Pattern library
Candlestick and chart patterns describe how price tends to behave in certain conditions. None of them proves a direction on its own; each points to a possibility.
At MarketLevelMap we read patterns together with support and resistance zones. Where a pattern forms matters as much as what it is: the same candle can mean something at a zone and little in open space.
Chart patterns
Patterns read from the peaks, troughs and lines that many candles form, pointing to a possible reversal or continuation of the trend.
Head and Shoulders
A reversal pattern that forms at the end of an uptrend and is made of three peaks.
Inverse Head and Shoulders
A reversal pattern that forms at the end of a downtrend and is made of three troughs.
Double Top
A reversal pattern that forms at the end of an uptrend, when price makes two peaks at roughly the same level.
Candlestick patterns
Patterns of one to three candles that can point to a short-term change of direction or to indecision.
Bullish Engulfing
A reversal pattern that forms after a decline, when a large green candle completely engulfs the body of the previous red candle.
Bearish Engulfing
A reversal pattern that forms after a rise, when a large red candle completely engulfs the body of the previous green candle.
Hammer
A single-candle reversal pattern that forms after a decline, with a small body and a long lower wick.