Chart Patterns:

A simple guide to reading charts like a pro.

By: Brian Wieners

Trading Sync ©
Tradingsync.com
Lion Luxury, Inc.
Before we start we must go over some formalities.
This publication is intended to provide accurate and authoritative
information in regards to the subject matter within. This book is
not designed to be considered professional advice. If professional
advice is required, the services of a competent professional
person should be sought out. None of the information provided
in this book is to be considered investment advice or financial
advice. Any information provided within is to be used for
educational, informational or entertainment purposes only.
Investing and trading involves the risk of loss. Please consider
carefully whether trading or investing is appropriate for your
current financial situation. Only risk capital should be used when
trading. Investors could lose more than their initial investment.
Neither the authors nor the companies they work for are liable
for any actions prompted or caused by the information provided
within this book. Any views presented are those of the individual
author and do not represent the views of any of the
organizations or companies that they work for.
All Rights Reserved. No part of this publication may be
reproduced, distributed, stored in a retrieval system,
photocopied or transmitted in any form or by any means,
including photocopying, recording, or other electronic or
mechanical method. Especially without the prior written
permission of the publisher or author, except in the case of brief
quotations embodied in critical reviews and certain other
noncommercial uses permitted by copyright law. For permission
requests, write to the publisher, addressed “Attention:
Permissions Coordinator,” at the address below.
Brian@Tradingsync.com
First printing, 2015.
Printed in the United States of America.
Hello and welcome, my name is Brian and I will be
teaching you how to read charts like a professional
trader. In order to do this, I will be showing and
explaining to you chart patterns that can be used to
make wise long term investments, and/or day trades in
any market. Chart patterns are the most common type
of technical analysis used in trading. This is because
they are easy to understand, remember, and apply.
They allow for a trader or investor to find and exploit
the market bias, and to pinpoint entries and exits. If
you know the patterns and can find them, you stand at
a major advantage in any market. Using the patterns
within this book you can build a profitable trading
system. These patterns are in no way perfect, and they
will not always work. The one thing you must
understand is that in trading there is no holy grail, no
perfect system. Being able to admit when your wrong
and get out of bad trades is what separates the
winners from the losers. By understanding each
pattern clearly, and which types of patterns have the
highest probability of winning, you can pick the best
ones and increase your chances of success. These are
considered basic patterns, however how they are
traded can become complex. Pay attention and try to
draw out each one, and use real charts along with this
book to find real examples so you can start practicing
finding them.

Tradingsync.com/books
Before We Start Tradingsync.com/books

These patterns are all based on trader psychology,

and represent a frenzy of buying and selling by
humans and computers. Humans and the computers
or programs they make, are predictable. As nature
shows, we tend to do the same thing, over, and over
again. You can essentially predict, to profit. I want to
go over three concepts before going on to chart
patterns. Fibonacci, support and resistance (supply
and demand), and trend lines.
Understanding each idea completely can make the
chart patterns held within even more useful. Each
pattern within will either represent a reversal,
continuation of trend, or both. Determining where a
reversal is likely to take place allows us to pin point
trades like snipers. Successful trading relies on you
being able to get as many things in your favor as
possible. Having all of these concepts backing you up
gives a trade, pattern, or opportunity, a higher
probability of success. Really try to take your time
with each idea held within, it may seem like a lot
right now but over time it will become very simple
and feel like second nature. In order for this content
to be as useful as possible please draw out each
pattern as you learn it. We tend to forget about 75%
of what we learn in 24 hours. You'll want to write
some of this down.
Support and Resistance
Support and resistance is nothing more than buying
or selling pressure. Once buying loses its pressure, it
meets what is known as “resistance”. If selling loses
its pressure, that means its hitting support. Price will
usually bounce off of, or between support and
resistance levels, until it breaks through onto the next
support or resistance. Once resistance breaks, it
becomes support, and vice versa.
Resistance
Tradingsync.com/books

Break out

Resistance

Break out

Resistance
Resistance turns
Into support.

Support Support
Support and resistance is probably by far the most
important thing you need to consider before a
trade. It will help determine your entries, stop
losses, and take profit points. If you have a good
handle on this concept you will have a better view
of what is happening in the market.
80
Breakout candle
60

40 Resistance

20

Trading Support and Resistance.

