Chart patterns are a vital part of technical analysis as they help traders find trading opportunities and develop a successful trading strategy. At basic, these visual chart formations that repeatedly appear on trading charts are an excellent tool for traders to enter and exit trades with a reasonably high probability of success by integrating risk management tools.
But there are many trading patterns, and remembering all of them can take a lot of work. For example, chart patterns can be bullish or bearish or indicate a trend reversal, continuation, or ranging mode. And whether you are a beginner or advanced trader, you clearly want to have a PDF to get a view of all the chart patterns you want and need to use.
So, if you are looking for a chart patterns cheat sheet to use when trading, then you’ve come to the right place!
Chart Patterns Cheat Sheet Download (PDF File)
First, here’s our chart patterns cheat sheet with all the most popular and widely used trading patterns among traders. You can print it and stick it on your desktop or save it in a folder and use it whenever needed.
Chart Patterns Cheat Sheet PDF [Download]
Why Do You Need a Chart Pattern Cheat Sheet?
Chart patterns cheat sheet is an essential tool for every trader who is keen to make trading decisions by identifying repetitive patterns in the market. All types of traders typically use trading patterns to determine when to enter or exit a position, and by many opinions, chart analysis is among the most effective ways to trade financial instruments. Basically, you are using past market data to determine the next price movements.
Now, of course, some basic chart patterns are easy to spot. For example, you don’t really need chart patterns cheat sheet to identify the Doji candlestick pattern as it is relatively simple to identify; however, you might need a cheat sheet to remember the chart formations of other famous Doji candle patterns like the Dragonfly, Gravestone, or the long-legged. What’s more, other helpful chart patterns are more complicated to spot. For instance, remembering the formations and ratios of harmonic chart patterns, like the harmonic crab pattern, can be pretty complex, so a cheat sheet can be helpful.
In sum, much like a trading plan template, a cheat sheet is just something you should use to make your trading process less complicated. As a matter of fact, many professional traders who work for proprietary trading firms are advised to use notes and printable sheets and place them somewhere close to their trading workspace. It is a simple working method that helps traders get the material they need while trading the markets.
Mimic how professionals trade. Discover your inner talent.
Learn everything you need to know about trading the markets from beginner level to the most advanced, helping you to create critical skills and techniques to you can apply in your trading right away.
3 Types of Chart Patterns
As we mentioned, there are different types of chart trading patterns. Those can firstly be categorized as bullish and bearish. Bullish chart patterns indicate that the downtrend is likely to be over, and a new bullish trend is about to begin. On the other hand, bearish chart patterns suggest that the existing uptrend is weakening, and a new downward trend is expected to start.
At the same time, chart patterns can also be classified as harmonic, classical (traditional), and single candlestick patterns.
Finally, there are three groups of chart patterns:
1. Reversal Patterns
Reversal patterns are chart formations that indicate a change in direction from a bearish to a bullish market trend and vice versa. These trend reversal patterns are sort of price formations that appear before a new trend begins and signal that the price action trading is likely to move in the opposite direction. Therefore, traders use reversal chart patterns to identify the end of a trend and the beginning of a new opposite trend.
2. Continuation Patterns
Opposite to trend reversal patterns, continuation patterns signal that the existing trend is likely to continue. Typically, when traders spot a continuation chart pattern, it allows them to enter a trade and join the current trend.
3. Bilateral Patterns
Bilateral chart patterns are somewhere in between reversal and continuation patterns. In essence, they indicate indecision between buyers and sellers; hence the price is in equilibrium. As bilateral chart patterns do not point to a particular direction, traders use these chart formations to trade inside a predefined range using support and resistance levels. Then as soon as the price breaks above or below the support or resistance level, they switch to the breakout trading strategy and enter a trade in the breakout direction.
In summary, mastering the art of chart patterns can help you become a better trader and understand how financial markets work.
These repeated patterns, along with the integration of other technical indicators, will allow you to estimate the market sentiment and predict the next price movement. And, as remembering all the chart patterns can be quite tricky for some traders, a cheat sheet is an excellent and straightforward way to do that, especially at the beginning of your trading journey.
And do not forget; you can always join our trading room and discuss any topic you’d like with our professional trading analysts.
Do you want access to incredible daily live streams by expert market analysts?
Next LIVE stream starts in: