Chart Patterns Cheat Sheet PDF Download Free – (2023)

Chart Patterns Cheat Sheet PDF Download Free, Powerful Candlestick patterns Book PDF download, All trading chart patterns 2023 PDF free download

Chart patterns are very important for every traders in stock market as well as commodity and forex market. 

When you do trading you see daily so many different types of chart patterns on your screen. And after technical analysis you can predict where will the price can go.

And thus we make profits.

But if you understand chart patterns then you can make regular profits by trading.

So today In this article, we’ll provide a user-friendly guide to common chart patterns, along with a downloadable PDF cheat sheet, all designed to help you enhance your trading strategies without any cost.

Chart Patterns Cheat Sheet PDF Download Free

Here are the details of this chart patterns cheat sheet PDF–

PDF Name	Chart Pattern Cheat Sheet 2023 Book
Language	English
Format	PDF
Pages	68
Ratings	4.9/5
Author	Deepak Sen
Total patterns	15
PDF Size	1 MB
Download Link	Given Below

Download Candlestick Chart Patterns Book cheat sheat 2023

Chart patterns are visual representations of price movements on a stock chart. They show recurring shapes that indicate potential future price trends.

Recognizing these patterns can give traders an edge in predicting market moves.

Here are some common chart patterns that you can download free in PDF format by this cheat sheet.

So before you want to download full PDF cheat sheet of trading chart patterns, now understand each patterns one by one with examples–

1. The Head and Shoulders Chart Pattern

This pattern looks like a person’s head and shoulders. It signals a potential trend reversal from bullish to bearish. The head is the highest point, flanked by two shoulders. A break below the “neckline” confirms the pattern.

Sure, let’s break down the Head and Shoulders chart pattern in a simple way with an easy-to-understand example:

Imagine you have a favorite toy that’s a bouncy ball. Sometimes when you bounce the ball, it goes up, comes down a bit, goes up again even higher, and then bounces down again. This movement is a bit like how the price of a stock might move on a chart.

Now, let’s relate this to the Head and Shoulders pattern:

1. Left Shoulder: Imagine the first bounce of your bouncy ball. It goes up and then comes down a bit. This is like the “left shoulder” of the Head and Shoulders pattern. In the stock chart, it’s a small rise followed by a small dip in price.

2. Head: Now, the second bounce is exciting! The ball goes up even higher than before, like a mountain peak. This is similar to the “head” of the pattern. On the stock chart, it’s a big rise in price.

3. Right Shoulder: After the exciting peak, the ball bounces up again but not as high as the head. This is the “right shoulder” of the pattern. In the stock chart, it’s another rise, but it’s lower than the head.

So, our bouncy ball has made a shape that kind of looks like a head with two shoulders on the sides, right? In the stock market, this pattern is a signal that the price might go down soon.

How to Use the Head and Shoulders Chart Pattern?

• Entry Point: When the price breaks below the line that connects the two “shoulders,” it’s like the ball rolling down the other side of the mountain. That’s when traders might enter a trade by selling the stock.
• Stop Loss: Just in case the price suddenly goes back up, traders usually set a “stop loss.” This is like a safety net to automatically sell the stock if the price starts going up again.
• Target: To figure out where the price might go down to, you can measure the distance from the top of the head to the neckline (the line connecting the shoulders). Then, you subtract that distance from the point where the neckline was broken. This gives you an idea of the potential target price where the stock might reach.
• Exit: Once the price reaches the target or starts going up again, traders might decide it’s time to exit the trade and take their profits.

Remember, just like your bouncy ball, the stock market can be unpredictable. The Head and Shoulders pattern is just one tool to help traders make decisions, but it’s not always guaranteed to work.

Now let’s move on to second chart patterns which is–

2. The Double Top and Double Bottom Chart Patterns

These patterns show resistance and support levels. A double top forms after a price increase and signals a potential downward trend. Conversely, a double bottom forms after a price drop and signals a potential upward trend.

Example–

Imagine you’re looking at a line that shows the price of a stock over time. Now, think of two mountains or two valleys on this line. These are the Double Top and Double Bottom chart patterns.

DOUBLE TOP PATTERN:

1. First Peak: The price goes up and reaches a high point. This is like the top of a mountain. But after reaching this high, the price starts coming down a bit.
2. Dip: After the first peak, the price goes down for a while, but not too far.
3. Second Peak: Here’s the tricky part. The price goes up again, almost as high as the first peak, forming another mountain-like shape. This is the “double top.”
4. Drop: After the second peak, the price starts going down again, often more noticeably than the first dip.

