NECTAR BOOKS

INTRO
THIS BOOK WILL BE A GREAT LEARNING
EXPERIENCE. YOU WILL UNDERSTAND
EVERYTHING ABOUT THE MOST DIVERSE
GRAPHIC PATTERNS AND HOW TO
UNDERSTAND AND DOMINATE THEM. READ AND
INTERPRET CALMLY TO ABSORB ALL THE
CONTENTS
AT THE END OF THE CHAPTERS THERE WILL BE
A SIMPLIFIED SUMMARY FOR YOU TO
REMEMBER EVERYTHING
AT THE END OF THE BOOK WILL BE ALL THE
PATTERNS U ED IN OUR VIDEOS SO YOU CAN
PRINT THEM AND BE A PROFESSIONAL TRADER.
BULLISH IS THE TERM WE BEARISH IS THE TERM WE
WILL USE TO DESIGNATE WILL USE TO DESIGNATE A
AN UPTREND, WHERE THE DOWNTREND, WHERE THE
CHART TENDS TO RISE CHART TENDS TO FALL
LINE PATTERNS SHOW A
BROAD VIEW OF THE MARKET,
WITH A LONG-TERM TRACK
RECORD
TIME FRAME: 1D - 4H - 1H
CANDLE PATTERNS SHOW AN
INSTANT VIEW OF THE MARKET,
THE SMALL, INSTANTANEOUS
MOVEMENTS OF INVESTORS AT
THE EXACT MOMENT
TIME FRAME: 1H - 15M - 5M

THE PERFECT TRADE IS WHEN YOU USE LINE PATTERNS WITH

CANDLE PATTERNS TO CONFIRM EACH OTHER
AT THE END OF THE BOOK,
ALL THE SHEETS WE USE IN
OUR VIDEOS ARE
AVAILABLE. MOST OF THEM
ARE FULLY EXPLAINED
WITHIN THE BOOK, BUT
THEY ARE GROUPED
TOGETHER AT THE END SO
YOU CAN PRINT AND USE
THEM IN YOUR DAY-TO-DAY,
JUST AS WE DO!

*AS WE WERE WRITING THE BOOK, WE USED THE TERM "STOCKS"

SEVERAL TIMES TO DEFINE THE ASSET ANALYZED IN THE CHART.
HOWEVER, WE ARE REMINDING YOU AGAIN THAT THE BOOK AND
PATTERNS CAN BE USED FOR STOCKS, CRYPTOCURRENCY, FOREX,
BINARY OPTIONS AND ALL OTHER ASSETS THAT HAVE CONSTANT
CHARTS AVAILABLE!
LINE PATTERNS 7
CANDLE PATERNS 52
MASTER PATTERNS 90
The Ascending Triangle is a BULLISH
‘continuation’ chart pattern that signifies a
breakout is likely where the triangle lines
converge. To draw this pattern, you need to
place a horizontal line (the resistance line)
on the resistance points and draw an
ascending line (the uptrend line) along the
support points.
ASCENDING
TRIANGLE
EXAMPLE
PENNANT
Pennants are represented by two lines that meet at a set point. They
are often formed after strong upward or downward moves where
traders pause and the price consolidates, before the trend continues
in the same direction.

Investors can use this pattern to help figure out how high the stock
will advance by taking the price at the bottom of the “flag pole” in the
initial pattern, then waiting until the price consolidates.

Once consolidated, the stock or index will break out at a slightly

higher level, and if you take the price at the bottom and add it to the
break out price, this will give an excellent indication of the future price
action for the pattern.
PENNANT
EXAMPLE
 FLAG
The flag stock chart pattern is shaped as a
sloping rectangle, where the support and
resistance lines run parallel until there is a
breakout. The breakout is usually the opposite
direction of the trendlines, meaning this is a
reversal pattern.
 FLAG
Like the pennant, the flag pattern is based on the market
price consolidation of a particular stock. The consolidation
will have a narrow range and happen just after a quick
upward move. Like the pennant, this pattern has a flag
“pole,” which can represent a vertical price fluctuation. These
fluctuations can be BEARISH and BULLISH, and if you know
how to spot these patterns is can give an investor a great
advantage.

