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CRC
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INCLUDES CANOLESTICK i oa PATTERNS
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CeCe ata tDISCLAIMER
THE INFORMATION PROVIDED IN THIS
BOOK IS FOR EDUCATIONAL PURPOSES
ONLY. IT 1S NOT INTENDED TO BE A
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 E
TO BE SMARTER
THAN THE REST,
WE JUST HAVE 10
BE MORE
DISCIPLINED THAN
THE REST"
-warren buffetLET'S LEARN VARIOUS
CHART PATTERNSKC ART
TOP WITH CANDLESTIC
DOUBLE
rin,
1 I h,DOUBLE TOP PATTERN
A double top is an extremely
bearish technical reversal pattern
that forms after an asset reaches a
high price two consecutive times
with a moderate decline between
the two highs. It is confirmed once
the asset's price falls below a
support level equal to the low
between the two prior highs.ae
{ CHART
ES
CANDL
£ BOTTOM WITH
L
pouBDOUBLE BOTTOM PATTERN
A double bottom is an extremely
bullish technical reversal pattern
that forms after an asset reaches a
low price two consecutive times
with a moderate support between
the two lows. It is confirmed once
the asset's price go above a
resistance level equal to the high
between the two prior lows.TRIPPLE TOP WITH CANDLESTICK (
aTTRIPPLE TOP PATTERN
A tripple top is an extremely
bearish technical reversal pattern
that forms after an asset reaches a
high price three consecutive times
with a moderate decline between
the three highs. It is confirmed
once the asset's price falls below
a support level equal to the low
between the three prior highs.=
TRIPPLE BOTTOM WITH CANDLESTICK apyTRIPPLE BOTTOM PATTERN
A tripple bottom is an bullish
technical reversal pattern that
forms after an asset reaches a low
price three consecutive times with
a moderate support between the
three lows. It is confirmed once
the asset's price go above a
resistance level equal to the high
between the three prior lows.HEAD AND SHOULDER WITH CANDLES” 3x
CHARTHEAD & SHOULDER PATTERN
A head & shoulder pattern is a
chart formation that appears as a
baseline with three peaks, where
the outside two are similar in
height and the middle is highest &
breakout confirmed once asset
breaks support level & it
resembles with human head and
shoulder shape thats why it is
called as head & shoulderINVERTED HEAD AND SHOULDER :
CANDLESTICK CHARTINVERSE HEAD & SHOULDER
An inverse head and shoulders is
similar to the standard head and
shoulders pattern, but inverted:
with the head and shoulders top
used to predict reversals in
downtrends. the price falls to a
trough and then rises; the price
falls below the previous trough
and then rises again; finally, the
price falls again but not as far as
the second trough. Once the final
trough is made, the price heads
upward & breaks resistanceRISING WEDGE WITH CANDLESTICK “nayRISING WEDGE PATTERN
The rising wedge is a technical
chart pattern used to identify
possible trend reversals. The
pattern appears as an upward-
sloping price chart featuring two
converging trendlines. It is
usually accompanied by
decreasing trading volume.
breakout confirmed once it
break support trendline goes
. downwardFALLING WEDGE WITH CANDLESTICK CHARFALLING WEDGE PATTERN
The falling wedge pattern is
characterized by a chart pattern
which forms when the market
makes lower lows and lower
highs with a contracting range.