Support and resistance is used as a predictive indicator.
We find prices where candles have reversed out of,
preferably quickly, and without any opposite pressure.
We then predict that if prices returns, it will act in a
similar manner. There are basically two ways to play
support and resistance, breakouts, and bounces.
Breakouts occur when price tests a zone that we have
defined as support or resistance. If the zone we
identify doesn’t hold, it’s then considered a
breakout as shown above. If it breaks out we know
that price is moving with pressure and will likely
continue to move in the breakout direction.
Tradingsync.com/books

Stops would be placed just below the resistance.

Ideally we would like to have our take profit (TP) at
the next resistance, but if there is none we would set
TP at least double our risk and move stops.
60
Supply Sell
50

40

30

20

10
Demand
0

Supply and Demand (Advanced Support

and Resistance.)
The red box above represents supply (resistance), and
the green box is demand (support). By looking to the
left at the 2nd candle we see a reversal take place. By
drawing a box around the body of the candlestick, we
have a place where price is likely to reverse to the
down side in the future, since it has before. On the 4th
candle we see price move a lot, but close near the
open. This shows price bounced off of 15 with heavy
Tradingsync.com/books

buying pressure (Demand). We can predict price will

bounce between these zones until a breakout occurs.
On the second to last candle price enters the supply
zone, we would have sold the asset in the zone with
stops just above supply, and take profit in the demand
zone.
 Bounces
All of the concepts in here work in a buying or selling
environment, you simply just need to invert it
respectively. To save time and monotony, try to
understand that the concept on the last slide holds
true for selling. If prices are falling and it meets a
level of support we that have identified. We can see
if prices bounce or break out. Then decide if we
want to go short or buy on the bounce.

70

60
Resistance
50

40

30

20
Bounce
10
Support
0
Tradingsync.com/books

Tradingsync.com/books
 Tradingsync.com/books
Trend Lines
Trend lines represent a strong bias and obviously a
trend. Trend lines are variable indicators and rely on
the bodies of candlesticks. Notice how price never
closes below the trend line, but may have lows past it.
This is still a valid trend line, so be careful.

Up Trend Lines
80 (Bullish)
60

40

20

A trend line is a great bias confirmation tool, ideally you

would use the patterns in this book to find perfect
opportunities where they both line up. You can trade
trend lines in basically the same way as support and
resistance. Either on a bounce off the trend line, or
breakout of the trend line. Both are viable options,
neither being better than the other. Trend lines should
run along the bodies of candles.
 Down Trend Line
(Bearish)
80
Breakout, BUY!
60

40

20

0
Often times tests will happen, these are usually to get
sellers out of the market before a major push. Here we
see price push past the line a few times before the
breakout. You MUST wait for a close outside of a trend
line before entry on a breakout. Usually a breakout
occurs because of a news release. Bounces off a trend
line may happen because of one of the patterns that
you will learn in a few minutes. Trend lines can be used
as a great confirmation of bias. They can be drawn on
any chart and should be available with any good
charting platform. A good trend line starts from a
significant high or low and continues to have candle
bodies hit it as time goes on. Price may move away
from the trend line for significant amounts of time and
then return to it.
 Fibonacci Levels
You probably learned about Fibonacci in school and
don’t remember him. Fibonacci discovered the
Fibonacci Sequence. The sequence is also known as
the golden ration (.618). The sequence is a row of
two numbers that add up to create the next
number in the sequence. Observe,

Tradingsync.com/books
0+1=1,
1+1=2,
1+2=3, 2+3=5, 3+5=8, 5+8=13, 8+13=21
And so the sequence is,
0,1,1,2,3,5,8,13,21,34,55,89,144.
What matters is how this sequence can be used to
predict where support and resistance may form.
Fibonacci's sequence is used as a tool to create
levels on a scale known as Fibonacci levels. A more
in depth discussion and demonstration of the
Fibonacci tool will likely come in future eBooks.
They will definitely be covered in an advanced
pattern book to come as they are required for the
strategy that I use, Harmonics. Understanding
Fibonacci levels can be confusing at first but you
will get it as time goes on. There are Fibonacci
retracements, Where price retraces after a large
move, projections, and extensions, Where prices
push past the large move.
 Tradingsync.com/books
The Fibonacci Retracement
The Fibonacci here is drawn from a swing low to a
swing high. We are trying to determine how much the
current move will retrace before it stops and reverses
back to the upside. Price has hit the 50% level and
stopped, it now might reverse, or continue to
the next levels then bounce. To help, we bring out
other tools like, (candlesticks, indicators, etc.) to
determine good entry and exit points. Fibonacci's have
become a self fulfilling prophecy because so many
people use them. A 61.8% retracement is considered
the strongest level.

