Three Outside Up & Down Candlestick Pattern
The Three Outside Up & Down candlestick patterns are 3-bar opposite reversal patterns. They are made of one up or down candle and then 2 candles of the opposite color. … Read more
Chart Patterns
Did you know there are about 100 different types of chart patterns?
They come in different shapes and sizes but they all share something in common : they are a key part of technical analysis and to be able to use them you first need to recognize them.
Every chart pattern detailed with their performance and reliability stats
Below you’ll find the ultimate database with every single chart pattern. You’ll find detailed articles for each going into detailed explanation, giving you examples and data for each pattern. No more doubt about what makes a specific pattern and how well it works.
Moreover, this extensive cheat sheet will definitely give you an edge and let you understand and recognize every pattern. Plus at PatternsWizard, our absolute focus is to bring you data-driven performance statistics. So for most patterns (articles below) you’ll find data about each pattern’s performance statistics and reliability (how often they confirm, reach the target or stop, how often they appear, …) to adjust your trading strategy of financial markets.
What are chart patterns?
Chart patterns are unique formations formed by changes in the price of securities on the price chart. They are the basis of technical analysis.
There are several types of patterns: classic patterns, candlestick patterns and harmonic patterns. As a result, each type has its own specificities. Identify patterns by lines that connect common price points (such as closing prices or high or low points) within a specific time period.
Technical analysts and chart experts seek to identify patterns to predict the future direction of security prices. These patterns can be as simple as a trend line or as complex as a double head and shoulders pattern.
What are the three big categories of chart patterns?
There are three main categories that classify the chart patterns:
- Candlestick chart patterns : they are aggregates of candlesticks (usually 1 to 5). Some famous ones are the harami, stick sandwich, advance block.
- Classic / traditional / common patterns : they often represent some mathematical shapes like symmetrical triangles, bullish flag patterns, head and shoulders or the wedge pattern.
- Harmonic patterns : they are created with several legs linked together with mathematical ratios (Fibonacci levels) for price levels.
Each of these patterns have very strict requirements. To help you easily get your hands on each pattern we detailed them in their own article with everything you should know.
Of course, you can use these patterns in conjunction together, with other indicators or locations (resistance levels or resistance lines) to enhance your hints about future price movements before you take a trade.
How can they help you enhance your trading strategy?
Depending on the pattern (each pattern can tell a different story), they can be a hint for :
- Reversal patterns : it predicts price will reverse and move in the opposite direction. These reversal chart patterns help spot trend reversals.
- Continuation patterns : it predicts price will continue its move in the same direction.
Regardless of the pattern(s) you’d like to hunt and trade, you’ll need a reliable source to chart your markets. TradingView is the best solution for you! As you may have noticed, most of our charts on the site are taken from charts created on TradingView. Click here to check TradingView for free now!
Want to go into the details of a specific pattern? You’re at the right place!
These patterns often have very imaginative names. Feel free to discover the detailed article for each chart pattern right below :
Three-Line Strike Pattern: Complete Guide [2022]
Recognizing patterns is a necessary aspect of technical analysis. Traders should make sure that if they have a moment of doubt, they can act on a situation if they have … Read more
Three Inside Up & Down Pattern: Complete Guide
To interpret candlestick patterns, you need to look for particular formations. These candlestick formations assist traders know how the price is likely to behave next. In this article, we will … Read more
Separating Lines Candlestick Pattern: Definition
Traders have applied candlestick patterns in analyzing the movement of a market. One of such patterns is the separating lines candlestick pattern. The pattern comes up when there’s an uptrend … Read more
Hikkake Candlestick Pattern: Full Guide
Trading price action usually brings about surprise and excitement at the same time. Price is commonly used as a base for any technical analysis, and the hikkake trading strategy takes … Read more
Falling & Rising Three Methods Patterns
Candlestick patterns have become the preferred method of charting for a lot of traders. Their colorful bodies make it simple to spot market action and patterns that could hold predictive … Read more
Cypher Harmonic Pattern: Definition & Strategy
The cypher pattern trading strategy teaches traders how to correctly trade and draw the cypher pattern. The cypher harmonic pattern can be used on its own and provide traders a … Read more
Crab & Deep Crab Harmonic Pattern: The ultimate guide [2022]
Harmonic trading is a kind of technical analysis generally used across futures, stocks and forex. Harmonic trading makes use of particular price patterns which are subject to alignment of specific … Read more
Mat Hold Candlestick Pattern: Complete Guide
The Mat Hold candlestick pattern is a 5-candle pattern It can be bullish or bearish depending on its formation For the bullish pattern, there is a tall green candle, 3 … Read more
Gravestone Doji Candlestick Pattern: Full Guide
The Gravestone Doji Candlestick Pattern is one of the fabulous and versatile patterns in trading. It an interesting bearish trend reversal candlestick pattern. Some traders, use this pattern in their … Read more