When this pattern is found in a
downward trend, it is considered
a reversal pattern, breakout
confirmed once it breaks
resistance trendline and goes
upward directionieee cro ae
BULLISH RECTANGLE WITH CANDLESTIC °
CHARTBULLISH RECTANGLE
The bullish rectangle is a
continuation patterns that
occur when a price pauses
during a strong trend and
temporarily bounces between
two parallel levels before the
trend continues, breakout
confirmed once it break its
resistance & goes in upward
direction7"
BEARISH RECTANGLE WITH CANDLESTicK
CHARTBEARISH RECTANGLE
The bearish rectangle is a
continuation pattern that
occurs when a price pauses
during a strong downtrend and
temporarily bounces between
two parallel levels before the
trend continues, breakout
confirmed once it break its
support & goes in downward
irectioni
BULLISH FLAG WITH CANDLESTICK ChaptBULLISH 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 flagNS
BEARISH FLAG WITH CANDLESTiCK CHARTBEARISH 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.BULLISH SYMMETRICAL WITH CANDLES
CHART
TieBULLISH SYMMETRICAL
TRIANGLE
A bullish symmetrical triangle
is a bullish continuation chart
Co 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 directionBEARISH SYMMETRICAL WITH CAND Egy
CHART
IckBEARISH 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 directionCUP & HANDLE WITH CANDLESTICK iqpyCUP & 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
signal a buying opportunity to
buy a stock, breakout
confirmed once it break
neckline/resistance & goes
upward_ 2
B
invERTED CUP & HANDLE WITH CAND EStiq
CHARTINVERTED 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 ee
support. The stock then stalls
much like a bear flag with
slight upward pressure before
breaking down below support.ASCENDING TRIANGLE WITH CANDLEST: cx
CHARTASCENDING 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
increased.pattern clearly
indicates that the market
moves higher as the higher
lows are formed heading
toward the resistance line.it
can break from any direction
MeineDESCENDING TRIANGLE WITH GANDLES Ick
CHARTDESCENDING 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,
lower highs show that the selling
Pressure has increased._pattern
Clearly indicates that the market
Moving lower as the lower highs
are formed heading toward the
Support line. it can break from
any directionLET'S LEARN ABOUT
CANDLESTICK PATTERNSHIGH HIGH
SHADOW
OPEN PRICE Lose price |
CLOSE PRICE OPEN PRICE
Low
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./
= PEALBODY
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.Tages
HAMMER CANDLESTICK IN
LIVE CHART_
\ CLOSING SHOULD BE
MORE THAN 50% OF
PREVIOUS CANDLE
if
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.styeetty
rn Lese Hy
we ttitin, ' I
|
I a” Lal
Downtrend
PIERCING PATTERN IN LIVE
CHART
are7
SECOND CANOLE
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
CHARTee yy FT]
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 ~ jorning Star : UJ
MORNING STAR IN LIVE
CHARTTHREE 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._ Mee
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
rend second green candle
Ows starting of bullish trend.LL
BULLISH HARAMI IN LIVE
CHART\ \/
INVERTED HAMMER
Inverted hammer pattern
occur at end of downtrend,
which indicates bullish reversal.
in this candle body situated at
end / lower side with big
upper shadow, it is inverse
hammer pattern.
Shadow should be double than
the body of candle.a.
m[
INVERTED HAMMER IN LIVE
CHARTan
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 long 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.. ad Stop Loss
i
hy Entry
I
pl
HANGING MAN IN LIVE
CHARTSECOND 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
reen candle second is
bearish red candle which
engulfing first candle means
covery green candle with
red candle which means bears
are more active & bear market
is coming up.tn,
BEARISH ENGULFING IN
LIVE CHART/ i f
/ Fr
/ \y
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
| and third is red
completely out of real bodies
of first & third candle.THE EVENING STAR IN LIVE
CHARTath
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.tly,
BEARISH HARAMI IN LIVE
CHARTSHOOTING STAR PATTERN
Shooting star occurs at the
end of uptrend, whic
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
ke market one side. it has
very small body with long
shadow.[ere rere err errr ae i
TRADING PSYCHOLOGY ¢
#1 AVOID FOMO
( FEAR OF MISSING OUT J
YOU SHOULD NOT TRY TO CATCH EVERY
TRADE, YOUR GOAL ASA 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 !TS
EASY TO STUCKED INTO STRESSFUL
TRADES. FOCUS ON WORK LIFE
BALANCE & MAKE SURE YOU ARE
BUILDING SUSTAINABLE HABITS.