Chart Patterns

Advance Block

Advance Block is a three candlestick bearish reversal pattern that occurs during an uptrend.  The pattern consists of a succession of three white candlesticks. The first candle is long bodied with a relatively short wick. The second and third candles open within the body of the prior candle.  They

AB=CD Pattern Keeping it Simple

By Larry Pesavento and Leslie Jouflas History of the AB=CD Pattern In 1935 a book was published for sale to investors at an incredible price of $1500. That book was Profits in the Stock Market by H.M. Gartley. On page 249 Gartley describes a chart pattern, “Practical Use of Trend Lines”, which w

Abandoned Baby

An unusual reversal pattern on a Japanese Candlestick chart defined by a gap followed by a Doji, followed by another gap in the opposite direction. The shadows on the Doji have to completely gap above or below the shadows of the first and third day. See Bullish Abandoned Baby For a complete printabl

Dead Cat Bounce

The Dead Cat Bounce is a continuation pattern that looks in the beginning like a reversal pattern. It begins with a downmove followed by a significant retracement. The price fails to continue higher and falls back downwards, taking out the prior low.

Head and Shoulders Top

A bearish reversal pattern defined by three prominent highs with a middle peak, (the head) that is higher than the other peaks (the shoulders). The neckline is drawn beneath the two price lows that separate the head from the shoulders. Downward penetration of the neckline is typically considered th

Head and Shoulders Bottom

A bullish reversal pattern defined by three prominent lows with a middle low (the head) that is lower than the other lows (the shoulders). The neckline is drawn above the two price highs that separate the head from the shoulders. Upward penetration of the neckline is typically considered the buy en

Head and Shoulders

In technical analysis, a chart formation that resembles a human head and shoulders and is generally considered to be predictive of a price reversal. A head and shoulders top (which is considered predictive of a price decline) consists of a high price, a decline to a support level, a rally to a highe

Harami Japanese Candlestick

On a Japanese Candlestick chart, a two day reversal pattern that has a small body day completely contained within vertical range of the previous larger candle’s body. This formation suggest that the previous trend is coming to an end. The smaller the second candlesti

Harami Cross Japanese Candlestick

On a Japanese Candlestick chart, a two day reversal pattern that is the same as the Harami, except that the second day is a Doji. See Bullish Harami Cross

Hanging Man Japanese Candlestick

On a Japanese Candlestick chart, the Hanging Man candlestick occurs when a security moves significantly lower after the open, but rebounds to close well above the intraday low. The Hammer and Hanging Man are short body candles with little or no upper shad