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Trading Patterns Visual Guide

The document provides a visual guide to candlestick patterns used in technical analysis, highlighting bullish and bearish reversal signals such as the Hammer and Shooting Star. It also includes neutral patterns like the Doji, and a cheat sheet summarizing various patterns, their types, trend contexts, and recommended actions. The guide emphasizes the importance of confirmation before trading based on these patterns.

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rbarjun64
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20 views3 pages

Trading Patterns Visual Guide

The document provides a visual guide to candlestick patterns used in technical analysis, highlighting bullish and bearish reversal signals such as the Hammer and Shooting Star. It also includes neutral patterns like the Doji, and a cheat sheet summarizing various patterns, their types, trend contexts, and recommended actions. The guide emphasizes the importance of confirmation before trading based on these patterns.

Uploaded by

rbarjun64
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Candlestick Pattern Visual Guide

Essential Visuals for Technical Analysis

1. Bullish Reversal Patterns (Buy Signals)

The Hammer

Hammer: Found at the bottom of a downtrend. The long lower wick shows that sellers pushed price down,
but buyers rejected the low and pushed it back up. High probability of a reversal.

Bullish Engulfing

Engulfing: A large green candle completely covers (engulfs) the previous small red candle. It signals a
powerful shift in momentum from sellers to buyers.
2. Bearish Reversal Patterns (Sell Signals)

Shooting Star

Shooting Star: The opposite of a hammer. Occurs at the top of an uptrend. The long upper wick shows
buyers tried to push higher but were violently rejected by sellers.
3. Neutral & Indecision Patterns

Doji

Doji: The opening and closing prices are almost identical. This represents total indecision in the market. A
breakout usually follows a Doji.

4. Complete Cheat Sheet Table

Pattern Name Type Trend Context Action

Morning Star Bullish Reversal After a downtrend Buy / Long

Evening Star Bearish Reversal After an uptrend Sell / Short

Inverted Hammer Bullish Reversal Bottom of trend Watch for confirmation

Hanging Man Bearish Reversal Top of trend Prepare to exit longs

Marubozu Continuation Anywhere Follow the direction

Pro Tip: Never trade a pattern in isolation. Always look for Confirmation. For example,
if you see a Hammer, wait for the next candle to close higher before entering the trade.

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