Understanding Pattern Types

Not every pause in a stock's chart looks the same. WealthLab groups these pauses into a few recognizable shapes, so you can quickly tell what kind of setup you're looking at before you open the chart.

Cup & Handle

A stock that ran up, pulled back and rounded out into a bowl-like shape, then tightened into a small pause near the top — like a cup with a short handle. This is one of the more common, well-tested pause patterns, and tends to show a deeper, longer consolidation than a High Tight Flag.

High Tight Flag

A sharper, faster setup — the stock made a steep run and is now pausing in a tight range close to its highs, without giving back much of the move. These are typically shorter and shallower pauses than a Cup & Handle.

Coming Soon

Multi-Year Breakout and IPO Base are additional pattern types WealthLab is building out — they'll appear here as they go live.

How to Use This

Select a pattern card on the Chart Setups screen to see every stock currently showing that shape. You can only view one pattern type at a time, so switch cards to compare what each one is turning up.

Common Questions

Which pattern type should I look at first? There's no single right answer — it depends on the kind of move you're looking for. Cup & Handle setups tend to reflect a longer, more developed pause; High Tight Flag setups tend to reflect a sharper, more recent one. Many traders check both.

Can a stock show up under more than one pattern type? Yes — a stock's chart can match more than one pattern's shape at different points in time, so you may see the same stock appear under Cup & Handle on one day and High Tight Flag on another, depending on how its chart is currently shaping up.