TRADE

WITH
CHARTS
A world of Candlestick patterns and Technical
Chart patterns with summary

Mr. Dhanvant kumar

TRADE WITH CHARTS
Contents

Welcome Letter

Quick guide

Terminology

Candlestick Patterns

Chart Patterns

01
 TRADE WITH CHARTS
Welcome letter

Dear Fellow Trader,

Welcome to the world of trading chart patterns,

where the art of analyzing charts meets the science of
making profitable trades. I am thrilled to present to
you this comprehensive e-book dedicated to
unraveling the mysteries of chart patterns and
empowering you with the knowledge and skills to
navigate the dynamic world of trading.

Whether you are a novice trader or an experienced

investor, understanding chart patterns can provide
you with valuable insights into market behavior and
help you make informed trading decisions

So, fellow trader, I invite you to embark on this

exciting journey with me. Open your mind to the
possibilities that chart patterns present, and let us
together unlock the door to profitable trading.

Wishing you success and prosperity in your trading

endeavors.

sincerely,
Dhanvant kumar

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 TRADE WITH CHARTS

Quick guide

"The trend is your friend until the end

when it bends." - Ed Seykota

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TRADE WITH CHARTS
Quick guide

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 TRADE WITH CHARTS

Terminology

"The stock market is a no-called-strike

game. You don't have to swing at
everything – you can wait for your pitch."
- Warren Buffett

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 TRADE WITH CHARTS
Terminology

Breakout

A significant price movement that surpasses a key

level of support or resistance, signaling a
potential change in the trend or the continuation
of an existing trend.

Resistance

A price level where selling pressure is expected to

outweigh buying pressure, causing the price to
reverse or stall its upward movement.

Support

A price level where buying pressure is expected to

outweigh selling pressure, causing the price to
reverse or bounce higher.

Trend line

The general direction in which a security's price is

moving. It can be upward (bullish), downward
(bearish), or sideways (range-bound).

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 TRADE WITH CHARTS
Terminology

Retracement

A temporary reversal or counter-move against

the prevailing trend, often considered a potential
buying or selling opportunity.

Breakout confirmation

The confirmation of a breakout by observing a

sustained price movement beyond a significant
support or resistance level, often accompanied by
increased volume.

Bullish

A term used to describe a positive or optimistic

outlook on the market or a particular security,
anticipating upward price movement.

Bearish

A term used to describe a negative or pessimistic

outlook on the market or a particular security,
anticipating downward price movement.

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 TRADE WITH CHARTS

Candlestick
patterns

"The stock market is filled with

individuals who know the price of
everything, but the value of nothing."
- Benjamin Graham

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Morning Star
A bullish reversal pattern that
forms after a downtrend. It
consists of three candlesticks: a
long bearish candle, a short
bearish or bullish candle, and a
long bullish candle.

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Evening Star
A bearish reversal pattern that
occurs after an uptrend. It
comprises three candlesticks: a
long bullish candle, a short bearish
or bullish candle, and a long
bearish candle.

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Shooting Star
A bearish reversal pattern with a
small body and a long upper
shadow. It indicates a potential
trend reversal after an upward
move.

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Hammer Pattern
A bullish reversal pattern with a
small body and a long lower
shadow. It suggests a potential
trend reversal after a downward
move.

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Hanging Man
A bearish reversal pattern similar
to the hammer but occurs after an
upward move. It suggests a
potential trend reversal.

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Engulfing pattern
A reversal pattern that occurs
when a small candlestick is
followed by a larger candlestick
that completely engulfs it. It
signals a possible trend reversal.

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Tweezer Top
A bearish reversal pattern formed
by two consecutive candlesticks
with identical highs. It suggests a
potential trend reversal.

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Tweezer Bottom
A bullish reversal pattern formed
by two consecutive candlesticks
with identical lows. It indicates a
possible trend reversal.

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Bullish Harami
A bullish reversal pattern that
forms after a downtrend. It
consists of two candlesticks, with
the second one having a smaller
range and fully enclosed within
the body of the first.

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Bearish Harami
A bearish reversal pattern that
occurs after an uptrend. It
comprises two candlesticks, with
the second one having a smaller
range and fully enclosed within
the body of the first.

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Chart
Patterns

"The market is like a puzzle,

and the chart is the blueprint."
- Paul Tudor Jones

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Ascending Triangle
Bullish continuation pattern
characterized by a flat top and
rising bottom. Breakout above the
resistance line indicates further
upward movement.

