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DISCLAIMER
THE INFORMATION PROVIDED IN THIS BOOK IS FOR EDUCATIONAL
PURPOSES ONLY. IT IS NOT INTENDED TO BE A SOURCE OF FINANCIAL OR
LEGAL ADVICE. MAKING ADJUSTMENTS TO A FINANCIAL STRATEGY OR
PLAN SHOULD ONLY BE UNDERTAKEN AFTER CONSULTING WITH A
PROFESSIONAL, THE PUBLISHER AND THE AUTHOR MAKE NO GUARANTEE
OF FINANCIAL RESULTS OBTAINED BY USING THIS BOOK.

Author : Ramesh Gurjar

Published By : The Digital sender
www.thedigitalsender.com
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Mo : 97370 92781

This Ebook is protected by copyright law and is the intellectual property of

[author/publisher]. Any unauthorized use, reproduction, or distribution of the Ebook,
in whole or in part, is strictly prohibited and may result in civil and criminal
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 Index

TYPES OF CANDLESTICKS
1. Hammer
2. Inverted hammer
3. Gravestone doji
4. Dragonfly doji
5. Spinning top
6. Morning star
7. Evening star
8. Shooting star
9. Hanging man
10. Bullish engulfing
11. Bearish engulfing
12. Tweezer bottom
13. Tweezer top
14. Bullish inside bar
15. Bearish inside bar
16. Bullish harami
17. Bearish harami
18. Three white soldiers
19. Three black crows
20. Dark cloud cover
21. Pin bar
22. Bullish piercing
23. Bullish kicker
24. Bearish kicker
25. Three outside up
26. Three outside down
27. Three inside up
28. Three inside down
29. Bullish marubozu
30. Bearish marubozu

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 TYPES OF CHART PATTERNS

1. Double top
2. Double bottom
3. Triple top
4. Triple bottom
5. Bullish pennant
6. Bearish pennant
7. Bullish flag
8. Bearish flag
9. Bullish rectangle
10. Bearish rectangle
11. Rising wedge
12. Falling wedge
13. Head and shoulders
14. Inverted head and shoulders
15. Symmetrical triangle
16. Broadening triangle
17. Ascending triangle
18. Descending triangle
19. Cup and handle
20. Rounding bottom
21. Diamond top
22. Diamond bottom

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 Hammer

Hammer candlestick is a Japanese candlestick pattern used for market decision

making. This is a bullish reversal pattern that usually appears after a downtrend. A
hammer candlestick has a smaller body and a smaller wick at the top. The body is
below the upper shadow. If we look at the candlestick and call it hammer, then the
reason is that its shape is like a hammer.

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 Inverted Hammer

The inverted hammer candlestick is a single candlestick pattern that can provide
valuable information about potential trend reversals in financial markets. It is
typically found at the bottom of a downtrend and signifies a possible bullish
reversal.The pattern consists of a small body near the top of the candlestick and a
long lower shadow, resembling an upside-down hammer. The upper shadow, if
present, is usually very small or non-existent. The small body indicates that there
was little price movement between the open and close of the period.
The significance of the inverted hammer lies in its long lower shadow, which
suggests that sellers pushed the price significantly lower during the trading
period. However, the strong buying pressure seen towards the end of the period
caused the price to recover and close near its opening level or even higher.

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 Gravestone doji

Gravestone doji candlestick is a bearish reversal pattern that usually appears after
an uptrend. In this pattern, the size of the body is small and the upper shadow is
small. The body is above the upper shadow.

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 Dragonfly doji

Dragonfly doji candlestick is a bullish reversal pattern that usually appears after a
downtrend. In this pattern, the body size is small and the bottom shadow is small.
The body is above the upper shadow.

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 Spinning top

Spinning top candlestick is a neutral pattern that occurs between the top of the
body and the bottom of the shadow. In this pattern the size of the body is very
small and the shadow above and below the body is equal or slightly increased.

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 Morning Star

Morning star candlestick pattern is a bullish reversal pattern that occurs after a
downtrend. This pattern is preceded by a long black (or red) candlestick followed
by a small-bodied candlestick that occurs in a lower price range. This is followed
by a long white (or green) candlestick which rises above the body of the first
candlestick and closes rising above it.

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 Evening star

Evening star candlestick pattern is a bearish reversal pattern that occurs after an
uptrend. This pattern is preceded by a long white (or green) candlestick followed
by a small-bodied candlestick that occurs in a lower price range. This is followed
by a long black (or red) candlestick that rises above the body of the first
candlestick and closes rising below it.

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 Shooting Star

Shooting star candlestick pattern is a bearish reversal pattern that occurs after an
uptrend. In this pattern, a long white (or green) candlestick appears first, followed
by a small-bodied candlestick that is on the upper side. Next, a long upper shadow
extending at least two bars back is generated above this small-bodied
candlestick. The reason behind the name shooting star is that the shape of the
long upper shadow makes it look like a shooting star.

