# Patterns Cheat Sheet

Quick recognition rules for candlestick and chart patterns. Always confirm with **next candle** and **context** (trend, level).

***

## Single Candlestick Patterns

| Pattern             | Shape                                 | Where                   | Bias                            | Stop             |
| ------------------- | ------------------------------------- | ----------------------- | ------------------------------- | ---------------- |
| **Doji**            | Tiny body, wicks vary                 | Any (best at S/R)       | Neutral / reversal if confirmed | Beyond pattern   |
| **Hammer**          | Small body at top, long lower wick    | After decline, support  | Bullish                         | Below hammer low |
| **Hanging Man**     | Same as hammer                        | After rally, resistance | Bearish                         | Above high       |
| **Inverted Hammer** | Small body at bottom, long upper wick | After decline, support  | Bullish                         | Below low        |
| **Shooting Star**   | Same as inv. hammer                   | After rally, resistance | Bearish                         | Above high       |
| **Marubozu**        | Full body, no/small wicks             | Trend or breakout       | Direction of body               | Beyond pattern   |

**Recognition:** Hammer = long lower wick, body at top. Shooting Star = long upper wick, body at bottom, **after uptrend**.

***

## Two Candlestick Patterns

| Pattern               | Candle 1 | Candle 2                                               | Bias    |
| --------------------- | -------- | ------------------------------------------------------ | ------- |
| **Bullish Engulfing** | Bearish  | Bullish, body **engulfs** 1                            | Bullish |
| **Bearish Engulfing** | Bullish  | Bearish, body **engulfs** 1                            | Bearish |
| **Piercing Line**     | Bearish  | Bullish, opens lower, closes **inside** 1 (above mid)  | Bullish |
| **Dark Cloud Cover**  | Bullish  | Bearish, opens higher, closes **inside** 1 (below mid) | Bearish |
| **Tweezer Top**       | Any      | Same **high**, rejection                               | Bearish |
| **Tweezer Bottom**    | Any      | Same **low**, hold                                     | Bullish |

**Recognition:** Engulfing = body of 2 completely contains body of 1. Tweezer = same extreme (high or low).

***

## Three Candlestick Patterns

| Pattern                  | Candles                                                | Bias                |
| ------------------------ | ------------------------------------------------------ | ------------------- |
| **Morning Star**         | Bearish + **small** + Bullish (3 closes into 1’s body) | Bullish             |
| **Evening Star**         | Bullish + **small** + Bearish (3 closes into 1’s body) | Bearish             |
| **Three White Soldiers** | Three bullish, each higher close                       | Bullish             |
| **Three Black Crows**    | Three bearish, each lower close                        | Bearish             |
| **Inside Bar**           | Current high < prior high, current low > prior low     | Breakout (dir. TBD) |
| **Outside Bar**          | Current range **engulfs** prior range                  | Direction of close  |

**Recognition:** Star = big, small, big (opposite). Inside = bar fully inside previous. Outside = previous bar fully inside current.

***

## Reversal Chart Patterns

| Pattern               | Break                                     | Measured move                      | Stop             |
| --------------------- | ----------------------------------------- | ---------------------------------- | ---------------- |
| **Head & Shoulders**  | Below **neckline**                        | Head to neckline, project **down** | Above RS or head |
| **Inverse H\&S**      | Above **neckline**                        | Head to neckline, project **up**   | Below RS or head |
| **Double Top**        | Below **neckline** (low between tops)     | Top to neckline, project down      | Above tops       |
| **Double Bottom**     | Above **neckline** (high between bottoms) | Bottom to neckline, project up     | Below bottoms    |
| **Triple Top/Bottom** | Beyond neckline                           | Same idea as double                | Beyond pattern   |
| **Rounded Top**       | Below base of dome                        | —                                  | Above dome       |
| **Rounded Bottom**    | Above rim of saucer                       | —                                  | Below saucer     |

**Recognition:** H\&S = 3 peaks, middle highest. Double = 2 equal highs (top) or lows (bottom). Neckline = line connecting the swing points between peaks/troughs.

***

## Continuation Chart Patterns

| Pattern                  | Prior trend      | Break                     | Stop             | Target               |
| ------------------------ | ---------------- | ------------------------- | ---------------- | -------------------- |
| **Bull Flag**            | Up               | Above flag upper line     | Below flag low   | Flagpole length up   |
| **Bear Flag**            | Down             | Below flag lower line     | Above flag high  | Flagpole length down |
| **Pennant**              | Any (sharp move) | Out of triangle           | Opposite side    | Flagpole length      |
| **Ascending Triangle**   | Often up         | Above **flat** resistance | Below triangle   | Height up            |
| **Descending Triangle**  | Often down       | Below **flat** support    | Above triangle   | Height down          |
| **Symmetrical Triangle** | Any              | Either direction          | Opposite side    | Height in break dir. |
| **Rectangle**            | Any              | Above/below range         | Inside rectangle | Height in break dir. |
| **Cup and Handle**       | After decline    | Above **handle** (rim)    | Below handle     | Cup depth up         |

**Recognition:** Flag = sharp move (pole) + parallel or sloping channel. Triangle = converging lines. Cup = U-shape; handle = small pullback near top.

***

## Quick Rules

1. **Confirm:** Prefer **close** beyond level or **next candle** in your direction.
2. **Volume:** Breakouts often need **above-average** volume.
3. **Stop:** Always beyond the **pattern** or **level**; never arbitrary.
4. **Context:** Reversal patterns at end of move; continuation in middle of trend.
5. **False breakouts:** Wait for **close** or **retest**; use buffer on stop.

***

*See full detail:* [*03 — Candlestick*](https://github.com/nishchalnishant/TradingOverview/blob/main/technical-analysis/stock-market-analysis/technical-analysis/handbook/03-candlestick-analysis/README.md) *|* [*04 — Chart Patterns*](https://github.com/nishchalnishant/TradingOverview/blob/main/technical-analysis/stock-market-analysis/technical-analysis/handbook/04-chart-patterns/README.md)*.*


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