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Descending Triangle
Bearish continuation pattern with
a flat bottom and descending top.
Breakdown below the support line
suggests further downward
movement.

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lish
Bul
Bea
rish

Symmetrical Triangle
Consolidation pattern with
converging trendlines. Breakout
can occur in either direction,
signaling a potential trend
continuation.

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Double Top
Bearish reversal pattern formed
by two consecutive peaks at a
similar level. Breakdown below
the neckline confirms a potential
trend reversal.

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Double Bottom
Bullish reversal pattern consisting
of two consecutive troughs at a
similar level. Breakout above the
neckline suggests a potential
trend reversal.

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Head and Shoulders

Bearish reversal pattern
comprising a central peak (head)
and two smaller peaks (shoulders)
on either side. Breakdown below
the neckline indicates a potential
trend reversal.

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Inverse Head and

Shoulders
Bullish reversal pattern opposite
to the head and shoulders pattern.
Breakout above the neckline
suggests a potential trend
reversal.

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Triple Top
Bearish reversal pattern formed
by three consecutive peaks at a
similar level. Breakdown below
the neckline confirms a potential
trend reversal.

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Triple Bottom
Bullish reversal pattern
comprising three consecutive
troughs at a similar level.
Breakout above the neckline
suggests a potential trend
reversal.

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Diamond Top
Bearish reversal pattern
characterized by a broadening
formation resembling a diamond.
Breakdown below the support line
suggests a potential trend
reversal.

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Diamond Bottom
A bullish reversal pattern that
occurs after a downtrend. It
resembles an inverted diamond
and indicates a possible trend
reversal.

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Cup and Handle

A bullish continuation pattern
that occurs after a significant
upward move. It resembles a cup
followed by a small handle and
suggests further price increases.

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Bull Flag
A bullish continuation pattern
that occurs after a strong price
increase. It consists of a small
consolidation (flag) followed by
another upward move.

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Bear Flag
A bearish continuation pattern
that occurs after a significant
price decrease. It comprises a
small consolidation (flag) followed
by another downward move.

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h
Bullis
Beari
sh

Pennant
A short-term continuation pattern
that resembles a small
symmetrical triangle. It suggests a
temporary pause before the
resumption of the previous trend.

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Falling Wedge
A falling wedge is a bullish chart
pattern formed by converging
trendlines slanted in a downward
direction.

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Rising Wedge
A rising wedge is a bearish chart
pattern formed by converging
trendlines slanted in an upward
direction.

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Bullish Rectangle
A bullish rectangle is a
continuation chart pattern that
occurs within an uptrend.

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Bearish Rectangle
A bearish rectangle is a
continuation chart pattern that
appears within a downtrend.

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h
Bullis
Beari
sh

Flag and Pennant

These are continuation patterns
that occur after a significant price
movement. Flags are rectangular,
while pennants are small
symmetrical triangles.

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Bullish
Island Reversal
A bullish reversal pattern that
forms a small gap on both sides of
a price range, creating an "island."
It suggests a potential trend
reversal.

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Bearish
Island Reversal
A bearish reversal pattern that
forms a small gap on both sides of
a price range, creating an "island."
It suggests a potential trend
reversal.

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Rising
Three Methods
A bullish continuation pattern
that occurs during a temporary
consolidation within an uptrend.
It consists of a long bullish candle
followed by three small bearish
candles and another long bullish
candle.

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Falling
Three Methods
A bearish continuation pattern
that appears during a temporary
consolidation within a downtrend.
It comprises a long bearish candle
followed by three small bullish
candles and another long bearish
candle.

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V-Shaped Reversal
A bullish reversal pattern
characterized by a sharp and rapid
price recovery after a significant
decline.

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Inverted
V-Shaped Reversal
A bearish reversal pattern
characterized by a sharp and rapid
price incline and then similarly
decline.

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Rounded Bottom
A bullish reversal pattern that
indicates a gradual shift from a
downtrend to an uptrend. It
resembles a rounded bottom
formation on the price chart.

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Three
Rising Valleys
A bullish reversal pattern that
consists of three consecutive
troughs with higher lows. It
suggests a potential trend
reversal.

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Three
Falling Peaks

A bearish reversal pattern formed

by three consecutive peaks with
lower highs. It indicates a possible
trend reversal.

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Broadening Top
A reversal pattern characterized
by expanding price ranges. It
suggests increased volatility and
potential trend reversal.

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Thank you for

choosing
"Trade with charts"

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