TRADING PATTERNS #1

Double Bottom Inverse Head and Shoulders Bearish Falling Wedge

Target Target

First
Firs
First

t Le

L
eg D
Leg

g Do
Target

own
Dow

wn
n

Entry Entry
Neckline Neckline
Stop Stop

Entry
Shoulder Shoulder
Stop
Head
· You enter the trade once it breaks the Neckline on the · You enter the trade once it breaks the Neckline on the · You enter the trade once it breaks out of the pattern on
next candle formation. Some wait for a breakout and next candle formation. Some wait for a breakout and the next candle formation. Some wait for a breakout and
retest. retest. retest.
· Your Target should be near the top of the first leg down. · Your Target should be near the top of the first leg down. · Your Target should be near the top of the first leg down.
· Your Stop should be between the Neckline and bottom of · Your Stop should be between the Neckline and bottom of · Your Stop should be just below the bottom of the pattern.
pattern. Preferably 1/3 the target distance. pattern. Preferably 1/3 the target distance. Preferably 1/3 the target distance.

Double Top Head and Shoulders Bullish Rising Wedge

Head
Stop
Shoulder Shoulder Entry

Stop Stop

Neckline Neckline
Entry Entry

Up
Target
Up

Up

Leg
Leg

Leg

First
First

t
Firs

Target Target

· You enter the trade once it breaks the Neckline on the · You enter the trade once it breaks out of the pattern on
You enter the trade once it breaks the Neckline on the next. next candle formation. Some wait for a breakout and the next candle formation. Some wait for a breakout and
candle formation. Some wait for a breakout and retest. retest. retest.
· Your Target should be near the bottom of the first leg up. · Your Target should be near the bottom of the first leg up. · Your Target should be over half way down the first let up.
· Your Stop should be between the Neckline and Top of · Your Stop should be between the Neckline and Top of · Your Stop should be just above the top of the pattern.
pattern. Preferably 1/3 the target distance. pattern. Preferably 1/3 the target distance. Preferably 1/3 the target distance.
 TRADING PATTERNS #2
Bullish Falling Wedge Bullish Rectangle Bullish Pennant
Target Target
Target

Entry
Entry
Entry
Stop

Stop Stop

eg Up
p

Up
Leg U

Leg

L
First
First
First

· You enter the trade once it breaks out of the pattern on

· You enter the trade once it breaks out of the pattern on · You enter the trade once it breaks out of the pattern on the next candle formation. Some wait for a breakout and
the next candle formation. Some wait for a breakout and the next candle formation. Some wait for a breakout and retest.
retest. retest. · Your Stop should be at or just below the second leg of the
· Your Stop should be just below the pattern. · Your Stop should be just below the pattern. pattern.
· Your Target should be 3x the stop distance and about the · Your Target should be 3x the stop distance and about the · Your Target should be 3x the stop distance and about the
length of the first leg up. length of the first leg up (drawing not to scale). length of the first leg up (drawing not to scale).

Bearish Rising Wedge Bearish Rectangle Bearish Pennant

First
First
First

Leg D
Leg
Leg D

Dow

own
own

Stop
n

Stop
Stop
Entry Entry

Entry

Target
Target
Target · You enter the trade once it breaks out of the pattern on
· You enter the trade once it breaks out of the pattern on · You enter the trade once it breaks out of the pattern on the next candle formation. Some wait for a breakout and
the next candle formation. Some wait for a breakout and the next candle formation. Some wait for a breakout and retest.
retest. retest. · Your Stop should be at or just above the second leg of the
· Your Stop should be just above the pattern. · Your Stop should be just above the pattern. pattern.
· Your Target should be 3x the stop distance and about the · Your Target should be 3x the stop distance and about the · Your Target should be 3x the stop distance and about the
length of the first leg down. length of the first leg down (drawing not to scale). length of the first leg up (drawing not to scale).
 TRADING PATTERNS #3
Triple Bottom Bullish Flag Ascending Triangle
Target
Target Target
First

H
Leg

Entry
Dow

Stop
n

Entry H
Entry

g Up
Neckline

t Le

eg Up
Stop Stop

Firs

L
First
· You enter the trade once it breaks the Neckline on the · You enter the trade once it breaks the Flag pattern on the · You enter the trade once it breaks the Ascending Triangle
next candle formation. Some wait for a breakout and next candle formation. Some wait for a breakout and pattern on the next candle formation. Some wait for a
retest. retest. breakout and retest.
· Your Target should be near the top of the first leg down. · Your Target should be the distance of the first leg up. · Your Target should be the height of the pattern.
· Your Stop should be between the Neckline and bottom of · Your Stop should be just below the last candle of the · Your Stop should be just below the last candle of the
pattern. Preferably 1/3 the target distance. pattern. Preferably 1/3 the target distance. pattern. Preferably 1/3 the target distance.

Triple Top Bearish Flag Decending Triangle

Firs

First
t Le

Leg D
Stop
g Do
wn

own
Stop
Entry
Neckline
Entry H
Stop
Entry
Up
Leg

H
First

Target
Target
Target

· You enter the trade once it breaks the Flag pattern on the · You enter the trade once it breaks the Ascending Triangle
You enter the trade once it breaks the Neckline on the next. next candle formation. Some wait for a breakout and pattern on the next candle formation. Some wait for a
candle formation. Some wait for a breakout and retest. retest. breakout and retest.
· Your Target should be near the bottom of the first leg up. · Your Target should be the distance of the first leg up. · Your Target should be the height of the pattern.
· Your Stop should be between the Neckline and Top of · Your Stop should be just above the last candle of the · Your Stop should be just above the last candle of the
pattern. Preferably 1/3 the target distance. pattern. Preferably 1/3 the target distance. pattern. Preferably 1/3 the target distance.