When you see this pattern, it’s a sign that the price might start going down more significantly.

DOUBLE BOTTOM PATTERN:

1. First Valley: The price goes down and reaches a low point. This is like the bottom of a valley. But after reaching this low, the price starts going up a bit.
2. Rise: After the first valley, the price goes up for a while, but not too much.
3. Second Valley: Here’s the interesting part. The price goes down again, almost as low as the first valley, forming another valley-like shape. This is the “double bottom.”
4. Rise: After the second valley, the price starts going up again, often more noticeably than the first rise.

When you spot this pattern, it’s a sign that the price might start going up more significantly.

How to use double top and double bottom chart patterns?

Double Top Entry Point: Traders might sell the stock when the price breaks below the bottom between the two peaks.

Double Top Stop Loss: To manage risk, traders often set a stop loss just above the second peak. If the price goes up again, the trade is automatically closed to prevent big losses.

Double Top Target: To estimate how much the price might drop, traders measure the distance from the bottom between the peaks to the lowest valley. Then, they subtract that distance from the breakout point.

Double Bottom Entry Point: Traders might buy the stock when the price breaks above the top between the two valleys.

Double Bottom Stop Loss: For safety, traders can set a stop loss just below the second valley. If the price goes down again, the trade closes to prevent losses.

Double Bottom Target: To estimate how much the price might rise, traders measure the distance from the top between the valleys to the highest peak. Then, they add that distance to the breakout point.

Remember, patterns don’t always work perfectly. It’s important to consider other factors and do research before making trading decisions.

3. The Triangles (Ascending, Descending, Symmetrical) Chart Patterns

Triangles represent price consolidation before a potential breakout.

• An ascending triangle shows higher lows and a flat top.
• A descending triangle has lower highs and a flat bottom.
• A symmetrical triangle has both trendlines converging.

Absolutely, let me explain the Ascending, Descending, and Symmetrical Triangles chart patterns in a straightforward manner:

Examples of The Triangles Chart Patterns:

Imagine you have a rubber band. Sometimes you stretch it in different ways, making different shapes. Triangles on a stock chart are a bit like those shapes. They show how the price is getting squeezed, like a rubber band, before it might break out in a new direction.

ASCENDING TRIANGLE:

• Bottom Line: Draw a straight line along the recent lows of the price. This is the “bottom line” of the triangle.
• Top Line: Draw another line that starts from a higher point and slopes downwards. This is the “top line” of the triangle.

As time goes on, the price moves within these lines, getting squeezed. When the price breaks above the top line, it might go up more.

DESCENDING TRIANGLE:

• Top Line: Draw a straight line along the recent highs of the price. This is the “top line” of the triangle.
• Bottom Line: Draw another line that starts from a lower point and slopes upwards. This is the “bottom line” of the triangle.

The price moves within these lines, getting squeezed. If the price breaks below the bottom line, it might go down further.

SYMMETRICAL TRIANGLE:

• Top Line: Draw a line connecting the recent highs of the price.
• Bottom Line: Draw another line connecting the recent lows of the price.

The price moves within these lines, creating a triangle shape. This pattern doesn’t give a strong hint about the direction, so traders watch for a breakout above or below the lines to make their decisions.

How to use Triangle Chart Patterns:

Entry Point: Traders might buy when the price breaks above the top line of an ascending triangle or breaks below the bottom line of a descending triangle.

Stop Loss: To manage risk, traders often set a stop loss just below the bottom line of an ascending triangle or just above the top line of a descending triangle.

Target: For ascending triangles, traders measure the height of the triangle at its widest part and add that to the breakout point. For descending triangles, they subtract that height from the breakout point.

–Symmetrical Triangle Target: For this pattern, traders measure the height of the widest part of the triangle and add or subtract it from the breakout point, depending on the direction of the breakout.

Remember, these patterns are like clues, not guarantees. Other factors can affect the price too. Always do research and be cautious with your trading decisions. Just like stretching a rubber band too much, the market can be unpredictable!

4. The Cup and Handle Chart Pattern

This pattern resembles a tea cup. It’s a bullish continuation pattern. The “cup” is a U-shape, followed by a small consolidation called the “handle.” A breakout from the handle suggests a potential price increase.