60

50 0%

40 38.2%

30 50%
61.8%

20 78.6%

100%
10

The Fibonacci tool is a must have in your trading

tool box, if you don’t understand it, please put in
the time to really getting it down pat.
 The Fibonacci Extension

70
1.618
60 1.414
1.272
50 B
1.00
40
30
20 A
C 0%
10
0
The Fibonacci extension is created by using the
Fibonacci tool to draw from points a to b to c, as
shown above. By bringing all of the ways to use the
Fibonacci tool together, you can define zones where
price is likely to meet heavy support or resistance. This
tool is incredibly useful for trading with harmonic
patterns, and is a requirement to do so properly.
Fibonacci levels are very powerful and are a self
fulfilling prophecy because so many people use them
to trade. Using Fibonacci's with patterns allows you to
project where to take profit, and to help define the
highest probability trades. 1.618 is the strongest level
on an extension Tradingsync.com/books
 The Fibonacci Projection

70 1.618
1.618 1.414
60 1.414
1.272
1.272
50 1.00 B
1.00
40
30
20 0%
C C
A 0%
10
0
The Fibonacci projection is the same concept but
instead of the move retracing, its actually expanding
upon it. With this we draw from the low to high. On a
platform you will need to actually click on the low,
then the high, then back to the low again. As shown
above with a,b,c. A projection is used to find the next
levels of support and resistance of a move. The move
shown above has extended to the 1.618 of the
previous move up and may find some resistance. The
projection levels to watch are 1.13, 1.272, 1.414,
1.618, 2.0, 2.4, 2.618, 3.00, 3,618.The retracement
levels are 38.2, 50.0, 61.8, 78.6, 88.6, and 100.00

Tradingsync.com/books
The Head and Shoulders
The Head and Shoulders pattern is the first pattern I
want to teach because,
• It is powerful,
• Has great risk : reward.
• Easy to remember and find.
• The easiest to teach.
• It has precise stop and limit orders.
•Shows up on all time frames and markets.
•A great way to show the combination of Fibonacci,
Trend lines, and Supply and Demand.
•Probably one of the more common patterns
•All you have to remember, is this.
 Trend Line
Head
Right
Left
Shoulder
Shoulder
Stop
Loss

Neck Line

Short Here

Tradingsync.com

Take Profit

Here we have the regular version of the head and

shoulders, an excellent shorting opportunity. This
pattern is only to be traded on the breakout of the
neckline after the right shoulder. Take profit is
determined by the distance between the neckline and
top of the head. Just add that onto the neckline as
shown on the right of the graph with the green arrows.
Stop loss should be placed just above the neckline
breakout candle. Ideally we would wait to enter after a
close below the neckline. Notice how the trend line
runs in unison with the head and right shoulder. This is
common, and a great confirmation.
 Inverted Head and Shoulders
0
5 Take
Profit
10
15
20 Buy

25
Tradingsync.com/books
30
35 Stop
40 Loss
61.8%
45
50
The best head and shoulders patterns will have right
shoulders that are a .618 retracement of the head. The
head and shoulders works great in a trending
environment, and can come in many different shapes
and sizes. This pattern ultimately represents a massive
break out of either support or resistance. It may lead
to major reversals on larger timeframes. The correct
way to play this pattern is to wait for the entire pattern
to form. Then once price breaks out past the neckline,
you can enter a position. Shown here on the 2nd to last
candle.
 Triangles
The next patterns are probably the most common, and
easiest to find. However trading them can be
challenging if you don’t know what you’re doing. You
quite literally are looking for sideways triangles. A
triangle pattern represents consolidation. Consolidation
occurs when buyers and sellers aren’t really sure which
way to take price next. There are 3 different types of
triangles, they can be symmetrical, ascending, or
descending. The triangle pattern can be played in two
ways, either on the inside of the pattern, and/or on the
break out of the triangle.

