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Trading Chart Pattern V2

The document provides educational information on various financial chart patterns and candlestick patterns used in trading, including bullish and bearish flags, triangles, and reversal patterns. It emphasizes that the information is not financial or legal advice and encourages users to consult professionals for their financial strategies. Additionally, it discusses trading psychology tips to improve trading habits and decision-making.

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Karnkumar Nanans
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0% found this document useful (0 votes)
34 views68 pages

Trading Chart Pattern V2

The document provides educational information on various financial chart patterns and candlestick patterns used in trading, including bullish and bearish flags, triangles, and reversal patterns. It emphasizes that the information is not financial or legal advice and encourages users to consult professionals for their financial strategies. Additionally, it discusses trading psychology tips to improve trading habits and decision-making.

Uploaded by

Karnkumar Nanans
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
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EC | Wana Se RS th DLL PATTERN'S at | B' Ce Cuma) DISCLAIMER THE INFORMATION PROVIDED IN THIS BOOK IS FOR EDUCATIONAL PURPOSES ONLY. IT 1S NOT INTENDED TO BEA SOURCE OF FINANCIAL OR LEGAL ADVICE MAKING ADJUSTMENTS TO A FINANCIAL STRATEGY OR PLAN SHOULD ONLY BE UNDERTAKEN AFTER CONSULTING WITH A PROFESSIONAL. THE PUBLISHER AND THE AUTHOR MAKE NO GUARANTEE OF FINANCIAL RESULTS OBTAINED BY USING THIS BOOK. WE MAKE NO GUARANTEES AS TO THE ACCURATENESS, QUALITY, OR COMPLETENESS OF THE INFORMATION AND WE SHALL NOT BE RESPONSIBLE OR LIABLE FOR ANY ERRORS, OMISSIONS, OR INACCURACIES IN THE INFORMATION OR FOR ANY USER'S RELIANCE ON THE INFORMATION.USER IS SOLELY RESPONSIBLE FOR VERIFYING THE INFORMATION AS BEING APPROPRIATE FOR USER'S PERSONAL USE, INCLUDING WITHOUT LIMITATION, SEEKING THE ADVICE OF A QUALIFIED PROFESSIONAL REGARDING ANY SPECIFIC FINANCIAL QUESTIONS A USER MAY HAVE.WE ARE NOT A SECURITIES BROKER/DEALER OR AN INVESTMENT ADVISOR, - "WE DON'T HA ¢ 10 BE SMARTER THAN THE REST, WE JUST HAVE TO re asnne i BULLISH FLAG WITH CANDLESTICK CHapr BULLISH FLAG PATTERN The bullish flag formations are found in stocks with strong uptrends and considered good continuation patterns. They are called bull flags because the pattern resembles a flag on a pole. The pole is the result of a vertical rise in a chart & the flag results from a period of consolidation, breakout confirmed once it breaks from upperside of flag i , BEARISH FLAG WITH CANDLESTICK CHART BEARISH FLAG PATTERN The beaish flag is an upside down version of the bull flag. It has the same structure as the bull flag but inverted. The flagpole forms on an almost vertical panic price drop as bulls get blindsided from the sellers, then a bounce that has parallel upper and lower trendlines, which form the flag, breakout confirmed once chart break from lower trendline. OY BULLISH SYMMETRICAL WITH CANDLES CHART Tiek BULLISH SYMMETRICAL TRIANGLE A bullish symmetrical triangle is a bullish continuation chart pattern. The pattern is formed y two converging trend lines that are symmetrical in relation to the horizontal line. The top line is a bearish trend line creating the resistance, breakout confirmed once chart break resistance & goes upward direction BEARISH SYMMETRICAL WITH CAND: Egy CHART Itx BEARISH SYMMETRICAL TRIANGLE A bearish symmetrical triangle is bearish continuation chart pattern. The pattern is formed by two converging trend lines that are symmetrical in relation to the horizontal line, lower support line is bullish trendline, breakout confirmed once it break su port & goes in downwar direction