Here’s an explanation of the Cup and Handle chart pattern without bold text:

The Cup And Handle Chart Pattern:

Think of a cup, like the kind you might drink from. Now imagine that the price of a stock is following the shape of that cup on a chart. This is the Cup and Handle chart pattern.

Cup Part:

1. The price goes up, forming the left side of the cup.
2. Then, the price comes down, creating the bottom of the cup.
3. After that, the price goes up again, forming the right side of the cup.

This cup shape shows that the price might be getting ready for a potential upward move.

Handle Part:

1. Following the cup, the price goes down a bit.
2. Then, it moves sideways in a smaller range.

This part is like the handle of the cup. It’s a pause before the potential breakout.

How to use cup and handle chart pattern?

Entry Point: Traders might buy the stock when the price breaks above the top of the cup, where it started to go down after forming the right side.

Stoploss: A stop loss could be set just below the bottom of the cup, to limit potential losses if the price suddenly goes down.

Target: To estimate how much the price might go up, measure the distance from the bottom of the cup to the top, and add that to the breakout point.

Remember, the Cup and Handle pattern is like a hint, not a sure thing. Other factors matter too, so always research and be careful with your trading choices.

5. The Flag and Pennant Chart Pattern

Flags and pennants occur after strong price movements. A flag is rectangular and slopes against the prevailing trend. A pennant is small and symmetrical. Both patterns indicate a brief consolidation before the trend resumes.

Example of Flag and Pennant Chart Pattern:

Imagine you’re watching a flag or a pennant waving in the wind. These shapes have two parts: a tall pole and a small flag or pennant attached to it. On a stock chart, these shapes are the Flag and Pennant patterns.

FLAG PATTERN:

1. Pole: Imagine a pole shooting up fast. This is like the price of a stock that went up quickly.
2. Flag: After the pole, the price calms down and moves sideways in a smaller range. This is the “flag.”

This pattern suggests a short rest before the price might continue going up.

PENNANT PATTERN:

1. Pole: Just like the flag, imagine a pole shooting up fast. The pole shape is similar to the flag pattern.
2. Pennant: After the pole, the price forms a smaller triangle shape that looks like a pennant.

This pattern also shows a pause before the potential continuation of the price movement.

How to use the Flag and Pennant Chart Pattern?

Entry Point: Traders might buy when the price breaks above the top of the flag or pennant.

Stop Loss: To manage risk, traders can set a stop loss just below the bottom of the flag or pennant.

Target: To estimate how much the price might move, measure the height of the pole and add it to the breakout point.

Remember, these patterns act like hints, not guarantees. Other factors can affect the price too. Do your research and consider all aspects before making trading decisions.

6. The Wedge (Rising and Falling) Chart Pattern

Wedges are similar to triangles but slant either upward or downward. Rising wedges show narrowing price ranges and suggest a potential downward breakout. Falling wedges show narrowing price ranges and suggest a potential upward breakout.

Examples of Wedge and Falling Wedge chart patterns:

Imagine you’re drawing two sloping lines that come together, forming a triangle. These lines squeeze the price of a stock. On a stock chart, these shapes are the Rising Wedge and Falling Wedge patterns.

RISING WEDGE PATTERN:

1. Upper Line: Draw a line connecting the recent highs of the price. This is the “upper line.”
2. Lower Line: Draw another line connecting the recent lows of the price. This is the “lower line.”

As time goes on, the price moves within these lines, creating a triangle shape that points upwards. This pattern suggests the price might go down soon.

FALLING WEDGE PATTERN:

1. Upper Line: Draw a line connecting the recent highs of the price. This is the “upper line.”
2. Lower Line: Draw another line connecting the recent lows of the price. This is the “lower line.”

The price moves within these lines, forming a triangle shape that points downwards. This pattern indicates the price might go up soon.

How to use Wedge Pattern?

Entry Point: For the Rising Wedge, traders might sell the stock when the price breaks below the lower line. For the Falling Wedge, they might buy when the price breaks above the upper line.

Stop Loss: To manage risk, traders can set a stop loss just above the upper line for the Rising Wedge or just below the lower line for the Falling Wedge.

Target: To estimate how much the price might move, measure the height of the widest part of the wedge and add it to the breakout point for the Rising Wedge. For the Falling Wedge, subtract that height from the breakout point.

