Chart Patterns Cheat Sheet (Plus Bonus)

Traders that use technical analysis often use chart patterns to identify potentially profitable trading opportunities.

This cheat sheet will help you remember the common chart patterns that traders use.

It helps to print it out and tape it to your monitor or put in your notebook.

That will allow you to reference it while you're trading or when you're testing new trading strategies.

This post will give you the downloadable PDF, 2 bonus chart patterns, and most importantly…the best way to find out if these chart patterns actually work.

Here's what the downloadable PDF looks like.

Chart Patterns PDF (Free Download)

This handy PDF will help you remember these chart patterns. Click the button to download the PDF.

Bonus Chart Patterns

Here are 2 bonus chart patterns that you probably haven't seen on other lists. It's included in the PDF above, but we have provided a more detailed description below.

Batman Chart Pattern

This is a variation of the double top/bottom. The only difference with a Batman is that there is a period of consolidation between the tops/bottoms.

When the market consolidates like that, it shows that the market tried to accumulate and move higher, but was not able to.

So if the second peak shows a sharp rejection of the previous high/low, then there's a good chance that price will reverse. Here's a bearish example.

You can get a detailed description of the Batman chart pattern here.

3 Drives Chart Pattern

A 3 Drives pattern consists of 3 higher highs, or 3 lower lows, followed by a reversal.

In this chart pattern, traders try to push price in one direction 3 times, but if there isn't enough momentum, the push will fail and the reversal tends to be swift.

To get a more detailed description of the 3 Drives pattern read this.

Final Thoughts on Chart Patterns

Remember that chart patterns cannot be traded in a vacuum.

Not every instance of a chart pattern will guarantee a good trading opportunity.

But how do you know which chart patterns are high quality and which ones are low quality? How do you know if a chart pattern will work with your trading personality?

The best way to do this is to test chart patterns until you understand their probabilities and profitability. This guide will show you how to get started with the testing process, so you can find out what to realistically expect from the chart patterns above.

 

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