If you think you spotted a flag to trade, the most important

factor is the rapid steep price trend. If the price action is
slowly moving up and down the form the flag, then you’ll be
better off looking elsewhere.
FLAG
EXAMPLE
BUMP AND
RUN
The bump and run reversal pattern appears after a fast and
large price hike due to excessive speculation. The pattern starts
with a lead-in phase in which the prices advance normally
without any signs of excessive speculation. The trend line
during the lead-in phase is moderately steep.

After prices reached their peak and start to decline towards the
trend line, the chart begins to show the right side of the bump.
Volume expands after the advance forms on the left side of the
bump. The run phase starts when prices reach the lead-in
trendline.
BUMP AND RUN
EXAMPLE
CUP AND
HANDLES
A cup and handle pattern occurs when the underlying
asset forms a chart that resembles a cup in the shape
of a U, and a handle represented by a slight downward
trend after the cup.

The shape is formed when there’s a price wave down,

which is then followed by a stabilization period,
followed again by a rally of approximately the same
size as the prior trend. This price action is what forms
the identifying cup and handle shape.
CUP AND
HANDLES
EXAMPLE
DOUBLE
BOTTOM
When using technical analysis, the double bottom
pattern indicates a long term or intermediate
reversal in the overall trend. It is defined by a price
drop in a stock or index, preceded by a rebound,
then another drop to roughly the same level as the
first drop, followed by a more significant rebound.
The double bottom pattern resembles the look of
a W, where the low is considered the support level.
DOUBLE
BOTTOM
The prerequisite for a double bottom
pattern is a significant DOWNWARD trend
that has been continuing .The first bottom
or trough of the trend should be the lowest
point of the current downward trend. The
first trough is followed by 10 to 20%
advance and, occasionally, a drawn-out
peak.
DOUBLE
BOTTOM
EXAMPLE
FALLING
WEDGE
The falling wedge pattern is a BULLSIH pattern that
begins wide at the top and continues to contract as
prices fall. As with the rising wedges, trading falling
wedge is one of the more challenging chart patterns
to trade. A falling wedge pattern signals a
continuation or a reversal depending on the
prevailing trend. However, in most cases, the pattern
indicates a reversal. In terms of its appearance, the
pattern is widest at the top and becomes narrower as
it moves downward, with tighter price action.
FALLING
WEDGE
EXAMPLE
INVERSE
HEAD AND
SHOULDERS
Another trend reversal chart is the inverse head and
shoulders, also known as a head and shoulders bottom stock
chart pattern. This technical analysis indicator is similar to the
standard head and shoulders pattern, but inverted.

The inverted head and shoulders pattern indicates a

movement towards a bullish trend and an excellent indicator
for traders who know how to spot the pattern, allowing them
to deploy commit capital on a bullish trade. Very similar in look
to that of a “triple bottom,” with the only exception being that
the “head” dips lower than the other two points giving it the
inverted head a shoulders formation.
INVERSE
HEAD AND
SHOULDERS
The pattern can be recognized when the price of
a stock falls to a trough and then rises, then falls
below the recent trough forming the head, and
then rises again. Finally, the price drops back but
not as deep as the previous time. Once the last
trough is made, the price action moves u, toward
the resistance level and breaks through.
INVERSE
HEAD AND
SHOULDERS
EXAMPLE
ROUNDING
BOTTOM
Rounding bottom pattern sometimes knows as a “saucer bottom”
pattern, is known for being able to predict upward trend. Very similar to
the cup and handle pattern, only without the bother of a temporary
downward trend that makes up the “handle.” The pattern is a reversal
pattern, representing a consolidation. That turns from bearish to bullish.