Remember, these patterns are like signs, not guarantees. Consider other factors and do your research before making trading decisions.

7. The Bat and Butterfly Chart Pattern

These patterns are more complex but valuable for advanced traders. They involve specific Fibonacci ratios and offer potential reversal signals. The “bat” has a broader B point range, while the “butterfly” has narrower ratios.

Example of The Bat and Butterfly Chart Patterns:

Imagine you’re looking at the wings of different flying creatures – a bat and a butterfly. These creatures have distinct shapes. On a stock chart, these shapes represent the Bat and Butterfly patterns.

BAT PATTERN:

• XA Leg: Imagine drawing a line from a low point to a high point. This is the “XA leg.”
• AB Leg: Draw a line from the high point of the XA leg to a lower point. This is the “AB leg.”
• BC Leg: Draw another line from the lower point of the AB leg to a higher point. This is the “BC leg.”
• CD Leg: Finally, draw a line from the higher point of the BC leg to a lower point. This is the “CD leg.”

This pattern involves specific Fibonacci ratios and suggests a potential reversal.

BUTTERFLY PATTERN:

• X Leg: Imagine drawing a line from a low point to a high point. This is the “X leg.”
• A Leg: Draw a line from the high point of the X leg to a lower point. This is the “A leg.”
• B Leg: Draw another line from the lower point of the A leg to a higher point. This is the “B leg.”
• C Leg: Now draw a line from the higher point of the B leg to a lower point. This is the “C leg.”
• D Leg: Finally, draw a line from the lower point of the X leg to a higher point. This is the “D leg.”

This pattern also involves specific Fibonacci ratios and suggests a potential reversal.

Using the Bat and Butterfly Patterns:

Entry Point: Traders might buy or sell when the price completes the CD leg of the pattern.

Stop Loss: To manage risk, traders can set a stop loss below the low point of the CD leg (for a bullish pattern) or above the high point of the CD leg (for a bearish pattern).

Target: To estimate potential price movements, traders use Fibonacci extensions and projections to find target levels.

Remember, these patterns are more complex and require understanding Fibonacci ratios. They’re like puzzle pieces that traders use to make predictions. Always research thoroughly before applying these patterns to your trading decisions.

So above we have explained some common trading chart patterns with examples and we also told about entry, exit, stoploss and target. I hope all these patterns will help you in trading in stock market.

List of candlestick chart pattern 2023

Sr. No.	Chart Pattern Name
1.	Head and Shoulder Chart Pattern
2.	Double Top and Double Bottom Chart Pattern
3.	Triangles Chart Patterns
4.	Cup and handle chart pattern
5.	The Wedge Chart Patterns
6.	Flag and Pennant Chart Pattern
7.	The Bat and Butterfly Chart Pattern

Now let’s understand that how to download chart pattern cheat sheet Free PDF–

How to download chart pattern cheat sheet PDF Free?

Here are some basic steps to download chart patterns cheat sheet PDF Free–

• First of all click on this link to download chart pattern cheat sheet PDF.
• After clicking on the link you will be redirect to the Google drive page.
• On this page you can read the PDF cheat sheet about trading chart patterns.
• To download chart patterns in PDF, you can see the download icon in the top right corner so click on that download icon.
• After clicking, your chat pattern cheat sheet PDF will be downloaded absolutely free.

I hope now you know that how to download free chart patterns cheat sheet PDF. 

Related:

• Candlestick patterns Book in Hindi (Download Now)
• Chart Patterns PDF Free Download in Hindi

Stock Chart Patterns Cheat Sheet PDF Free Download – FAQ’s

Free Chart Patterns Book Cheat Sheet PDF Download ‘Conclusion’

The goal of this article was to give you chart patterns cheat sheet PDF for Free download.

In this post we told you about how to download chart pattern cheat sheet PDF free. We have also explain some basic chart patterns with examples. I hope you get so much value while reading this article.

Overall, remember these important points always–

• Understanding chart patterns can greatly improve your trading decisions. By recognizing these simple shapes on a chart, you can identify potential trends and reversals.
• To make things easier, we’ve created a downloadable PDF cheat sheet summarizing these patterns. Enhance your trading strategies today by using this free resource.
• Remember, practice is key. Study the patterns, observe how they play out in real market situations, and refine your trading strategy accordingly.

If you have any questions in your mind related trading chart patterns or stock market then you can ask me in the comment section below.

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