Symmetrical

Tradingsync.com/books

Ascending

Descending
 Symmetrical Triangle

Tradingsync.com

This is a symmetrical triangle, price consolidates in a

range until a break out occurs. If the triangle is big, you
can trade it by buying at the bottom of the triangle and
selling at the top inside of it, and on the break out of it.
If it’s a smaller pattern, it may be best to just wait for a
breakout. Usually this pattern is a continuation of
trend, so if the price action before the pattern is
bullish, price will likely break out to the upside and vice
versa, but not always. Beware of false breakouts (Fake
outs) where price is pushed out, and then flips to head
the other direction. This is basically due to market
manipulation, so orders get filled going the wrong way.
When a breakout occurs price can move extremely
quickly, be careful and always use stops. Entry on close
outside of triangle, stops just past prior supply or
demand zone, TP is length of triangle as shown.
 Ascending Triangle

The ascending triangle works on the same concept as

the symmetrical, this pattern can breakout in either
direction. Usually this represents a major break in
some type of resistance. In all triangles if price is a
majority on a certain side of the pattern, that’s usually
the direction it will break out to. As shown by the line
running through the middle of the triangle, price
clearly is in the upper half of the triangle more. With
all of these triangle patterns you should base them on
the bodies of the candles. You also must wait for a
close above the bodies to enter breakout, preferably
the past wicks of the candles that touched the top of
triangle. This pattern will usually break out bullish, but
once again not always it can really go either way. The
most important part of reading patterns is watching
the candles. Defined as same highs, higher lows.
Tradingsync.com/books
 Descending Triangle

Tradingsync.com/books

SL

EP

TP
The descending pattern is simply the inverse or bearish
version of the ascending. This pattern has the same
lows, but lower highs until a breakout.
Key points for all triangles.
- These patterns work best in trending markets.
- The side price is in more, is likely breakout side.
- Entry on significant close outside of triangle
- Stop loss below supply or demand zone.
- Take profit is distance of triangle, added on to the
breakout as shown with the arrows.
- Manipulation is prominent, very popular patterns.
- Each triangle can breakout in either direction.
- Ascending, more likely bullish breakout.
- Descending, more likely bearish breakout.
- Symmetrical, usually in same direction as
trend before pattern, not always.
 Doubles
Doubles represent major support and resistance. They
are also technically a consolidation pattern. There are
double tops and double bottoms. Double tops consist
of a move up into resistance, a bounce, a dip into
support and then a retest of the last high. Price then
bounces almost exactly off of where it did on the last
move. A double can occur at any time in the market
but usually is a sign of major support or resistance.
These patterns are always a reversal.

Tops

SL
EP
The SL, Entry point and Take
profit are the same for both
patterns, just opposites. TP

Bottoms

Tradingsync.com/books
Double Top
 Triples

Same exact concept as doubles, however more

powerful because more pressure is building. Same
take profit, stop loss, and entry, as doubles. Triples
are a major reversal pattern and can be found at
whole round numbers or fib levels.
 Pennants
Pennants are very similar to symmetrical tringles,
however they show up after large moves. They also
typically are a continuation of trend. It represents a
slight consolidation or a “breather” for price to catch up.
It also happens because people are taking profit from
the last move, which fills orders for the next move up or
down. This pattern gets its name from looking like a
pennant flying in the wind atop a large pole. Usually the
moves before and after are definitive and quick.
Pennants have amazing risk to reward, and allow you to
get in on massive trends. Stop loss just below the
triangle and TP the length of previous large move up
from the middle of triangle as shown with arrows. Entry
point (EP) on break out of pennant.

TP

EP SL

SL EP

TP
Tradingsync.com/books
Bullish Pennants

Tradingsync.com/books
 Flags (a.k.a Channels)
Flags are continuation patterns and come after large
market swings, just like pennants. These look like
rectangles, or flags, instead of triangles. A sign of
consolidation, and potentially another move with
trend. These patterns can break out in either way, but
predominantly will break out to the direction of
previous trend. A flag can happen when price breaks
into a range and finds tight support and resistance.
Usually the tighter the range and the more it holds,
the stronger price will break out. These patterns can
appear multiple times in a row. Remember that none
of these patterns are perfect and can often times not
act how we want them to, you need to use proper
money and risk management.

