Chart patterns cheat sheet (ultimate edition)

13.11.2021 2:02 pm

Good day, dear traders!

We’ve prepared a cheat sheet for you to help you identify the most common and reliable pricing patterns. It is worth noting that patterns from the “undefined” group are usually classified as bullish and bearish, but practice shows that when they appear, the price can go anywhere. And so, let’s take a look.

Bullish patterns

Inverted head and shoulders, double and triple bottoms are the simplest, most common and reliable bullish patterns.Let’s talk about a bullish flag. It usually forms on an uptrend. At the beginning of its formation, the volume is high and gradually decreases towards the end until a massive upward breakout with large volume.A cup with a handle is extremely rare and mostly on higher timeframes.

Uncertainty patterns

Different types of triangles and wedges are very popular patterns that can be seen on different time frames. In the classic TA books, the rising wedge and falling triangle are referred to as bearish patterns, while the falling wedge and ascending triangle are referred to as bullish patterns. But in practice, it is very important to observe the side of its breakout, as a result, they can be both bullish and bearish, like a symmetrical triangle. We must wait for proper confirmation of the breakout in order to make a correct trading decision.

Bearish patterns

These patterns are the opposite of a bullish pattern, but work the same way.

If you are interested in learning more about a particular pattern, write in the comments – we’ll tell you! Skyrex was with you. In touch!

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