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Trading Chart Patterns Guide

The document is a guide to major trading chart patterns, detailing how to identify corrections and pullbacks. It covers various patterns such as Head & Shoulders, Inverse Head & Shoulders, Double Tops, and others, providing entry points, stop loss strategies, and target projections based on pattern height. Each pattern emphasizes the importance of volume confirmation for breakouts and breakdowns.

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asindiangamer123
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4 views11 pages

Trading Chart Patterns Guide

The document is a guide to major trading chart patterns, detailing how to identify corrections and pullbacks. It covers various patterns such as Head & Shoulders, Inverse Head & Shoulders, Double Tops, and others, providing entry points, stop loss strategies, and target projections based on pattern height. Each pattern emphasizes the importance of volume confirmation for breakouts and breakdowns.

Uploaded by

asindiangamer123
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

Trading Chart Patterns Guide

This starter PDF lists major chart patterns and how to identify correction/pullback.
Head & Shoulders
Uptrend reversal. Correction: Right shoulder lower than head, neckline break confirms.
Entry: Wait for breakout/breakdown confirmation with volume.
Stop Loss: Below support (bullish) or above resistance (bearish).
Target: Pattern height projected from breakout.
Inverse Head & Shoulders
Downtrend reversal. Correction: Pullback after neckline breakout.
Entry: Wait for breakout/breakdown confirmation with volume.
Stop Loss: Below support (bullish) or above resistance (bearish).
Target: Pattern height projected from breakout.
Double Top
Bearish reversal. Correction after second top and neckline break.
Entry: Wait for breakout/breakdown confirmation with volume.
Stop Loss: Below support (bullish) or above resistance (bearish).
Target: Pattern height projected from breakout.
Double Bottom
Bullish reversal. Correction ends near second bottom.
Entry: Wait for breakout/breakdown confirmation with volume.
Stop Loss: Below support (bullish) or above resistance (bearish).
Target: Pattern height projected from breakout.
Ascending Triangle
Higher lows into resistance. Breakout on volume.
Entry: Wait for breakout/breakdown confirmation with volume.
Stop Loss: Below support (bullish) or above resistance (bearish).
Target: Pattern height projected from breakout.
Descending Triangle
Lower highs into support. Breakdown on volume.
Entry: Wait for breakout/breakdown confirmation with volume.
Stop Loss: Below support (bullish) or above resistance (bearish).
Target: Pattern height projected from breakout.
Symmetrical Triangle
Wait for breakout direction.
Entry: Wait for breakout/breakdown confirmation with volume.
Stop Loss: Below support (bullish) or above resistance (bearish).
Target: Pattern height projected from breakout.
Bull Flag
Small downward correction after strong rally.
Entry: Wait for breakout/breakdown confirmation with volume.
Stop Loss: Below support (bullish) or above resistance (bearish).
Target: Pattern height projected from breakout.
Bear Flag
Small upward correction after sharp fall.
Entry: Wait for breakout/breakdown confirmation with volume.
Stop Loss: Below support (bullish) or above resistance (bearish).
Target: Pattern height projected from breakout.
Cup & Handle
Handle is the correction before breakout.
Entry: Wait for breakout/breakdown confirmation with volume.
Stop Loss: Below support (bullish) or above resistance (bearish).
Target: Pattern height projected from breakout.

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