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 Hanging Man

Hanging man candlestick pattern is also a bearish reversal pattern that occurs
after an uptrend. In this pattern, a long white (or green) candlestick appears first,
followed by a small-bodied candlestick that is on the downside. This small-bodied
candlestick has a long lower shadow that extends at least two bars back.

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 Bullish Engulfing

Bullish engulfing candlestick pattern is a bullish reversal pattern that occurs after
a downtrend. In this pattern a long black (or red) candlestick comes first followed
by a long white (or green) candlestick. The body of the second candlestick engulfs
the body of the first candlestick, ie covers it completely.

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 Bearish Engulfing

Bearish engulfing candlestick pattern is a bearish reversal pattern that occurs

after an uptrend. In this pattern a long white (or green) candlestick comes first
followed by a long black (or red) candlestick. The body of the second candlestick
engulfs the body of the first candlestick, ie covers it completely.

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 Tweezer Top

The Tweezer top candlestick pattern is a bearish reversal pattern that occurs after
an uptrend. In this pattern two candlesticks are together. The first candlestick is
long and bullish while the second candlestick is short and bearish. The length of
the upper shadows of both the candlesticks are approximately the same, hence it
is called Tweezer top.

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 Tweezer Bottom

The Tweezer bottom candlestick pattern is a bullish reversal pattern that occurs
after a downtrend. In this pattern two candlesticks are together. The first
candlestick is long and bearish while the second candlestick is short and bullish.
The length of the lower shadows of both the candlesticks are approximately the
same, hence it is called Tweezer bottom.

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 Bullish Inside Bar

Bullish inside bar candlestick pattern is a continuation pattern that occurs in the
middle of an uptrend. In this pattern, a small candlestick (inside bar) is in the
middle of a long candlestick. A large bullish candlestick is followed by a small
candlestick (inside bar) the next day which is inside the range of the first
candlestick.

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 Bearish Inside Bar

Bearish inside bar candlestick pattern is a bearish continuation pattern that

occurs after an uptrend. In this pattern two candlesticks are together. The first
candlestick is long and bullish while the second candlestick is short and bearish.
The range between the high and low range of both the candlesticks is less than
the range of the first candlestick, hence it is called inside bar.

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 Bullish Harami

Bullish harami candlestick pattern is a reversal pattern that occurs after a

downtrend. There are two candlesticks in this pattern. The first candlestick is long
and bearish while the second candlestick is short and bullish. The body of the
second candlestick is inside the body of the first candlestick. There is no gap
between two candlesticks in this pattern, hence it is called Bullish harami.

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 Bearish Harami

Bearish Harami candlestick pattern is a bearish reversal pattern that appears after
an uptrend. In this pattern, a large bullish candlestick is followed by a small
bearish candlestick which engulfs the larger bullish candlestick.

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 Three Black Crows

The Three black crows candlestick pattern is a bearish reversal pattern that
occurs after an uptrend. In this pattern, three bearish candles come together,
which appear simultaneously on the daily chart. There is also a downward gap in
this pattern.

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 Three White Soldiers

The three white soldiers candlestick pattern is a bullish reversal pattern that
occurs after a downtrend. In this pattern, three white or green candles come
together, which appear together on the daily chart. There is also an upward gap in
this pattern.

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 Dark Cloud Cover

Dark Cloud Cover is a bearish reversal candlestick pattern that signals a bearish
trend in the presence of an uptrend coming from higher levels. In this pattern,
after a bullish candlestick, there is a small gap and then a bearish candlestick that
partially or completely overlaps the previous candlestick. This pattern is a normal
reversal pattern.

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 Pin Bar

Pin bar candlestick pattern is a reversal pattern which is very popular in price
action trading. This pattern consists of a single candlestick with small wicks
above and below it. This candlestick is called pin bar. In this pattern the wicks
above and below the pin bar are much smaller than the body of the candlestick.

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 Piercing Bullish

This is a Bullish reversal pattern which reverses the downtrend of the market.
When the market is in a downtrend and a piercing bullish candlestick is formed, it
is a strong reversal signal. In this pattern, the first candlestick is very bearish and
the second candlestick forms an open and uptrend. In this pattern, the high of the
share price of the second day should be at least 50% above the level of the first
day. This indicates that the mood of the market is changing and now the Bullish
trend is about to come.

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 Bullish Kicker

The Bullish Kicker candlestick pattern is a bullish reversal pattern that occurs in
an uptrend. The first candlestick in this pattern is a short and bearish candle that
opens up and gap down. The second candlestick is a long and bullish candle that
extends to the length of the first candlestick. There is a gap between both the
candlesticks.