TP

EP SL

SL EP

Tradingsync.com/books TP
 Tradingsync.com/books
Bullish Flags
 Wedges
Wedges can be reversal or continuations patterns. A
wedge once again looks like its name. If you can try to
connect all of these patterns with what their names
look like it will be much easier to visualize them on a
chart of random price action. There are once again
bullish and bearish versions. Price is more likely to break
out in certain directions depending on how price
entered into the pattern and in which way it is forming.
Price will slowly consolidate into a smaller range of
numbers till the breakout. Enter on breakout, TP
distance of middle of pattern added to breakout, SL past
supply or demand zone.

Tradingsync.com/books
 Tradingsync.com/books
Bullish Wedges
 Tradingsync.com/books
Cup and Handle
This is an underrated pattern. It represents a
continuation of trend. It’s a great way to get into trend
using a major breakout as your entry. Price tests
support or resistance and bounces, then retests again
to form the cup. Price will then pull back again to form
the handle. Price action will break out quick because of
all the pressure, beware of fake outs. These patterns
have great risk to reward. SL beyond former support or
resistance. TP should be the distance of the breakout
line to the bottom of the cup added on to the breakout
as shown. Entry point on close above, or below, the top
of the cup.

TP

EP

SL

Cups Handles

SL

EP

TP
 Tradingsync.com/books
Cup and Handle
Bullish

Bearish
 Diamonds
A diamond pattern is usually found within other
patterns, especially harmonics. As with the other
patterns, it looks how it sounds. It’s another pattern
where you trade on the inside and on the outside.
However on the inside it can get volatile and is usually
not worth it. These can commonly be found after large
moves. Diamonds can break out in either way and it’s
hard to determine what is more likely to happen
depending on previous trend. However from personal
experience it will usually be a reversal.

Tradingsync.com/books
 Broads Tradingsync.com/books

These are the last patterns I want to go over but that

doesn’t make them any more or less powerful. All of
these patterns are generally the same in terms of use
and strength. This pattern is again similar to the
triangle patterns but instead of price consolidating its
expanding. These patterns can be a little tricky to find
and that’s partially because they are not as common
as the other ones outlined before. A broad can be
traded on the inside of the pattern and on the break
out, however in the pattern is better. Simply buy at
bottom and sell at top and TP at opposite side, SL just
beyond the pattern.
For breakouts, TP Distance of middle of pattern added
to breakout. SL at last major support or resistance, or
½ of the potential reward. This concept can be applied
to all of the patterns learned. Never trade if you're not
making at least double what your risking.
 Ending notes
Remember that these patterns are not perfect. You
absolutely must use proper risk management in order
to be successful with them. The patterns you now
know are in basically every market. You can use them
to day trade, swing trade, or to find stocks for your
retirement.
Another thing to remember is that the trend is your
friend. It’s always good to be in trend, you just need to
understand when to get out. You can use any of the
patterns you’ve learned here to determine if you
should get out of a trade. If your bullish and just
bought a stock, and a month later your up but see a
head and shoulders forming (Bearish), you can take
your profit and move on. But, if you see a continuation
pattern like the cup and handle you can potentially add
onto your position or at the least just leave it be with
confidence.
Stick to one plan, if you want to trade patterns then
only do that, don’t trade patterns and then sometimes
trade news events. Only use one strategy in your plan
at a time.
Most of the patterns within can be traded from inside
the pattern, although this is sometimes the best
option you must take profit quickly, or you could find
yourself in a bad spot. Ideally trade inside the pattern,
and on the breakout.
 Ending Notes
If you want to master these start drawing the patterns
out manually. If you can’t think of them on the spot, it
will be hard to find them real time. Really try to
memorize them and it will make finding them much
easier. Take your time and focus on one pattern
specifically and try to master it. Draw it out and also
try to find it in a real chart if you can, most of these
patterns are very common and form hundreds of times
a day. These patterns are considered basic chart
patterns and a more advanced book covering the
subject of harmonics will be coming shortly at
TradingSync.com
I thank you for reading and for your support. I wish you
nothing but true success on your trading journey and
hope you find all that you desire. The patterns you
now have are a vital part of any technical traders
arsenal. If you can use these patterns properly you can
make lots of money and save yourself tons more.
Please visit our site for more amazing content at
TradingSync.com
Follow us @tradingsync