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Chart Pattern Flashcards


Revised June 2016

©2016 TradeSmart University. All Rights Reserved


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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

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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.

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Name this Pattern Name this Pattern

Name this Pattern Name this Pattern

Name this Pattern Name this Pattern

Name this Pattern Name this Pattern

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V-Bottom V-Top

• Bullish Reversal Pattern • Bearish Reversal Pattern


• Sharp Rally follows a sharp decline • Sharp declines follows a sharp rally
• Reverses in just 1-2 candles • Reverses in just 1-2 candles
• Terminates a primary trend • Terminates a primary trend

Double Bottom Double Top

• Bullish Reversal Pattern • Bearish Reversal Pattern


• Occurs after long bearish trend • Occurs after long bullish trend
• Failure of attempt to make a new low • Failure of attempt to make a new high
• Confirmed on break up from neck line • Confirmed on break below neck line
• Typical time frame is 2-5 weeks on daily chart • Typical time frame is 2-5 weeks on daily chart
• Terminates previous primary trend • Terminates previous primary trend

Triple Bottom Triple Top

• Bullish Reversal Pattern • Bearish Reversal Pattern


• Occurs after long bearish trend • Occurs after long bullish trend
• Failure of two attempts to make new lows • Failure of two attempts to make new highs
• Confirmed on break up from neck line • Confirmed on the break below neck line
• Typical time frame is 3-8 weeks on daily chart • Typical time frame is 3-8 weeks on daily chart
• Terminates previous primary trend • Terminates previous primary trend

Inverted Head & Shoulders Head & Shoulders

• Bullish Reversal Pattern • Bearish Reversal Pattern


• Occurs after long bearish trend • Occurs after long bullish trend
• Like a triple bottom with the middle valley • Like a triple top with the middle peak making
making a lower low a higher high
• Confirmed on break up from neck line • Confirmed on break down from neck line
• Typical time frame is 3-8 weeks on daily chart • Typical time frame is 3-8 weeks on daily chart
• Terminates previous primary trend • Terminates previous primary trend

Line/Flat Bottom
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• 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

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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

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Symmetrical Triangle Channel

• A Broad consolidation pattern • Broad Consolidation pattern


• Can break bullish or bearish • May lead to either a bullish or bearish break
• Lower highs and higher lows • Typically lasts several months on a daily chart
• Typically lasts 2-4 months on a daily chart (at least 2-3 months)
• Indicates a rebalancing (consolidation) of the • Indicates a rebalancing (consolidation) of the
prevailing bullish or bearish trend prevailing bullish or bearish trend

Ascending Triangle Descending Triangle

• A Broad consolidation pattern • A Broad consolidation pattern


• Can break bullish or bearish with a slight • Can break bullish or bearish with a slight
bullish bias bearish bias
• Similar highs and higher lows • Lower highs and similar lows
• Typically lasts 2-4 months on a daily chart • Typically lasts 2-4 months on a daily chart
• Indicates a rebalancing (consolidation) of the • Indicates a rebalancing (consolidation) of the
prevailing bullish or bearish trend prevailing bullish or bearish trend

Stair Step Inverted Triangle

• A continuation pattern • A Broad consolidation pattern


• Suggests the trend will continue • Difficult to trade because it lacks a clearly
• More prominent in bullish trends defined break out point
• Volume typically contracts during the pattern • Higher highs and lower lows
and increases on the pattern breakout • Can last many months
• Typically lasts between 3-10 trading sessions • Indicates a rebalancing (consolidation) of the
prevailing bullish or bearish trend

Bearish Pennant
Bullish Pennant
• Bearish continuation pattern
• Suggests the trend will continue bearish • Bullish continuation pattern
• Volume typically contracts during the pattern • Suggests the trend will continue bullish
and increases on the pattern breakout • Volume typically contracts during the pattern
• Typically lasts between 3-10 trading sessions and increases on the pattern breakout
• Typically lasts between 3-10 trading sessions

Bear Flag Bull Flag

• Bearish continuation pattern • Bullish continuation pattern


• Suggests the trend will continue bearish • Suggests the trend will continue bearish
• Volume typically contracts during the pattern • Volume typically contracts during the pattern
and increases on the pattern breakout and increases on the pattern breakout
• Typically lasts between 3-10 trading sessions • Typically lasts between 3-10 trading sessions

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Name this Pattern Name this Pattern

Name this Pattern Name this Pattern

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Rising Wedge Falling Wedge

• Medium sized pattern, typically forms over 2-6 • Medium sized pattern, typically forms over 2-6
weeks on a daily chart weeks on a daily chart
• Both lines are rising, though converging on • Both lines are falling, though converging on
each other each other
• Can occur as a continuation or reversal • Can occur as a continuation or reversal
• Heavily favored to break bearish • Very heavily favored to break bullish

Continuation/Runaway Gap Break Away Gap

• Complete gap in price action • Complete gap in price action


• Occurs after a trend is already established • Occurs after a new bottom or new top has
• Gaps in the direction of the trend to signal a been established
continuation, or runaway of the trend • Gaps in the opposite direction of the
• Can measure the expected move based on prevailing trend
the previous range before the gap • Signals start of trend in the opposite direction
• Gap should remain “open”

Intentionally left blank 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

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