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 Bearish Kicker

The Bearish Kicker candlestick pattern is also a reversal pattern that occurs in a
downtrend. The first candlestick in this pattern is a long and bullish candle that
opens up and gap up. The second candlestick is a short and bearish candle that
extends to the length of the first candlestick. There is a gap between both the
candlesticks.

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 Three Outside Up

The Three Outside Up candlestick pattern is a bullish reversal pattern that occurs
in a downtrend. The first candlestick in this pattern is a long bearish candle which
indicates a downtrend. The second candlestick is a small bullish candle that
opens above the first candlestick. The third candlestick is again a long bullish
candle which extends above the first candlestick and completely covers the
second candlestick. There is a gap between all the three candlesticks.

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 Three Outside Down

The Three Outside Down Candlestick pattern is a bearish reversal pattern that
occurs in an uptrend. The first candlestick in this pattern is a long and bullish
candle, indicating a strong uptrend. The second candlestick is also a bullish
candle but closes after going above the first candlestick. The third candlestick is a
bearish candle that opens above the second candlestick and initiates a
downtrend.

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 Three Inside Up

The Three Inside Up candlestick pattern is a bullish reversal pattern that occurs in
a downtrend. The first candlestick in this pattern is a bearish candle which opens
up and gap down. The second candlestick is a bullish candle which opens inside
the range of the first candlestick and closes above its range. The third candlestick
is again a bullish candle which opens above the range of the second candlestick
and closes above its range.

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 Three Inside Down

The Three Inside Down candlestick pattern is a bearish reversal pattern that
occurs after an uptrend. There are three candlesticks in this pattern. The first
candlestick is long and bullish while the second and third candlesticks are short
and bearish. The length of the upper and lower shadows of the second and third
candlesticks is short while the body is short, hence it is called Three Inside Down.

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 Bullish Marubozu

The Bullish Marubozu candlestick pattern is a strong bullish pattern that occurs
when the market is in an unstoppable uptrend. In this pattern, there is a single
candlestick which has neither an upper shadow nor a lower shadow. This
candlestick moves from the open price to the high price with a solid body.

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 Bearish Marubozu

Bearish Marubozu candlestick pattern is a strong bearish pattern that occurs

when the market is in an unstoppable downtrend. In this pattern, there is a single
candlestick which has neither an upper shadow nor a lower shadow. This
candlestick moves from the open price to the low price with a solid body.

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 Double Top Pattern

Double top pattern is a bearish reversal pattern that is seen after an uptrend. In
this pattern, the price goes up twice but comes down again from the same level.
This pattern is identified by two high peaks or tops which are almost at the same
level. After this the price starts going in a downtrend.

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 Triple Top Pattern

Triple top pattern is also a bearish reversal pattern like double top pattern which is
seen after an uptrend. In this pattern, the price goes up to the same level three
times but again comes down from the same level again. In this pattern, three
peaks or tops are almost at the same level and it shows the support level between
the three peaks.

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 Double Bottom Pattern

Double bottom pattern is a bullish reversal pattern that is seen after a downtrend.
In this pattern, the price goes down twice but then goes up again from the same
level. This pattern is identified by two bottoms which are almost at the same level.
After this the price starts going in an uptrend.

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 Bullish Pennant

Bullish pennant pattern is a continuation pattern that is seen in the middle of an

uptrend. In this pattern, there is a rapid upward movement in the price, followed by
a consolidation phase which appears in a triangle shape. After this the price starts
going up again with the same uptrend.

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 Triple Bottom

The triple bottom pattern is a reversal pattern that appears at the end of a
downtrend. In this pattern, there is a three bar bottom formation in the price which
is identical. After this the price starts going up.

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 Bearish Pennant

Bearish pennant pattern is a bearish continuation pattern that is seen in a

downtrend. In this pattern, a downward trend is seen in the price and then a
sideways movement starts which appears as a triangle pattern. The bottom line of
this triangle is called the support line, which is a straight line.

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 Bullish Flag Pattern

Bullish flag pattern is a continuation pattern which is seen in an uptrend. In this

pattern, an upward trend is observed in the price and then a sideways movement
begins which appears as a rectangular shape. The top line of this rectangle is
called the resistance line which is a straight line.

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 Bearish Flag

Bearish flag pattern is a bearish continuation pattern that is seen in a downtrend.

In this pattern, a downward trend is seen in the price and then a sideways
movement starts which appears as a flag pattern. The bottom line of this flag
pattern is called the support line, which is a straight line.

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 Bullish Rectangle

Bullish rectangle pattern is a continuation pattern which is seen in uptrend. In this

pattern, an uptrend is observed in the price and then a consolidation phase begins
which appears as a rectangle pattern. The resistance line of this rectangle pattern
is called the upper trendline and the support line is called the lower trendline.

