Day - 2

Charting Patterns
Charting Patterns are the combination of
multiple types of candles.
It helps a Trader to figure out entry and exit
point in stock.
It also helps to suggest what prices might be
next, based on what they had done in the past
According to market trend there is two types of
charting patterns,
1) Bullish charting patterns
2) Bearish charting patterns
Bullish charting where stocks are mostly in uptrend,
downtrend, or sideways trend and bulls are more
active and buying should be done on bullish charting
patterns.

Bullish patterns are either reversal or continuation

patterns, with the help of trend we can trade all
patterns.

Bullish patterns can be with higher high and higher

low or it can be with reversal of downtrend.
Bullish Charting
Patterns
 DOUBLE BOTTOM PATTERN

Minimum Target should be the

target of AB A'

A B' Buy Conservative

C
B
Length of AB Buy Aggressive
 Double bottom is Bullish reversal charting
pattern, When price touches two times to the
support and it sometimes looks like W.

Double bottom formed at the end of downtrend

and indicate potential upward move in stock.

Double bottom pattern always forms after

a major downtrend in a particular stock.

Double bottom pattern occurs at any time

frames.
Entry on double bottom
When double bottom forms aggressive traders
can enter at C point also on reversal and target is
length of AB.
Conservative buyers can enter only after neckline
breakout.
Min 15-20 days, Time frame requires to
complete double bottom on daily charts.
stoploss for double bottom reversal is support of
reversal candle or its low, and neckline breakout
stoploss will be nearest support or breakout level.
TRIPLE BOTTOM PATTERN
F'
Min Target Height
of DE

B D F Buy Conservative
E'

Height of DE

A C E
Buy Aggressive
Triple Bottom Pattern
This is reversal pattern and has 3 bottom near same
levels, looks like sideway channel.

First bottom in this formed when price of stock

declines and bounce back from specific support
levels and sellers are also active at resistance.

Triple bottom is reliable pattern where aggressive

buyers can enter on every reversal from support
and sellers can sell at resistance
conservative buyers can enter after the neckline
breakout in securities.

stoploss for both reversal and neckline breakout

trading should be nearest support of stock.

Minimum 25-30 days requires for the formation of

triple bottom and sometimes it is also considered
as sideways channel.
INVERSE HEAD AND
SHOULDER
 Minimum Target =
Height of Head

Buy after the upward breakout

with high Vol.

Return
Move

Left Right
shoulder shoulder

Head Height
of the head
Inverse Head and Shoulder Pattern
Inverse head and shoulder appear in downtrend
stock and indicates reversal from bearish to
bullish trend.

Inverse head and shoulder pattern is sign of

bullish market and appears in all time frames.

Inverse head and shoulder have two shoulder,

left and right, both are about same height and
head has more height than shoulder.
Entry in this pattern is after neckline breakout
and target is height of head and stoploss for this
pattern is height of right shoulder.

Minimum 30-40 days requires for formation of

inverse head and shoulder in swing (day chart).

Many times, inverse head and shoulder shows

false breakout or retest from support, so traders'
entry on neckline breakout above 1% of neckline
considered as safe.
ASCENDING
TRAINGLE
Ascending Triangle Pattern
Ascending triangle is continuation pattern occurs
in uptrend and downtrend also.

Ascending triangle has same resistance but

support in the stock will go up on every reversal.

In ascending triangle minimum two swing lows and

two swing highs are necessary but when it forms
with many swing lows and highs with price
move in same triangle lead to stronger breakout.
Minimum 25-30 days requires to complete ascending
triangle.
conservative traders can enter on neckline breakout
1% above resistance and stoploss is below last triangle
support (low).

Aggressive buyers can enter on every reversal of

ascending triangle with swing low stoploss.

In ascending triangle neckline breakout do pyramiding

on closing basis and target is height of target.
 BULLISH
RECTANGLE
Bullish rectangle mostly forms during uptrend and it
is continuation pattern where price pauses and make
a channel.
Bullish rectangle offers a buying opportunity.
In Bullish rectangle aggressive traders can enter on
reversal from support and book their profits partially
on resistance but for conservative traders entry
should be after neckline breakout.
Minimum target for bullish rectangle is range
between support and resistance after neckline
breakout.
BULLISH FLAG
Bullish flag is continuation pattern found during
strong uptrend and reassembles like flag on a pole.
In this flag is formed within two parallel line and
shows strong upside momentum after neckline
breakout of flag (Consolidation phase).
Stoploss should below bottom of Consolidation
pattern.
Traders can enter in this after only neckline
breakout in flag for minimum target height of pole.
Always manage Risk to Reward Ratio 1:2 or 1:3 for
Bullish flag.
ROUNDING
BOTTOM
A Rounding bottom is a bullish trend reversal pattern
that occurs at the end of end of downtrend.
Rounding bottom pattern requires more time for
formation and traders can enter after neckline
breakout.
Rounding bottom target is distance between lowest
point of rounding bottom and neckline of round.
Always keep stoploss to the nearest support (low) of
Rounding bottom or previous swing low.
CUP AND HANDLE
 Cup And Handle Pattern
When Rounding bottom pattern fails at resistance it
has possibility to form cup and handle pattern.

It is followed by bullish price move in upward

direction and found in all time frames.

The target for cup and handle pattern after

breakout, first it will go up to height of handle and
secondly it will go up to height of cup.
Stoploss for cup and handle pattern is nearest
swing low (support).

Cup and handle pattern is one of the most

important pattern to identify multibagger stock.
BULLISH PENNATE
Bullish pennate is continuation pattern of upward
trend.
It occurs at different time frame .
Traders can buy securities after neckline breakout in
the Bullish Pennate.

Target for Bullish Pennate pattern is height of

Pennate and stoploss is previous support for Pennate.
FALLING WAGE
Falling wage is Bullish reversal pattern appears
when prices in the swing low of a downtrend
comes down in a parallel channel which further.

The falling wage pattern is tradable once the price

breaks resistance with strong Bullish candle and
volume with stoploss os previous support.
THANK YOU..