breakout from a false breakout using prior structure, closing behavior, follow-through, volume or liquidity, retest, spread, and invalidation. Include wait conditions and adverse scenarios, and explain how to test the rule historically without selecting only examples that fit the conclusion.

When a Failed Pattern Becomes a Trade Thesis

Medium

Explains how a confirmed pattern failure may reveal trapped positioning without calling the reversal a high-probability trade by definition.

ID 179
Act as a failed-pattern analyst. Define evidence that confirms a pattern has failed, which participants may be trapped, where entry and invalidation would be, how liquidity and costs affect the thesis, and how risk should be limited. Include cases in which failure offers no trade and do not label the setup high probability without supporting data.

Chart Patterns to Avoid

Pro

Identifies ambiguous, late, illiquid, or context-free patterns that should be rejected until structure, confirmation, and invalidation are clear.

ID 180
List chart patterns and pattern situations that should usually be avoided because of weak context, unsuitable timeframe, low liquidity, excessive maturity, late entry, unclear invalidation, or subjective geometry. For each, explain the failure mode and the minimum evidence that would need to appear before the idea could be reconsidered.

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How to use AI prompts to review chart patterns

A chart-pattern prompt should turn a visual label into objective conditions that can be challenged. Prior trend, timeframe, confirmation, and invalidation matter more than whether a shape roughly resembles a textbook example.

  • Define the prior trend, pivots, duration, price tolerance, volume or liquidity context, and the exact point of confirmation.
  • Request competing interpretations, failure conditions, and the level at which the proposed pattern is no longer valid.
  • Test historical base rates and trading rules with costs; do not treat pattern recognition alone as evidence of an edge.