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 Bearish Rectangle

Bearish rectangle pattern is a bearish continuation pattern that appears in the

price chart. In this pattern, the price shows a downtrend and then starts a
sideways movement in the form of a rectangle. The upper and lower limits of this
rectangle pattern are called resistance and support lines.

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 Rising Wedge

Rising wedge pattern is a bearish reversal pattern that appears in the price chart.
In this pattern, the price shows an uptrend and then starts an upward movement in
the form of a wedge. The upper and lower limits of this wedge pattern are called
resistance and support lines.

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 Falling Wedge

Falling wedge pattern is a bullish reversal pattern that appears in the price chart.
In this pattern, the price shows a downtrend and consolidates in the form of a
wedge. In this pattern, the upper limit and the lower limit are made up of a
trendline with the same slope.

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 Head and Shoulders

The Head and Shoulders pattern is a bearish reversal pattern that appears in the
price chart. In this pattern, the price shows an uptrend and a unified top with three
peaks is formed, which is called the head. The peaks on either side of it are called
shoulders.

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 Inverted Head and Shoulders

Inverted head and shoulders pattern is a bullish reversal pattern that appears in
the price chart. In this pattern, there is a downtrend in the price which appears as
an inverted head and shoulders pattern. In this pattern, there are three bottoms
where the middle bottom is higher than both the ends.

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 Symmetrical Triangle

Symmetrical triangle pattern is a continuation pattern seen in the price chart. In

this pattern, there is a consolidation in the price which is formed in the form of a
triangle. In this pattern, the upper trendline and the lower trendline have the same
slope.

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 Broadening Triangle

Broadening triangle pattern is a volatile pattern that appears in the price chart. In
this pattern, there is an uptrend in the price but the range of the price increases. In
this pattern, the slope of the upper limit and the lower limit are opposite to each
other.

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 Ascending Triangle

The Ascending triangle pattern is a bullish continuation pattern that appears in the
price chart. In this pattern, the price shows an uptrend and consolidates in the
form of a triangle. In this pattern, the upper limit is always at a fixed level while
the lower limit moves higher.

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 Descending Triangle

The descending triangle pattern is a bearish continuation pattern that appears in

the price chart. In this pattern, the price shows a downtrend and consolidates in
the form of a triangle. In this pattern, the upper boundary is always flat, while the
lower boundary is downward sloping.

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 Cup and Handle

Cup and handle pattern is a bullish continuation pattern that appears in the price
chart. In this pattern, there is a long-term uptrend in the price and a cup-like
shape is formed in it, in which there is a downward correction in the price. Then
after the cup, a small consolidation appears in the price which is known as the
handle.

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 Rounding Bottom

Rounding bottom pattern is a bullish reversal pattern that appears in the price
chart. In this pattern, there is a downtrend in the price which gradually turns into
an uptrend forming a round bottom-like shape.

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 Diamond Bottom

Diamond bottom pattern is a bullish reversal pattern that appears in the price
chart. In this pattern, the price shows a downtrend and consolidates in the form of
a diamond shape. In this pattern, the upper triangle and the lower triangle are
made up of a trendline with the same slope as well as a horizontal trendline
forming between the prices.

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 Diamond Top

Diamond top pattern is a bearish reversal pattern that appears in the price chart.
In this pattern, after an upward move in the price, a diamond shaped pattern is
formed. In this pattern, the price level consolidates in the area between the upper
limit and the lower limit.

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 Trading Psychology Tips

Trading psychology is an essential aspect of successful trading, and developing a

strong mindset is crucial for traders to overcome challenges, control emotions,
and make effective decisions. Here are some trading psychology tips:

1.​ Manage your emotions: Fear and greed are the two most common emotions
that can affect traders' decision-making. It is important to stay calm,
rational, and objective in your trading decisions.

2.​ Have a trading plan: Create a detailed trading plan that includes your trading
goals, strategies, risk management rules, and a clear exit strategy.

3.​ Practice discipline: Follow your trading plan and avoid impulsive decisions.
Discipline is critical to achieving long-term success in trading.

4.​ Maintain a positive attitude: Stay optimistic and believe in yourself. Trading
can be challenging, but with a positive mindset, you can overcome obstacles
and learn from your mistakes.

5.​ Manage your risk: Don't risk more than you can afford to lose, and use
proper risk management techniques like stop-loss orders and position
sizing.

6.​ Learn from your mistakes: Analyze your trading results and learn from your
mistakes. Keep a trading journal to record your trades and evaluate your
performance regularly.

7.​ Be patient: Trading requires patience and persistence. Don't expect to make
quick profits overnight, and be prepared to invest time and effort to achieve
your trading goals.

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 Notes

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