cheatsheet

🟢 BULLISH REVERSAL PATTERNS
These appear at the bottom of a downtrend and signal that price is about to go UP.
1. Hammer
The hammer has a small body at the top and a long lower wick (at least 2x the body). It means sellers pushed the price down hard, but buyers came back strong and pushed it back up before the candle closed. The longer the lower wick, the stronger the signal.

✅ What to do: Look for this after a downtrend. If the next candle is green, it confirms — consider buying.

2. Bullish Engulfing
A large green candle completely covers the previous red candle's body. This shows buyers overwhelmed sellers in one move. One of the most reliable reversal signals in crypto.

✅ What to do: Buy when the green candle closes above the previous red candle. Put your stop-loss below the low of the pattern.

3. Morning Star (3-Candle Pattern)
Three candles in order:
Candle 1 — Big red candle (bears in control)Candle 2 — Small candle or Doji (indecision)Candle 3 — Big green candle (bulls take over)
This is one of the strongest reversal signals because it shows a clear shift from selling to buying pressure.

✅ What to do: Wait for all 3 candles to close, then enter on candle 4. Stop-loss below the Doji low.

4. Double Bottom (W Shape)
Price hits the same support level twice, fails to break lower, then bounces. The "W" shape is the visual clue. When price breaks above the neckline (the middle peak of the W), the pattern is confirmed.

✅ What to do: Buy when price closes above the neckline. Target = the height of the W pattern added to the breakout point.

🔴 BEARISH REVERSAL PATTERNS
These appear at the top of an uptrend and signal that price is about to go DOWN.
5. Shooting Star
The opposite of a Hammer. Small body at the bottom, long upper wick (2x the body). Buyers tried to push price up, but sellers rejected it hard and pushed it back down. Appears after a rally.

🚨 What to do: Look for this after an uptrend. If the next candle is red, it confirms — consider selling or taking profit.

6. Bearish Engulfing
A large red candle completely swallows the previous green candle. Sellers overwhelmed buyers in a single session — powerful reversal warning.

🚨 What to do: Sell or short when the red candle closes below the previous green candle's body. Stop-loss above the wick high.

7. Evening Star (3-Candle Pattern)
The mirror opposite of the Morning Star:
Candle 1 — Big green candle (bulls in control)Candle 2 — Small candle or Doji (indecision/exhaustion)Candle 3 — Big red candle (bears take over)

🚨 What to do: Wait for candle 3 to close before entering a short. Stop-loss above candle 2's wick.

8. Double Top (M Shape)

Price hits the same resistance level twice, fails to break higher, then drops. When price breaks below the neckline (the middle dip of the M), the pattern is confirmed.

🚨 What to do: Sell when price closes below the neckline. Target = height of the M added downward from the neckline.

🔵 CONTINUATION PATTERNS

Price pauses briefly, then continues in the same direction it was moving.
9. Bull Flag
After a sharp move up (the pole), price consolidates in a slight downward channel (the flag). This is just bulls taking a breath — the trend then continues upward.

✅ What to do: Buy when price breaks above the upper line of the flag. Stop-loss below the flag's lower channel.

10. Bear Flag
The opposite — after a sharp drop (the pole), price consolidates slightly upward (the flag), then continues dropping.

🚨 What to do: Short/sell when price breaks below the lower channel of the flag. Stop-loss above the flag's upper channel.

11. Pennant (Symmetrical)
Similar to a flag but the consolidation forms a triangle (converging lines) instead of a channel. The breakout happens in the same direction as the original move.

✅/🚨 What to do: Trade in the direction of the breakout. Wait for price to close outside the triangle before entering.

12. Rising Wedge (Bearish Continuation)
Price makes higher highs and higher lows but within converging trendlines that slope upward. Despite looking bullish, this is a trap — it usually breaks DOWN. Sellers are quietly taking control.

🚨 What to do: Wait for a breakdown below the lower trendline. This often leads to sharp drops.

📐 CHART PATTERNS
Larger, multi-week patterns visible on daily/weekly charts.
13. Head & Shoulders (Bearish)
Three peaks: a left shoulder, a higher head, and a right shoulder at roughly the same level as the left. When price breaks below the neckline, it signals a trend reversal down.

🚨 What to do: Sell on the neckline break. Price target = distance from head to neckline, projected downward.

14. Inverse Head & Shoulders (Bullish)
The upside-down version — three troughs with the middle one being the deepest. A classic bottom formation. Neckline breakout = strong buy signal.

✅ What to do: Buy on the neckline breakout. Target = distance from head to neckline, projected upward.

15. Ascending Triangle (Bullish)
Flat resistance at the top + rising support at the bottom. Buyers are getting more aggressive each time, pushing the lows higher. Usually breaks UP.

✅ What to do: Buy on resistance breakout with strong volume. Stop-loss below the last higher low.

16. Descending Triangle (Bearish)

Flat support at the bottom + falling resistance at the top. Sellers keep pushing lows, squeezing price into the support. Usually breaks DOWN.

🚨 What to do: Short on support breakdown. Stop-loss above the last lower high.

🕯 CANDLESTICK SIGNALS
17. Doji Types (Indecision)
A Doji forms when open and close prices are nearly the same — the market is undecided.

Standard Doji — Equal wicks both sides. Pure indecision.Dragonfly Doji — Long lower wick, no upper wick. Bullish signal — buyers reclaimed all losses.Gravestone Doji — Long upper wick, no lower wick. Bearish signal — sellers rejected all gains.Long-legged Doji — Very long wicks both sides. Extreme volatility / high uncertainty.
18. Three White Soldiers / Three Black Crows

3 White Soldiers — Three consecutive large green candles. Each opens within the previous body and closes higher. Very strong bullish momentum — trend is clearly up.3 Black Crows — Three consecutive large red candles closing lower each time. Strong bearish momentum — trend is clearly down.

💡 The bigger the candle bodies and the lower the wicks, the stronger the signal.

19. Harami (Inside Bar)
A small candle forms completely inside the previous large candle's body. It signals that momentum is slowing.

Bullish Harami — Small green inside a big red. Selling pressure is weakening.
Bearish Harami — Small red inside a big green. Buying pressure is fading.

💡 Wait for confirmation — the candle AFTER the Harami tells you which way it breaks.

⚠️ GOLDEN RULES FOR USING THESE PATTERNS

Rule
Why it matters

Always wait for candle close confirmation
Patterns that aren't confirmed fail often

Use volume to validate breakouts
High volume = strong move, low volume = fake-out

Always set a stop-loss
No pattern works 100% of the time

Combine with support/resistance levels
Patterns near key levels are far more reliable

Check the higher timeframe first
A bullish pattern on 1H means nothing if the daily is bearish

Don't trade every pattern you see
Be selective — quality over quantity

🚨 Disclaimer: This is for educational purposes only. None of this is financial advice. Always do your own research (DYOR) before trading. Crypto is highly volatile — only trade what you can afford to lose.

#cheatsheet #BullishPatterns #hammer #harami #dojicandle