Learn the shape. Read the context.
Thumb through chart and candlestick patterns, see their defining features, and learn what still needs confirmation.
Chart patterns
Double top
What to look forTwo peaks near the same resistance, separated by a pullback.
What to watch nextWatch the intervening low. Two peaks alone do not confirm a reversal; support can hold.
Double bottom
What to look forTwo lows near the same support, separated by a rebound.
What to watch nextWatch the intervening high. A break above it matters; a fresh low undermines the idea.
Ascending triangle
What to look forRepeated highs meet rising lows as the price range tightens.
What to watch nextWatch the boundary break and follow-through. A move back inside can be a false breakout.
Bull flag
What to look forA strong rise is followed by a smaller, downward-sloping pause.
What to watch nextWatch for a break out of the pause. A shape alone does not establish continuation.
Candlestick patterns
Doji
What to look forOpen and close are almost equal, leaving a very small real body.
What to watch nextIt shows balance or indecision. Read surrounding candles and location before assigning direction.
Hammer
What to look forAfter a decline: a small body near the high with a long lower wick.
What to watch nextLook for subsequent strength. A lower wick by itself does not confirm a reversal.
Shooting star
What to look forAfter a rise: a small body near the low with a long upper wick.
What to watch nextLook for subsequent weakness. The prior trend and nearby resistance provide context.
Engulfing bodies
What to look forThe second candle body surrounds the first. Bullish and bearish versions mirror each other.
What to watch nextCompare real bodies, then check the prior trend and follow-through. Wicks need not be engulfed.
Swipe to browse, use the buttons, or focus a gallery and press the left/right arrow keys. These are educational illustrations; patterns can fail and do not establish a trading edge by themselves. References: Fidelity chart patterns · StockCharts candlesticks.
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