There are 2 main patterns called head-and-shoulders and double-top (M). There is also a variation of double-top called triple-top. All patterns have its inverse variants called "inversed head-and-shoulders" and "double-bottom" (W).
There is also a V pattern just like double-bottom except it has only one bottom. It occurs rarely, so we won't discuss it here.
Head-and-shoulders pattern means that price tried to make 3 attempts of growth but on the last one it failed and rate reversed. It is like a triple-top pattern except that first and third attempts were weaker than middle one.
When you see this pattern you should sell when price goes lower than the neckline.
Now let's look at the double-bottom example.
It's just like the previous one, except it doesn't have a head. When you see this pattern you should buy just above the neckline.
These patterns are really simple and you should easily identify them. However, I would recommend to look after them on a day chart because smaller time frames won't give you such reliable results.
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