This rounding bottom pattern can be spotted at the end of depressingly

downward trends. Most of the time, this pattern indicates that the
downward trend, often caused by an excess of stock supplies, is coming
to an end as investors start to buy in at low price points reversing the
downward movement. Once this starts, it typically increases demand and
pushes up the stock price.
ROUNDING
BOTTOM
EXAMPLE
TRIPLE
BOTTOM
The triple bottom reversal pattern has three roughly equal lows and indicates
an opportunity to take a bullish position. Before the triple bottom occurs, the
bears are usually in control of the market, forming a prolonged downtrend.
The first bottom does not indicate anything out of the ordinary. Still, the second
and third bottoms show a change in direction where buyers (bulls) may push
the price action higher after the price breaks through the resistance.

As with other reversal patterns, there should be an existing trend – a current

downward trend in this case. Similar to the triple top pattern, the three
bottoms should be nearly equal in size and have sufficient space between
them. There should be a clear indication of a drop in volume leading into the
pattern and an increase in volume on the advance and at the resistance break.
Finally, the price should break through the resistance level, which is at the
highest point of the highs present between the bottoms. The price may test
the new support level it has found. The price target is calculated as the value
from the resistance break to the base points plus the resistance break.
TRIPLE
BOTTOM
EXAMPLE
BULLISH
REVISION
DESCENDING
TRIANGLE
Unlike ascending triangles, the descending triangle
represents a bearish market downtrend. The support
line is horizontal, and the resistance line is
descending, signifying the possibility of a downward
breakout.

The descending triangle pattern is a popular bearish

continuation pattern that is created by drawing a
horizontal line that connects low points and a trend
line that connects lower highs. Sometimes the
pattern occurs in a reverse during an upward trend
as well. It is one of the three important triangle
patterns defined by classical technical analysis
DESCENDING
TRIANGLE
EXAMPLE
DOUBLE TOP

The double top pattern is a twin-peak chart pattern

representing a bearish reversal in which the price
reaches the same levels twice with a small decline in
between the two peaks. A double top pattern usually
signals an intermediate or long-term change in trend.
When identifying the pattern, traders need to
understand that the peaks and troughs don’t have to
form a perfect M shape for the pattern to emerge.
DOUBLE
TOP
EXAMPLE
HEAD AND
SHOULDERS
A head and shoulders top pattern is one that has three
peaks and looks like a head and shoulders because the
two outside peaks are similar in height, yet shorter than
the peak in the middle. This pattern is typically
associated with a trend reversal from BULLISH to
bearish and is considered to be very reliable in its ability
to predict this type of stock action. This pattern is one of
several top patterns used in predicting the end of a
BULL RUN and the beginning of a DOWNTURN.
HEAD AND
SHOULDERS
This head and shoulders top pattern happens when a
stock rises to its peak and then drops back down to the
point preceding the move UPWARD. Then the stock will
once again move upward, but this time it will surpass the
prior spike and form what is called the “nose,” and then it
will once again move back down to the point preceding
the upswing. Once again, there will be an UPWARD tick
that reaches about the same level at the first spike with a
subsequent fall back DONWARD. This last downward tick
is usually significant because it is at this point where the
BULL turns to BEAR.
HEAD AND
SHOULDERS
EXAMPLE
PRICE
CHANNEL
The first line drawn in a price channel chart is called the
main trend line. To illustrate this line, an analyst should
recognize there need be two lows, in the case of a
BULLISH price channel, and identify two highs, in case
of a BEARISH price channel. The second line drawn in
the chart pattern is called the channel line. The channel
line requires highs or lows, the quantity of which
depends on the analyst – some use two points while
others use only one as the price movements runs
through the trading channel.
PRICE
CHANNEL
The first line drawn in a price channel chart is called the
main trend line. To illustrate this line, an analyst should
recognize there need be two lows, in the case of a
BULLISH price channel, and identify two highs, in case of
a BEARISH price channel. The second line drawn in the
chart pattern is called the channel line. The channel line
requires highs or lows, the quantity of which depends on
the analyst – some use two points while others use only
one as the price movements runs through the trading
channel.
PRICE
CHANNEL
EXAMPLE
TRIPLE TOP
REVERSAL
The triple top is a reversal chart pattern featuring three peaks at the same
level, making it different from the head and shoulders, which has a more
towering middle peak compared to the other two. A breakout from the
support follows the three peaks. The area of the peaks is the resistance level
in the pattern.

