If you’re serious about making money in the markets, you must master candlestick patterns. Once you do, the guesswork ends and smart, profitable trades begin. Let’s simplify it:
1. BULLISH CHART PATTERNS – These point to a potential price rise, usually after a downtrend when buyers start stepping in.
Inverted Head & Shoulders – A powerful reversal signal; expect the trend to flip upward.
Double Bottom – The 'W' shape signals strong support and a potential breakout.
Bullish Flag – A short downtrend that sets up for a big upward move.
Triple Bottom – Three support touches? Buyers are serious. Reversal incoming.
Cup & Handle – Smooth dip, slight pullback, then a breakout. Classic continuation.
2. NEUTRAL (INDEFINITE) PATTERNS – These can go either way, so don’t jump the gun. Wait for the breakout.
Symmetrical Triangle – Price tightens… then explodes. Direction depends on the breakout.
Falling Wedge – Looks bearish, often breaks upward—but wait for confirmation.
Rising Wedge – Can fake bullishness before dropping—watch closely.
Descending Triangle – Typically bearish, but a bullish breakout is possible with strong demand.
Ascending Triangle – Generally bullish, but always confirm before entering.
3. BEARISH CHART PATTERNS – These suggest a potential drop, great for identifying exit points or short setups.
Head & Shoulders – The gold standard for spotting reversals. Once the neckline breaks—watch out.
Triple Top – Price hits resistance three times and fails. Expect sellers to take control.
Double Top – Like an upside-down 'W'—a clear signal bulls are losing grip.
Bearish Flag – Small upward correction before a bigger drop. A continuation of the downtrend.
