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Candlestick and Chart Patterns Guide | PDF | Market Trend | Economic Forecasting
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Candlestick and Chart Patterns Guide

The document describes various candlestick patterns such as the hammer candle, doji fly candle, and spinning top candle that can indicate reversals or changes in trend. It also outlines several chart patterns including symmetrical triangles, ascending triangles, head and shoulder patterns, double bottoms, bull flags, and falling wedges. These patterns provide clues about when a new trend may be starting or help confirm the strength of an existing trend.

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Jamal Raja
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517 views7 pages

Candlestick and Chart Patterns Guide

The document describes various candlestick patterns such as the hammer candle, doji fly candle, and spinning top candle that can indicate reversals or changes in trend. It also outlines several chart patterns including symmetrical triangles, ascending triangles, head and shoulder patterns, double bottoms, bull flags, and falling wedges. These patterns provide clues about when a new trend may be starting or help confirm the strength of an existing trend.

Uploaded by

Jamal Raja
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CANDLES PATTERN

1. HAMMER CANDLE

 Bullish Reversal
 Next candles will be Green
 Buying pressure is High

2. DOFI FLY CANDLE

Classical Gravestone Dragon fly


Doji Doji Doji

 Trend Reversal
 Confusion between buyers and sellers
 Contains No body

3. SPINNING TOP

 Same size of wicks upside and downside


 Forms at top than next candle takes trend reversal
4. Shooting Star

 Found in Uptrend
 Bearish Reversal
 Downtrend Expected

5. Bullish Engulfing Candle

 Found in Down Trend


 Beginning of Bullish Trend
 This pattern is valid when Bullish candle fully engulfs Bearish candle
 Bearish Engulfing Candle is opposite

6. Three White Solders


 1st Candle Bullish, 2nd Candle Bullish Bigger than 1st Candle… 3rd Candle Bullish with no or small
shadow
 Found after Downtrend
 Very Powerful Bullish Trend Reversal Pattern

7. Morning Star Candle

 1st Candle must be Bearish


 2nd Candle is bearish or bullish doesn’t matter
 Formed in Down Trend
 Bullish reversal candle, Beginning of new trend
CHART PATTERNS
1. SYMMETRICAL TRIANGLE

 Having sides merging together at point of burst


 Needs At least two lows of Resistance and two highs of Support
 Found in Uptrend or Downtrend
 Interpretation: Break Down / Break Out

2. ASCENDING TRIANGLE

 Need At least two resistance lines in Horizontal Sequence (Straight Line)


 Two Support Lines Parallel
 Formed in Uptrend
 Interpretation: Wait for the break out
 Descending triangle is same in opposite direction
3. HEAD & SHOULDER TRIANGLE

 Bearish reversal Pattern


 Found in Uptrends
 Interpretation: Neckline gets break the price will be free fall
 Always Use bigger time frames to achieve good results like 4HR, Day chart

4. DOUBLE BOTTOM CHART

 Resembles as letter “W”


 Two Supports of same length
 Formed at the end of Down trend
 Bullish reversal pattern
 Interpretation: On breaking the neckline, Bullish rally on upside
 Double top is reciprocal of same pattern
5. BULL FLAG CHAT PATTERN

 Continuation pattern
 Occurs in uptrend
 Indicates Continuation of Uptrend
 Take profit equals to size of Flag pole
 Bearish Flag is opposite

6. FALLING WEDGE CHART

 Falling wedge is Bullish trend


 It is widest at top and becomes narrower as it moves downtrend until the trend line gets break
out
 Wait for the breakout then take entry
 Rising Wedge is opposite in trend

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