Chart patterns, one by one

Candlesticks and price patterns, one by one: the exact threshold, what they are actually worth, and how to measure them in your own journal.

Most pages on chart patterns assert without measuring, and give a different threshold from one author to the next. These lessons do the opposite: one pattern per page, a fixed numerical threshold, sourced measurements rather than promises, and the only question that really matters to you, which is whether the pattern works on your market and at your timeframe.

The starting point remains the candlestick charts lesson, which explains why we do not recite the catalogue. The pages that follow take the patterns you will actually meet, and hold them to the same standard.

The eleven patterns, in miniature The eleven patterns of the category, each in its reference shape. At the top, the candlestick patterns, read on one or two candles and only worth something because of where they appear. At the bottom, the price patterns, formed over dozens of candles and pointing to their own entry. Each lesson gives the exact threshold and the measured numbers.

Chart patterns

11 lessons

Hammer candlestick pattern The exact threshold that makes a hammer, what it is worth across thousands of measured cases, and the three patterns mistaken for it. Hammer candlestick pattern 9 min Chart patterns Inside bar: continuation, not reversal The pattern nearly every price action course teaches backwards, and the study of almost 30,000 cases that proves it. Inside bar: continuation, not reversal 6 min Chart patterns Engulfing candle: what it is worth The most taught two-candle pattern on the market, how frequent it is, and why its performance rank sits so low. Engulfing candle: what it is worth 6 min Chart patterns Spinning top candle: a measured coin flip The second most frequent candle on the chart, and the study that gives it exactly one chance in two. Spinning top candle: a measured coin flip 5 min Chart patterns Triangle pattern: the actual numbers The most drawn pattern on the market, and the study ranking it 36th out of 39. The three variants and what they are worth. Triangle pattern: the actual numbers 6 min Chart patterns Cup and handle: a top-ranked pattern The best ranked pattern in this file: 3rd out of 39, 5% failure. And why almost nobody trades it properly. Cup and handle: a top-ranked pattern 5 min Chart patterns Double bottom and its four shapes A failure rate of 4% to 5%, and a shape distinction almost nobody applies although it changes the ranking. Double bottom and its four shapes 5 min Chart patterns Pin bar: a hammer under another name The star pattern of price action, absent from every reference ranking, and why that is perfectly normal. Pin bar: a hammer under another name 6 min Chart patterns Wedge pattern: falling and rising A pattern breaking upward in more than two thirds of cases, and returning to its line almost as often. Wedge pattern: falling and rising 4 min Chart patterns Tweezer tops and bottoms The only pattern in this file whose study gives the exact opposite of what it is supposed to announce. Tweezer tops and bottoms 5 min Chart patterns Gap fill: which gaps actually close No, gaps do not always fill. Depending on the type it is 85% within a week, or 1%. Gap fill: which gaps actually close 6 min Chart patterns