The triple top development includes a decline in overall volume with

occasional increases when the price reaches the high points. After the third
peak, the volume expands during the drop and at the support level.

Throughout this development, the pattern can take the shape of a double top
and other patterns as well. Traders also combine the triple top with other
indicators to confirm the BEARISH crossover after the final high.
TRIPLE
TOP
REVERSAL
EXAMPLE
REVISION
DOWNTREND
SYMMETRICAL
TRIANGLE

For symmetrical triangles, two trend lines

start to meet which signifies a breakout in
either direction. The support line is drawn
with an upward trend, and the resistance line
is drawn with a downward trend. Even
though the breakout can happen in either
direction, it often follows the general trend of
the market.
SYMMETRICAL
TRIANGLE

The symmetrical triangle is a chart that can

be recognized by its lower highs and higher
lows. When two trend lines converge with
the converging trend lines connecting and
containing several peaks and troughs, then
this pattern is indicated.
SYMMETRICAL
TRIANGLE
EXAMPLE
HAMMER

The hammer candlestick pattern is formed of a short body

with a long lower wick, and is found at the bottom of a
DOWNWARD trend.

A hammer shows that although there were selling pressures

during the day, ultimately a strong buying pressure drove the
price back UP. The colour of the body can vary, but green
hammers indicate a stronger bull market than red hammers.
HAMMER
EXAMPLE
INVERSE
HAMMER
A similarly BULLISH pattern is the inverted hammer. The only
difference being that the upper wick is long, while the lower
wick is short.

It indicates a buying pressure, followed by a selling pressure

that was not strong enough to drive the market price down.
The inverse hammer suggests that buyers will soon have
control of the market.
INVERSE
HAMMER
EXAMPLE
BULLISH
ENGULFING
The BULLISH engulfing pattern is formed of two
candlesticks. The first candle is a short red body that
is completely engulfed by a larger green candle.

Though the second day opens lower than the first,

the BULLISH market pushes the price up,
culminating in an obvious win for buyers.
BULLISH
ENGULFING
EXAMPLE
MORNING
STAR
The morning star candlestick pattern is considered a sign of
hope in a bleak market downtrend. It is a three-stick pattern:
one short-bodied candle between a long red and a long green.

Traditionally, the ‘star’ will have no overlap with the longer

bodies, as the market gaps both on open and close.
It signals that the selling pressure of the first day is subsiding,
and a bull market is on the horizon.
MORNING
EXAMPLE
PIERCING
LINE

The piercing line is also a two-stick pattern, made up of a long

red candle, followed by a long green candle.

There is usually a significant gap down between the first

candlestick’s closing price, and the green candlestick’s opening.
It indicates a strong buying pressure, as the price is pushed up
to or above the mid-price of the previous day.
PIERCING
LINE
EXAMPLE
THREE
WHITE
SOLDIERS
The three white soldiers pattern occurs over three days. It
consists of consecutive long green (or white) candles with
small wicks, which open and close progressively higher than
the previous day.