CUP & HANDLE WITH CANDLESTICK apy CUP & HANDLE PATTERN A cup and handle is a technical indicator where the price movement of a chart resembles a “tea cup” followed by a downward trending price pattern. This drop, or “handle” is meant to shea a buying petty to buy a stock, breakout confirmed once it break neckline/resistance & goes upward ee a inverTeD CUP & HANDLE WITH CAND sri, CHART INVERTED CUP & HANDLE PATTERN The inverted Cup and Handle pattern forms an upside-down cup and handle. The pattern is formed after a pullback from a swing low before a sell-off to the prior swing low and stalls due to raf ebaat dat support. The stock then stalls much like a bear flag with slight upward pressure before breaking down below support. ASCENDING TRIANGLE WITH CANDLESTicx CHART ASCENDING TRIANGLE It is formed as a right-angled triangle with a resistance and a trendline of higher lows,resistance does not allow the chart to move more upward, higher lows show that the buying pressure has es ue clearly indicates that the market moves higher as the higher lows are formed heading toward the resistance line.it can break from any direction ee DESCENDING TRIANGLE WITH CANDLES (ck CHART DESCENDING TRIANGLE It is formed in the downtrend and indicates the continuation of the downtrend.formed asa downward sloping triangle with Support and a slope o lower highs support does not allow the Chart to move more downward, wer highs show that the selling Pressure has increased.pattern Clearly indicates that the market Moving lower as the lower highs are formed heading toward ¢ e Support line. it can break from any direction LET'S LEARN ABOUT CANDLESTICK PATTERNS HIGH HIGH SHADOW OPEN PRICE Close price | CLOSE PRICE OPEN PRICE tow WHAT IS CANDLESTICK ? 3 Candlestick shows current mood of market. green candle represent strength / buying & red candle represent weakness / selling. rectangle part is called as bod thin line passing through body is called as shadow or wick, upper shadow shows the high Price and lower shadow shows low price live during session. / j= = FEALBODY LOWER SHADOW HAMMER CANDLE Hammer is single candlestick pattern which occurs at the end of the downtrend & indicates bullish reversal. the body of candle situated at top side with lower shadow which should be double than the body size. this candle has little or no upper shadow. A | al HAMMER CANDLESTICK IN LIVE CHART _ | - CLOSING SHOULD BE MORE THAN 50% OF PREVIOUS CANDLE & PIERCING PATTERN Piercing pattern is a two candlestick chart pattern which occurs at downtrend indicates bullish reversal. first candle is bearish then second candle open as gap down but closes above 50% of previos candle. which simply means bull market is starting. "hy seat _ el yn e titi, Downtrend | hs glint PIERCING PATTERN IN LIVE CHART ‘SECOND CANDLE ENGULFING THE FIRST a? CANDLE BULLISH ENGULFING Bullish Engulfing pattern is a two candlestick chart pattern which occurs at downtrend, which signals bullish reversal. second candle completly engulfing first candle. engulfing means covering previous candle. second candle is green candle which shows bullish sign. ni BULLISH ENGULFING IN LIVE CHART ea 1! THE MORNING STAR The morning star pattern is a multiple candlestick chart pattern which occurs at downtrend, which indicates : bullish reversal. its made of three candle first is bearish, second is doji means neautral market third bullish candle which shows market is ready to go upward. o Morning Star ll MORNING STAR IN LIVE CHART THREE WHITE SOLDIERS Three white soldiers pattern is a multiple candlestick chart pattern which occurs at downtrend, which indicates bullish reversal. its made of three bullish candles. they dont have long shadow's. every next candle open's within the previos candle's body. BULLISH HARAMI The bullish harami pattern is a two candlestick chart pattern which occurs at downtrend, which indicates