Trading Flashcards & Visual Guide
1. Key Candlestick Patterns
These are some of the most common and powerful candlestick patterns used in trading. Study both the name
and the shape carefully.
- Hammer: Bullish reversal at the bottom of a downtrend
- Shooting Star: Bearish reversal at the top of an uptrend
- Bullish Engulfing: Green candle fully engulfs previous red candle
- Bearish Engulfing: Red candle fully engulfs previous green candle
- Doji: Indecision; open and close are nearly the same
2. Trend Structure
A trend is the general direction the market is moving. Here are visual examples of uptrend and downtrend.
- Uptrend: Higher Highs and Higher Lows
- Downtrend: Lower Highs and Lower Lows
3. Support & Resistance
These zones act like price floors and ceilings. Here's how they look on a chart:
- Support: Where price often bounces upward
- Resistance: Where price often reverses downward