Chart Patterns PDF Free Download

Photo of author
Written By Kabirat Adeniyi

All about books and pdfs

The Pattern Development and Price Projection Guide for Professionals and Investors! Features charts for more than 60 technical patterns that have been identified and studied by experts as well as in-depth analysis of the major three categories of chart patterns: reversal, continuation and reversal.

Are you looking for powerful candlestick patterns pdf download?

Do you want to learn the most profitable chart patterns pdf?

Then you are at the right place. This post is all about candlestick patterns pdf download, which will help you in learning many things related to forex trading.

Candlesticks are one of the most popular tools used by traders while they are analyzing charts and making decisions on what to buy or sell. Candlesticks are not just used in forex but also in other markets like commodities and stocks.

In this post, we will discuss about 35 candlestick patterns pdf download which will be useful for both beginners as well as experienced traders.

35 Powerful Candlestick Patterns Pdf Download

Candlestick patterns are one of the most powerful tools used by forex traders to predict market direction. They help predict where the current trend will take price and whether it is likely to continue or reverse. These patterns are also known as “signs” because they indicate a shift in sentiment in the market, which can be used to identify potential reversals and trends before they happen.

For example, if you were looking at a chart of EUR/USD and saw a bullish engulfing pattern forming on the daily time frame (which indicates that price will continue higher), you would have an indication that this pair is headed higher and could start buying.

In this guide, we’ll look at 35 candlestick patterns that every trader should know about so that you can use them in your own analysis!

Chart Patterns PDF Free Download

Introduction

This article is about Chart Patterns PDF. This is a free PDF download by Thomas Bulkowski. Chart Patterns by Thomas Bulkowski is considered as one of the best books on chart patterns. This book comprehensively covers 23 chart patterns and 10 event patterns such as cup with handle, double top, head-and-shoulders top, rectangle, triangular, expansion triangle, symmetrical triangle and wedge.

Dark Cloud Cover

The Dark Cloud Cover is a two-day chart pattern that signals a bearish reversal. The first day is a strong white candlestick with a close near the high, and the second day opens lower, trades lower for most of the session and closes well into the body of the first day’s white candle.

The long shadow of both candlesticks shows there was resistance at that level. When price moves back down to test this resistance again, it implies weakness in its ability to continue higher.

Since it shows exhaustion in upward momentum after breaking through an important resistance level, traders should watch for signs of further weakness such as: Lower highs on following days; an increase in volume during price action; or even lower lows on these days as well (see examples).

Doji Star

Doji Star

Doji Star is a two candlestick pattern that shows indecision in a market. It is considered to be a bullish reversal pattern, which signals the end of an uptrend or downtrend and the beginning of a new trend. The Doji Star appears when there are four days of price movement:

Day 1: A long white candlestick (or green bar) with a large body and no shadows (no lower shadow).

Day 2: A Doji candle with no shadows (black bar) means that it’s neutral—not bullish or bearish. The open and close prices do not differ much from each other, indicating indecision between buyers and sellers during trading hours. If there were any shadows on this day’s candle, it would have been considered as bearish; if not, it would have been considered as bullish because there wasn’t much difference between opening price ($1) and closing price ($2), which indicates little change in prices over time (#1).

Evening Star

The evening star candlestick pattern is a bearish reversal pattern that has three candles.

The first candle is bullish, but the middle candle does not extend higher than the first one. It can be either a Doji Star or a Bearish Engulfing Pattern. The third candle extends lower than both of its predecessors and forms a long bearish body.

The first candlestick (the tall white bar) indicates strong buying pressure and an uptrend, while the two subsequent black bars represent selling pressure against the trend and signal an upcoming sell-off.

Hammer

Hammer candlestick pattern is a bullish reversal pattern. It is formed at the end of a downtrend, when prices have fallen sharply and then close near their lows with no upper wick. The hammer can be bullish or bearish depending on which side of price action it appears.

A bullish hammer is formed after a long downtrend, when traders begin to anticipate an upward trend. For example, if you see this chart pattern in your favorite stock and notice that prices have been trending down for several days in a row then suddenly rally above yesterday’s close before falling back to rest at about where they started (or slightly below) then you may want to keep an eye on this stock because it may be ready for another run higher!

