Master These 10 Chart Pattern Rules & Never Fear Losses Again
The Core Patterns Cheat Sheet
Grouped for Easy Learning
|Bullish Signals ✅ | Bearish Signals❌
| Double Bottom | Double Top
Inverted Head & Shoulders | Head Shoulders |
| Falling Wedge | Rising Wedge |
| Bullish Flag | Bearish Flag |
| Bullish Pennant | Bearish Pennant |
| Triple Bottom | Triple Top |
| Bonus: Expanding Triangle (Breakout Direction Matters!) |
> 🔑 Key Insight: Patterns repeat themselves. Learn these shapes to predict price moves.
The 10 Golden Rules
(Follow these to avoid losses)
1. Trade WITH the Trend ➡️
Higher highs + higher lows = Uptrend (BUY).
Lower highs + lower lows = Downtrend (SELL).
2. Spot Support & Resistance Like a Sniper🎯
Support = Price floor (buy here).
Resistance = Price ceiling (sell here).
3. Wait for Breakout CONFIRMATION ✅
*Never* jump into a breakout until the candle *closes* outside the pattern (triangle/flag/etc.).
4. Double Tops/Bottoms = Reversal Alerts 🔄
Double Top = Trend reversing DOWN.
Double Bottom = Trend reversing UP.
5. Head & Shoulders = STRONG Reversal💥
Neckline break = Major trend change. Trust it!
6. PATIENCE Pays Off ⏳
Let patterns fully form. Half-baked patterns fail.
7. Measure Your Profit Target 📏
Example: Height of triangle = Price target after breakout.
8. ALWAYS Use a Stop Loss 🛑
Place stops below support (long trades) or above resistance (short trades).
9. Check Multiple Time Frames 🔍
Daily trend > 1-hour trend > 5-minute trend. Never trade blind!
10. Stick to Your PLAN✊
No FOMO. No panic exits. Entry + Stop Loss + Target = Unshakeable strategy.
💡 Pro Tips to Remember
- Emotions are your #1 enemy. The chart is king.
- No pattern works 100% of the time – but rules protect you when they fail.
- Combine patterns with the 10 rules – that’s where the magic happens.
> "The best traders aren’t psychic. They’re disciplined."
Level up your trading today → Let the charts guide you, not your gut. 🚀
(Share this cheat sheet with a trader who needs it!)
> ⚠️ Remember: No strategy guarantees 100% wins. But rules + patterns = fewer losses and smarter trades.