Chart Pattern Flashcards

Revised June 2016

©2016 TradeSmart University. All Rights Reserved




This page intentionally left blank

Page 2
Printer Release

The user of these flash cards is hereby granted written consent to print this
document for appropriate use.

Appropriate use includes:

- Personal use
- Group study
These cards may not be printed for the following uses:
- Public distribution
- Resale or redistribution
- Any use for monetary gain
- Re-printed or re-branded to reflect a business other than TradeSmart University
- Any other use not expressly consented above under “appropriate uses”.

TradeSmart University
June 2016

Page 3
How to use these Chart Pattern flashcards

These flashcards are intended to be printed front and back, cut, and used to drill
your recognition of chart patterns. Feel free to print them at home or take them to
a regular printer such as Kinko’s or Sir Speedy and have them printed for you. We
recommend a heavier paper, such as card stock, as this will be more sturdy and
make your flash cards last longer.

Instructions:
1) Print pages 5-12 front and back (the descriptions are inverse to allow for this
printing).
2) Visually look at the printing to make sure the correct descriptions are on the
back of the correct front images.
3) Use scissors or a paper cutter to cut along the bold black lines
4) Once your cards are cut, use them to drill your knowledge of candlesticks.

NOTE: If you use a professional printer, they will have the ability to cut the entire
card deck at once, ensuring uniform card sizes.

Page 4
Name this Pattern Name this Pattern

Name this Pattern Name this Pattern

Name this Pattern Name this Pattern

Name this Pattern Name this Pattern

Name this Pattern Intentionally left blank

Page 5
 V-Bottom
• Bullish Reversal Pattern
• Sharp Rally follows a sharp decline
• Reverses in just 1-2 candles
• Terminates a primary trend
Double Bottom
• Bullish Reversal Pattern
• Occurs after long bearish trend
• Failure of attempt to make a new low
• Confirmed on break up from neck line
• Typical time frame is 2-5 weeks on daily chart
• Terminates previous primary trend
Triple Bottom
• Bullish Reversal Pattern
• Occurs after long bearish trend
• Failure of two attempts to make new lows
• Confirmed on break up from neck line
• Typical time frame is 3-8 weeks on daily chart
• Terminates previous primary trend
Inverted Head & Shoulders
• Bullish Reversal Pattern
• Occurs after long bearish trend
• Like a triple bottom with the middle valley
making a lower low
• Confirmed on break up from neck line
• Typical time frame is 3-8 weeks on daily chart
• Terminates previous primary trend
Intentionally left blank
V-Top
• Bearish Reversal Pattern
• Sharp declines follows a sharp rally
• Reverses in just 1-2 candles
• Terminates a primary trend
Double Top
• Bearish Reversal Pattern
• Occurs after long bullish trend
• Failure of attempt to make a new high
• Confirmed on break below neck line
• Typical time frame is 2-5 weeks on daily chart
• Terminates previous primary trend
Triple Top
• Bearish Reversal Pattern
• Occurs after long bullish trend
• Failure of two attempts to make new highs
• Confirmed on the break below neck line
• Typical time frame is 3-8 weeks on daily chart
• Terminates previous primary trend
Head & Shoulders
• Bearish Reversal Pattern
• Occurs after long bullish trend
• Like a triple top with the middle peak making
a higher high
• Confirmed on break down from neck line
• Typical time frame is 3-8 weeks on daily chart
• Terminates previous primary trend
Line/Flat Bottom
• Usually functions as Bullish Reversal
• Occurs after long bearish trend
• Trades in very small range
• Can last several weeks
• When it breaks up, it confirms bullish reversal
and termination of previous trend
Page 6
Name this Pattern Name this Pattern

Name this Pattern Name this Pattern

Name this Pattern Name this Pattern

Name this Pattern Name this Pattern

Name this Pattern Name this Pattern

Page 7
 Symmetrical Triangle
• A Broad consolidation pattern
• Can break bullish or bearish
• Lower highs and higher lows
• Typically lasts 2-4 months on a daily chart
• Indicates a rebalancing (consolidation) of the
prevailing bullish or bearish trend
Ascending Triangle
• A Broad consolidation pattern
• Can break bullish or bearish with a slight
bullish bias
• Similar highs and higher lows
• Typically lasts 2-4 months on a daily chart
• Indicates a rebalancing (consolidation) of the
prevailing bullish or bearish trend
Stair Step
• A continuation pattern
• Suggests the trend will continue
• More prominent in bullish trends
• Volume typically contracts during the pattern
and increases on the pattern breakout
• Typically lasts between 3-10 trading sessions
Bearish Pennant
• Bearish continuation pattern
• Suggests the trend will continue bearish
• Volume typically contracts during the pattern
and increases on the pattern breakout
• Typically lasts between 3-10 trading sessions
Bear Flag
• Bearish continuation pattern
• Suggests the trend will continue bearish
• Volume typically contracts during the pattern
and increases on the pattern breakout
• Typically lasts between 3-10 trading sessions
Channel
• Broad Consolidation pattern
• May lead to either a bullish or bearish break
• Typically lasts several months on a daily chart
(at least 2-3 months)
• Indicates a rebalancing (consolidation) of the
prevailing bullish or bearish trend
Descending Triangle
• A Broad consolidation pattern
• Can break bullish or bearish with a slight
bearish bias
• Lower highs and similar lows
• Typically lasts 2-4 months on a daily chart
• Indicates a rebalancing (consolidation) of the
prevailing bullish or bearish trend
Inverted Triangle
• A Broad consolidation pattern
• Difficult to trade because it lacks a clearly
defined break out point
• Higher highs and lower lows
• Can last many months
• Indicates a rebalancing (consolidation) of the
prevailing bullish or bearish trend
Bullish Pennant
• Bullish continuation pattern
• Suggests the trend will continue bullish
• Volume typically contracts during the pattern
and increases on the pattern breakout
• Typically lasts between 3-10 trading sessions
Bull Flag
• Bullish continuation pattern
• Suggests the trend will continue bearish
• Volume typically contracts during the pattern
and increases on the pattern breakout
• Typically lasts between 3-10 trading sessions
Page 8
Name this Pattern Name this Pattern

Name this Pattern Name this Pattern

Name this Pattern Intentionally left blank

Intentionally left blank Intentionally left blank

Intentionally left blank Intentionally left blank

Page 9
 Rising Wedge
• Medium sized pattern, typically forms over 2-6
weeks on a daily chart
• Both lines are rising, though converging on
each other
• Can occur as a continuation or reversal
• Heavily favored to break bearish
Continuation/Runaway Gap
• Complete gap in price action
• Occurs after a trend is already established
• Gaps in the direction of the trend to signal a
continuation, or runaway of the trend
• Can measure the expected move based on
the previous range before the gap
Intentionally left blank
Intentionally left blank
Intentionally left blank
Falling Wedge
• Medium sized pattern, typically forms over 2-6
weeks on a daily chart
• Both lines are falling, though converging on
each other
• Can occur as a continuation or reversal
• Very heavily favored to break bullish
Break Away Gap
• Complete gap in price action
• Occurs after a new bottom or new top has
been established
• Gaps in the opposite direction of the
prevailing trend
• Signals start of trend in the opposite direction
• Gap should remain “open”
Exhaustion Gap
• Complete gap in price action
• Occurs as a sign of exhaustion late in a trend,
and usually signals the end of the trend
• Gap will “fill” very quickly after it appears
(within a few days or couple of weeks)
• Do not trade immediately, wait for additional
confirmation of actual reversal
Intentionally left blank
Intentionally left blank
Page 10