Every pattern is a crowd changing its mind.

A chart pattern is not magic. It is thousands of people deciding, at roughly the same price, that they were wrong. These cards show the shape, what the crowd is doing inside it, and the one rule that keeps you out of trouble.

Bullish, price likely upBearish, price likely downNeutral, wait for the break

Chart patterns

Shapes that take days or weeks to form. The longer the build, the more it means.

Bull flag

bullish

A sharp run up, then a lazy drift down on thin volume. Buyers are resting, not leaving.

Buy the break above the flag. Target is the height of the pole, added to the breakout.

Bear flag

bearish

The mirror. A hard drop, then a hopeful bounce that never gets anywhere. Sellers are reloading.

Sell the break below the flag. Bounces into the top of the channel are the trap.

Head & shoulders

bearish

Three pushes up, the middle one highest. Each rally gets weaker. The trend is exhausted.

Confirmed only when price closes below the neckline. Target: head height, projected down.

Inverse head & shoulders

bullish

Three dips, the middle one deepest. Sellers tried three times and ran out. Bottoms are a process.

Buy the close above the neckline. A retest of the neckline from above is the safer entry.

Double top

bearish

Two visits to the same ceiling, twice rejected. The letter M. Nobody wants to pay more.

Confirm on a break below the middle low. Many fail: the second top must not exceed the first.

Double bottom

bullish

Two visits to the same floor, twice held. The letter W. Someone is buying every dip here.

Buy the break above the middle high. Target: the distance from floor to that high.

Ascending triangle

bullish

A flat ceiling and rising floors. Buyers step in higher each time. Pressure builds under a lid.

The lid usually breaks. Buy the close above resistance; don’t front-run it.

Cup and handle

bullish

A rounded bottom that takes its time, then a short pullback. Patience, then a small hesitation.

Buy the break above the rim. Handle should be shallow; a deep handle is a different pattern.

Symmetrical triangle

neutral

Lower highs and higher lows squeezing to a point. Volatility is being compressed. Direction unknown.

Don’t guess. Trade the break, whichever way it comes, with volume.

Rising wedge

bearish

Higher highs, but each one barely higher. Momentum shrinking while price still climbs. A tired uptrend.

Break below the lower line is the signal. Rising wedges after a long rally usually resolve down.

Candlesticks

Single candles and pairs. Fast signals, so they need context: where in the trend did this print?

Hammer

bullish

A long lower wick after a decline. Price was hammered down and bought back before the close.

Needs a down move before it. Confirm with the next candle closing above the hammer.

Inverted hammer

bullish

A long upper wick after a decline. Buyers tested higher and were pushed back, but they showed up.

Weaker than a hammer. Only meaningful if the next candle is green and closes above it.

Shooting star

bearish

The inverted hammer’s evil twin, at the top of a rally. Buyers rushed in and got sold into.

Needs an uptrend before it. Small body, wick at least twice the body. Confirm with a red close.

Hanging man

bearish

Looks like a hammer, but at the top. That lower wick says sellers can push it far now.

Weak alone. Treat it as a warning; act on a close below its low.

Doji

neutral

Open equals close. The market argued all day and nobody won. Indecision after a trend.

By itself, nothing. After a strong move, it says the move is pausing. Wait for the next candle.

Bullish engulfing

bullish

A green candle that swallows the red one before it. Buyers reversed the whole previous day.

Stronger with volume and at a support level. Stop goes below the engulfing candle’s low.

Bearish engulfing

bearish

A red candle that swallows the green before it. Whatever buyers built yesterday, gone.

Stronger at resistance. Stop goes above the engulfing candle’s high.

Morning star

bullish

Big red, tiny pause, big green. Three candles that say the sellers blinked.

The third candle should close past the midpoint of the first. Then it counts.

Evening star

bearish

Big green, tiny pause, big red. The top of a move, marked with a small, quiet candle.

Mirror of the morning star. Third candle closes below the first’s midpoint to confirm.

Three white soldiers

bullish

Three full green candles, each opening inside the last and closing higher. Steady, not frantic.

After a downtrend it’s a reversal. After a long uptrend, it’s often exhaustion.