bullish reversal. it consist two candle first Candle is big red candle and then second is bullish small candle within the range of Previous candle's body. first candle shows bearish trend second green candle Ows starting of bullish trend. ee Le. BULLISH HARAMI IN LIVE CHART Ny INVERTED HAMMER Inverted hammer pattern occur at end of downtrend, which indicates bullish reversa. in this candle body situated at end / lower side with big upper shadow, it is inverse © hammer pattern. shadow chould be double than the body of candle. Dos mU INVERTED HAMMER IN LIVE CHART aN HANGING MAN PATTERN Hanging man pattern forms at the end of uptrend, which indicates bearish reversal. body of candle is located at upside and it has lon lower shadow which should be doubled the size of body. this candle has no or small upper shadow. it indicates simply market may fall after this. this look like hanging man thats why it called hanging man pattern. Year Stop Loss i hy Entry pr HANGING MAN IN LIVE CHART ‘SECOND CANDLE ENGULFING FIRST CANDLE \ / __-5 BEARISH ENGULFING Bearish engulfing pattern is two candlestick pattern which occurs at the end of uptrend, which indicates bearish reversal. it formed by two candle first is green candle second is bearish red candle which engulfing first candle means noventa green candle with red candle which means bears are more active & bear market is coming up. tty, BEARISH ENGULFING IN LIVE CHART " Tt / THE EVEING STAR The eveing star is multiple candlestick pattern which occurs at the end of uptrend, which indicates bearish reversal. made up of three candle first bullish, second candle is doji neans neutral and third is red bearish candle which signals starting O n THE EVENING STAR IN LIVE CHART an THREE BLACK CROWS The three black crows is multiple candlestick pattern which occurs at the end of uptrend, which indicates bearish reversal. it consist three red candle which do not have long shadows. all three candle opens within the previous candle's body. BEARISH HARAMI Bearish harami is multiple candlestick pattern which occurs after uptrend, it indicates bearish reversal. it consist two candle first candle is bullish big candle & second candle is small bearish candle which within the range of previous bullish Candle. it shows market may fall now. ea BEARISH HARAMI IN LIVE CHART SHOOTING STAR PATTERN Shooting star occurs at the end of uptrend, which indicates bearish reversal signal. in this pattern body is located at lower side and there is long upper shadow. it is inverse of the hanging man candlestick pattern. it Is formed when opening & closing price near to each other. DOJI PATTERN Doji pattern is candlestick pattern of sideways / indecision occurs when opening & closing prices are almost equal. it happens when both the buyers and sellers are fighting but no one wins to take market one side. it has very small body with long shadow. SS TRADING PSYCHOLOGY 71>: #1 AVOID FOMO ( FEAR OF MISSING OUT J YOU SHOULD NOT TRY TO CATCH EVERY TRADE, YOUR GOAL AS A TRADER IS NOT TO CATCH EVERY TRADE BUT TO FOCUS ON THE QUALITY TRADES WHERE THE RISK REWARD RATIO IS IN YOUR FAVOUR. DAY TRADER DOSEN'T MEANS YOU HAVE TO TRADE EVERY DAY, IF THERE IS NO BREAKOUT / SIGNAL THEN RELAX. #2 MOVE ON FROM BAD DAYS EVERY TRADER HAS BAD DAYS WEEKS AND MONTHS. ACCEPT IT, MOVE ON AND PREPARE FOR NEXT TRADE SUCCESSFUL TRADERS OVERCOME ADVERSITY. TRADING PSYCHOLOGY ps #3 DONT CARRY YESTERD § § BAGGAGE EVERY DAY START WITH FRESH EMPTY MIND WITH CLEAN SLATE, DON'T LET ONE TRADE INFLUENCE ANOTHER TRADE APPROACH EVERY TRADE AS IF IT'S THE START OF THE DAY. #4 DON'T DO OVER-TRADING ARE YOU CONTROLLING YOUR TRADING OR TRADING TERMINAL IS CONTROLLING YOU. TRADING CAN BE ADDICTING AND ITS EASY TO STUCKED INTO STRESSFUL TRADES. FOCUS ON WORK LIFE BALANCE & MAKE SURE YOU ARE BUILDING SUSTAINABLE HABITS.

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