Chart Patterns Cheat Sheet
Hello, traders!
Here is a cheat sheet which help you to identify the most frequent and reliable chart paterns. I should tell you that the patterns from the group "indefinite" are classified as bullish or bearish in classical literature, but in practice we should be careful using it in trading decisions.
BULLISH PATTERNS
Inverted Head & Shoulders, Double and Triple bottom are the most simple, frequent and reliable bullish pattern. Let's talk about bullish flag . It usually occur on the uptrend. The volume is high at the beginning of the flag and decrease to the end until the massive breakout to the upside with high volume.
The cup & handle is rare pattern and usually play out at the bigger timeframes.
INDEFINITE PATTERNS
The different types of triangles and wedges are very popular patterns and can be seen at the different timeframes. In classical books about TA rising wedge and descending triangle are bearish patterns, falling wedge and ascending triangle are bullish. But in practice it is very important to observe the side of it's breakout, as a result they can be bullish or bearish like the symmetric triangle. We should wait for the proper breakout confirmation to make a correct trading decision.
BEARISH PATTERNS
This patterns are the opposite to the bullish pattern, but work at the same way.
If you want to learn more about some pattern please give us to know it in comments.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
Here is a cheat sheet which help you to identify the most frequent and reliable chart paterns. I should tell you that the patterns from the group "indefinite" are classified as bullish or bearish in classical literature, but in practice we should be careful using it in trading decisions.
BULLISH PATTERNS
Inverted Head & Shoulders, Double and Triple bottom are the most simple, frequent and reliable bullish pattern. Let's talk about bullish flag . It usually occur on the uptrend. The volume is high at the beginning of the flag and decrease to the end until the massive breakout to the upside with high volume.
The cup & handle is rare pattern and usually play out at the bigger timeframes.
INDEFINITE PATTERNS
The different types of triangles and wedges are very popular patterns and can be seen at the different timeframes. In classical books about TA rising wedge and descending triangle are bearish patterns, falling wedge and ascending triangle are bullish. But in practice it is very important to observe the side of it's breakout, as a result they can be bullish or bearish like the symmetric triangle. We should wait for the proper breakout confirmation to make a correct trading decision.
BEARISH PATTERNS
This patterns are the opposite to the bullish pattern, but work at the same way.
If you want to learn more about some pattern please give us to know it in comments.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
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