It is a very strong bullish signal that occurs after a downtrend,

and shows a steady advance of buying pressure.
THREE
WHITE
SOLDIERS
EXAMPLE
RISING
THREE
METHODS
The opposite is true for the bullish pattern, called the ‘rising
three methods’ candlestick pattern. It comprises of three short
reds sandwiched within the range of two long greens. The
pattern shows traders that, despite some selling pressure,
buyers are retaining control of the market.
RISING
THREE
METHODS
EXAMPLE
REVISION
UPTREND
HANGING
MAN

The hanging man is the bearish equivalent of a hammer; it has

the same shape but forms at the end of an uptrend.

It indicates that there was a significant sell-off during the day,

but that buyers were able to push the price up again. The large
sell-off is often seen as an indication that the bulls are losing
control of the market.
HANGING
MAN
EXAMPLE
SHOOTING
STAR

The shooting star is the same shape as the inverted hammer,

but is formed in an uptrend: it has a small lower body, and a
long upper wick.

Usually, the market will gap slightly higher on opening and rally
to an intra-day high before closing at a price just above the
open – like a star falling to the ground.
SHOOTING
STAR
EXAMPLE
BEARISH
ENGULFING

A bearish engulfing pattern occurs at the end of an uptrend.

The first candle has a small green body that is engulfed by a
subsequent long red candle.

It signifies a peak or slowdown of price movement, and is a

sign of an impending market downturn. The lower the second
candle goes, the more significant the trend is likely to be.
BEARISH
ENGULFING
EXAMPLE
EVENING
STAR

The evening star is a three-candlestick pattern that is the

equivalent of the bullish morning star. It is formed of a short
candle sandwiched between a long green candle and a large
red candlestick.

It indicates the reversal of an uptrend, and is particularly strong

when the third candlestick erases the gains of the first candle.
EVENING
STAR
EXAMPLE
THREE
BLACK
CROWS
The three black crows candlestick pattern comprises of three
consecutive long red candles with short or non-existent wicks.
Each session opens at a similar price to the previous day, but
selling pressures push the price lower and lower with each
close.

Traders interpret this pattern as the start of a bearish

downtrend, as the sellers have overtaken the buyers during
three successive trading days.
THREE
BLACK
CROWS
EXAMPLE
DARK
CLOUD
COVER
The dark cloud cover candlestick pattern indicates a bearish
reversal – a black cloud over the previous day’s optimism. It
comprises two candlesticks: a red candlestick which opens
above the previous green body, and closes below its midpoint.

It signals that the bears have taken over the session, pushing
the price sharply lower. If the wicks of the candles are short it
suggests that the downtrend was extremely decisive.
DARK
CLOUD
COVER
EXAMPLE
DOJI

When a market’s open and close are almost at the same price
point, the candlestick resembles a cross or plus sign – traders
should look out for a short to non-existent body, with wicks of
varying length.

This doji’s pattern conveys a struggle between buyers and

sellers that results in no net gain for either side. Alone a doji is
neutral signal, but it can be found in reversal patterns such as
the bullish morning star and bearish evening star.
DOJI
EXAMPLE
SPINNING
TOP

The spinning top candlestick pattern has a short body centred

between wicks of equal length. The pattern indicates
indecision in the market, resulting in no meaningful change in
price: the bulls sent the price higher, while the bears pushed it
low again. Spinning tops are often interpreted as a period of
consolidation, or rest, following a significant uptrend or
downtrend.
On its own the spinning top is a relatively benign signal, but
they can be interpreted as a sign of things to come as it
signifies that the current market pressure is losing control.
SPINNING
TOP
EXAMPLE
FALLING
THREE
METHODS
Three-method formation patterns are used to predict the
continuation of a current trend, be it bearish or bullish.

The bearish pattern is called the ‘falling three methods’. It is

formed of a long red body, followed by three small green
bodies, and another red body – the green candles are all
contained within the range of the bearish bodies. It shows
traders that the bulls do not have enough strength to reverse
the trend.
FALLING
THREE
METHODS
EXAMPLE
REVISION
DOWNTREND
I HOPE YOU ENJOYED IT,
GREETINGS FROM