Hanging Man

The Hanging Man is a bearish reversal pattern that forms after an uptrend, and whose confirmation suggests that the trend will reverse and that the price will head down. The longer this pattern lasts, the more significant it becomes. The Hanging Man is similar to a Doji (which can be either bullish or bearish) but has a lower opening and closing prices than a Doji. In other words, it looks like a long wick / short body candlestick with no upper shadow. A hanging man may also be referred to as “hammer” or “kicking bottom” depending on the charting platform you use..

Harami Cross

Harami Cross is a two-day pattern. The first day is a long white candle and the second day is a small candle that is completely contained within the first one. The second day is a doji, or close to a doji. It gaps up from the first day’s close.

The Harami Cross can signal that there will be an upward price move of approximately 100%.

Harami

Harami is a two-candle reversal pattern that is formed when the previous candles are of opposite colors. The first candle is large and black, and the next candle is small and white. The second candle should be contained within the range of the first one, with no overlap.

The Harami pattern represents indecision among traders or investors due to uncertainty in market conditions or outlooks. This can happen because of fundamental changes that affect pricing such as economic data releases, news reports about companies/industries being affected by geopolitical developments etc., which make it difficult for traders to predict future price movements accurately enough so that they decide not to trade or invest at all until things become clearer again (which also means: until prices change).

Inverted Hammer

Inverted hammers are bearish reversal patterns that indicate a possible trend change. The pattern is made up of two candlesticks: a long white real body (the first day) followed by an unusually short black real body. The second day’s reversal is signaled by its large distance from the first day’s low and its gap lower on the chart. This pattern can also be found in composite charts, like daily and weekly time frames, where it acts as a signal to traders that a prior uptrend may have ended and it might be time to sell their holdings.Traders often use price projections along with other indicators when interpreting price action for a potential inverted hammer setup.For example, if you’re looking at an hourly chart and see an upside gap followed by another upside gap higher than the previous one – this would give you more confidence in labeling your current position as bullish rather than bearish because there are more signs pointing towards higher prices; namely: those gaps.When looking at individual candles within these types of setups there should be no hesitation when labeling them because they’re blatantly obvious – i.e., if you see two large bodies on either side then that’s definitely not going to be considered neutral/gray area territory – so go ahead label them accordingly!

Inverted Hammer – Bearish Reversal Patterns

Inverted Hammer

The inverted hammer is a bullish reversal pattern that occurs after the price has shown a significant downward move. It’s often found at the bottom of an uptrend and can signal that prices will reverse upward. The inverted hammer candlestick pattern begins with a large down day, followed by three smaller days where each day’s high is lower than the previous day’s high until you see a long lower shadow on your last bar (the third and final bar). The long lower shadow indicates that there was strong buying support for this security price action after it hit its low point, indicating an end to selling pressure and signaling potential reversal of trend direction.

Inverted Hammer – Bullish Breakout Patterns

An inverted hammer is a reversal pattern that looks like the inverse of a shooting star. It forms after an uptrend and indicates that bears have taken control of the market. The pattern has two parts:

  • A long lower shadow (more than 2 times the length of the body)
  • A small body with no upper wick. The stock opens at or near its high and then closes near its low for less than half of it’s range. It can also be found in an uptrend where it acts as a signal that the bulls are taking control over the bears.

Morning Star

Morning Star Pattern

The Morning Star pattern is a bullish reversal pattern that consists of three candlesticks. The first is a long red candle, which indicates a price decline. The second candlestick opens higher than the body of the previous red candlestick, but then falls to close near its low. This green body should be small in comparison to both the preceding red bar and ensuing white one (it can even appear as an inky-black void). Finally, there is a third white candle which closes at or above its open and which has an upper shadow longer than its lower shadow; this marks confirmation of the reversal from bearishness back to bullishness.

Conclusion

Hopefully this was helpful to you in understanding the basics of chart patterns. We have also included a PDF download below where you can find more information if needed. Anything else please let us know and we will try to help!

Leave a Comment