CHART
PATTERNS
CHEAT SHEET
FOR FOREX TRADERS
Spotting chart patterns is overwhelming. Don’t worry;
that’s completely natural when you're just getting
started.
We remember how complicated it was when we
started out in pattern analysis.
Sure, there're so many articles and YouTube videos
that make it look super easy. But things get harder
when you're looking for patterns on your own chart.
Now, we can't find the patterns for you, but at least,
we can give you this cheat sheet that has helped a
lot of traders, and it will probably help you as well!
We’ve outlined all the popular patterns and their
suggestions regarding the direction of the market.
In addition, we have included tons of examples!
Whenever you are in doubt, browse through and
read what’s relevant to your situation.
Happy and profitable trading!
©2019 ForexSpringBoard
@knowledgeofstockmarket
OVERVIEW
(You can zoom into the pictur e)
©2019 ForexSpringBoard
@knowledgeofstockmarket
REVERSAL
PATTERNS
Chart patterns that indicate a li ke ly
reversal of the pr evailing tr end.
©2019 ForexSpringBoard
@knowledgeofstockmarket
DOUBLE BOTTOM
A double bottom occurs when the price makes a low
within a downtrend, and then pulls back upwards.
Soon, there's another drop to a level roughly similar to
the first drop. However, the price begins to rise again,
and this time, it breaks above the pullback high.
What does it look like?
©2019 ForexSpringBoard
@knowledgeofstockmarket
Examples
©2019 ForexSpringBoard
@knowledgeofstockmarket
DOUBLE TOP
A double top occurs when the price makes a top within
an uptrend, and then pulls back downwards. Soon,
there's another high to a level roughly similar to the
first high. However, the price begins to fall again and
this time, it breaks below the pullback low.
What does it look like?
©2019 ForexSpringBoard
@knowledgeofstockmarket
Examples
©2019 ForexSpringBoard
@knowledgeofstockmarket
HEAD AND
SHOULDERS
This pattern is characterized by three
consecutivemarket highs, but these are located at
different levels: two lower highs (shoulders) aside and
one highest high (head) in between. In addition,
there's a neckline that we get by connecting the
pattern's lows.
What does it look like?
©2019 ForexSpringBoard
@knowledgeofstockmarket
Examples
©2019 ForexSpringBoard
@knowledgeofstockmarket
INVERSE
HEAD AND
SHOULDERS
This pattern is characterized by three
consecutivemarket lows, but these are located at
different levels: two higher bottoms (shoulders) aside
and one lowest bottom (head) in between. In addition,
there's a neckline that we get by connecting the
pattern's highs.
What does it look like?
©2019 ForexSpringBoard
©2019 ForexSpringBoard
@knowledgeofstockmarket
Examples
©2019 ForexSpringBoard
@knowledgeofstockmarket
RISING WEDGE
The rising wedge pattern forms when the price of the
currency pair moves up within a narrowing range. To
avoid false breakouts, you should wait for a candle to
close below the bottom trend line before entering.
What does it look like?
©2019 ForexSpringBoard
@knowledgeofstockmarket
Examples
©2019 ForexSpringBoard
@knowledgeofstockmarket
FALLING WEDGE
The falling wedge pattern forms when the price of the
currency pair moves down within a narrowing range.
To avoid false breakouts, you should wait for a candle
to close above the top trend line before entering.
What does it look like?
©2019 ForexSpringBoard
@knowledgeofstockmarket
Examples
©2019 ForexSpringBoard
@knowledgeofstockmarket
CONTINUATION
PATTERNS
Chart patterns that indicate a li ke ly
continuation of the pr evailing tr en d.
©2019 ForexSpringBoard
@knowledgeofstockmarket
BULLISH FLAG
Bullish flag patterns can be found in strong uptrends.
The shape of the pattern is similar to a flag on a pole,
hence the name. The pole is the result of a nearly
vertical price increase while the flag is formed as the
price consolidates after the increase.
What does it look like?
©2019 ForexSpringBoard
@knowledgeofstockmarket
Examples
©2019 ForexSpringBoard
@knowledgeofstockmarket
BEARISH FLAG
Bearish flag patterns can be found in strong
downtrends. The shape of the pattern is similar to a
flag on a pole, hence the name. The pole is the result of
a nearly vertical price decrease while the flag is
formed as the price consolidates after the decrease.
What does it look like?
©2019 ForexSpringBoard
@knowledgeofstockmarket
Examples
©2019 ForexSpringBoard
@knowledgeofstockmarket
BULLISH
PENNANT
The bullish pennant is similar to the bullish flag
pattern. The key difference is the consolidation phase
that shows a less intensive effort to reverse the trend.
What does it look like?
©2019 ForexSpringBoard
@knowledgeofstockmarket
Examples
©2019 ForexSpringBoard
@knowledgeofstockmarket
BEARISH
PENNANT
The bearish pennant is similar to the bearish flag
pattern. The key difference is the consolidation phase
that shows a less intensive effort to reverse the trend.
What does it look like?
©2019 ForexSpringBoard
@knowledgeofstockmarket
Examples
©2019 ForexSpringBoard
@knowledgeofstockmarket
ASCENDING
TRIANGLE
The ascending triangle pattern forms when the price is
making higher lows, but it is unable to break through a
resistance zone. It shows how buyers gain more and
more control as the price runs up to the resistance
level. Eventually, a breakout occurs that is usually
followed by a significant increase in price.
What does it look like?
©2019 ForexSpringBoard
@knowledgeofstockmarket
Examples
©2019 ForexSpringBoard
@knowledgeofstockmarket
DESCENDING
TRIANGLE
The descending triangle pattern forms when the price
is making lower highs, but it is unable to break through
a support zone. It shows how sellers gain more and
more control as the price runs down to the support
zone. Eventually, a breakout occurs that is usually
followed by a significant fall in price.
What does it look like?
©2019 ForexSpringBoard
@knowledgeofstockmarket
Examples
©2019 ForexSpringBoard
@knowledgeofstockmarket
BULLISH
RECTANGLE
The bullish rectangle pattern is a temporary sideways
movement in an uptrend that usually appears at or
near an existing resistance level that the price can’t
surpass immediately.
What does it look like?
©2019 ForexSpringBoard
@knowledgeofstockmarket
Examples
©2019 ForexSpringBoard
@knowledgeofstockmarket
BEARISH
RECTANGLE
The bearish rectangle pattern is a temporary sideways
movement in a downtrend that usually appears at or
near an existing support level, which the price has a
hard time beating.
What does it look like?
©2019 ForexSpringBoard
@knowledgeofstockmarket
Examples
©2019 ForexSpringBoard
@knowledgeofstockmarket
