Trading Education Guides Day Trading
- ByAngelica Rieder
- Updated May 11, 2024
7 min read
- Reviewed by Bullish Bears
- Fact checked by Lucien Bechard
SHARE THIS ARTICLE
What are the best day trading patterns for beginners? The easiest to learn patterns are the falling wedge, rising wedge, bull flag breakout, and cup and handles. The cool thing about trading patterns is that they happen repeatedly, and you can fall in love with or even marry them. Regardless, if you’re new to trading, you’ll quickly realize there are more patterns to trade than sand at the beach, so you must pick your favorite.
You can find the best day trading patterns for beginners on bothintraday chart setups and all other timeframes.Day trading is fast-paced. When you’re a new trader, it can be overwhelming. Finding the bestday tradingpatterns for beginners can help clear up the chart and direction you need to trade.
Whether you’re looking forbullish chart patterns or bearish ones, make sure you can spot them. If you’re not a floor traderand are just starting trading, here are a few of the best day trading patterns for beginners.
Candlesticks eBook & Wallpapers
Price action is the most important indicator to learn when trading. It shows what's happening real time. Our free eBook covers the most popular patterns and how to trade them. Custom-made desktop wallpapers included.
Get eBook
Table of Contents
- Best Day Trading Patterns for Beginners
- 1. Day Trading Hammer Patterns
- 2. Day Trading Engulfing Patterns
- 3. Day Trading Bull Flag Patterns
- Meaning of Candlesticks
- Versatility
- Final Thoughts
- Frequently Asked Questions
Best Day Trading Patterns for Beginners
- Bull Flag patterns
- Harami patterns
- Pennant patterns
- Falling wedge patterns
- Bottom patterns, i.e., double and triple
- Top patterns, i.e., doubleand triple
- Cup and handle pattern
- risingwedge stockpattern
This is a day trading pattern of a hammer on a 5-minute chart of $MTCH. It formed an intraday double bottom pattern near support and then broke out. The bigger patterns were a cup and handle, which turned into a rising wedge.
1. Day Trading Hammer Patterns
The hammer is a candlestick where the wick is considered twice as long as the body. Also, at times, there can be very little or even no wick above the body!
A hammer candlestick is typically found at the base of a downtrend or near support levels. We, traders, like hammer candlesticks because they’re a sign that a reversal is about to happenin the price direction of astock.
Reversals can be by themselves or a part of the best trading patterns for beginners. As a result, look at the big picture too.
2. Day Trading Engulfing Patterns
In simpleterms, the Engulfing candlestick pattern is when the second candle’s body covers the whole body of the previous candlestick. I
It’s important to remember that the Engulfing candle must cover both the body and wick of the previous (first) candlestick.
Undoubtedly, the bullish engulfing candle is one of the best candlestick patterns to signify a reversal in the market. When spotted, the buyers or sellers have been aggressive enough to bring the price back to a level beyond the extreme level of the previous day.
It is crucial to realize that not all Engulfing Patterns mean something. For starters, for a bullish Engulfing Pattern to signal a reversal, it must appear after a significant drop in the price.
Likewise, for a bearish Engulfing Pattern to be considered valid, it must appear after a large price increase.
As mentioned above, candlesticks come together to form a pattern. And it’s your job to identify the best day trading patterns for beginners so you can make money.
3. Day Trading Bull Flag Patterns
A bull flag is probably the easiest pattern to learn. It’s probably the most popular too. It’s considered a bullish continuation chart pattern and a sign that the market will advance. In no uncertain terms, the bull flag pattern is one of the most common patterns found on charts.
Here’s how to spot one:
- Look for a strong move up on high relative volume. In this scenario, the candle range is bullish than usual, closing near the highs.
- A “break” and consolidation near the top of the pole, foriformflag.
- A “breakout” of the consolidation on high relative volume, continuing the upward trend.
This is a typical bull flag using simple bars. Notice the big green flag pole, followed by the red consolidation lines. Then, the price broker out of the flag to continue the move up.
Meaning of Candlesticks
Before you can start to identify the best day trading patterns for beginners, you need first to understand what makes up the patterns in the first place.
Just like every human has different DNA, every pattern has differentcandlesticks. Some DNA combinations result in blue hair, others in red hair.
Likewise, combinations of candlesticks show us patterns so we can make educated trading decisions. Here are two of my favorite candlesticks that help me in my trading decisions: the hammer and the engulfing candlestick pattern.
Versatility
What I like about bull flag patterns is their versatility; you can use them on any time frame for any trader.
For example, scalpers might use the two and 5-minute time frames to catch quick price fluctuations. Alternatively, swing traders can also use the bull flag pattern on the daily chart.
In my experience, the best time to trade the Bull Flag Pattern occurs just after a breakout.
Furthermore, they are the perfect pattern for new traders because they are easy to spot and trade once you understand their ins and outs.
Final Thoughts
The main thing to look for in any pattern is volume. Volume confirms major moves and the likelihood of sustained breakout or reversal.
Furthermore, periods of high volume tell us people are interested in the stock, which means that more traders are trying to take positions. And this beehive of trading activity allows the stock to make bigger price moves.
As (day) traders, we look to capitalize on these significant moves. Focusing on range-bound stocks makes nofinancial sense due to their limited trading activity (i.e., low volumes).
Just like no two humans are alike, no two traders are alike in their strategy; that makes them unique. If you want to find your unique edge and the pattern that works for you, join us today!
Our team of experts will guide you on your journey so you can create a custom strategy built for you! Happy Trading!
Frequently Asked Questions
What Is the Most Common Pattern in Day Trading?
The most common pattern in day trading is the flag and pennant patterns. Bull flags and bull pennants for bullish patterns. Bear flags and bear pennants for bearish patterns.
Do Patterns Work in Day Trading?
Patterns are the most important indicator to use when day trading. They form important support and resistance levels,, giving traders the buy and sell signals they need to enter and exit trades.
Is Day Trading Ever Profitable?
The majority of day traders lose money because they need to learn technical analysis and proper risk management strategies. Top-day traders stick to a minimal-risk trading plan and trade their top two to three favorite patterns.
What Is the Best Pattern for Day Trading?
Best Patterns for Day Trading
Are Day Trading Patterns Real?
Day trading patterns are real and traders use them every day to determine price targets. They do not guarantee price movement, however, they are valuable to determine risk management.
Related Articles
Stock Borrowing and Lending Explained
September 14, 2023
Many financial instruments in the stock market can benefit individual or institutional investors. As the economic environment changes, certain tendencies become more popular. During strong
Read More »
What Is Churn in Trading?
August 31, 2023
Investors must be aware of this. Don’t work with traders who churn. The SEC has resources on how to identify and report it. Always do your due diligence before investing.
Read More »
How Many Day Trades Can You Make In a Week?
August 4, 2023
As a day trader, you should know the pattern day trader rule and how it can impact you. The PDT rule restricts traders who engage
Read More »
List of the Best Offshore Brokers
July 12, 2022
Every day, investors are limited when they want to invest outside their country. Most local financial institutions only offer popular markets such as the US,
Read More »
Short the Rip Meaning
January 4, 2022
Want to get the most out of your trading routine? Try out the short rip selling pattern. You can add this trading setup to your
Read More »
Shorting
Stock Borrowing and Lending Explained
Read More »
Loran ShkolnikApril 15, 2024
Day Trading
What Is Churn in Trading?
Read More »
Lucien BechardMarch 11, 2024
Day Trading
How Many Day Trades Can You Make In a Week?
Read More »
Angelica RiederApril 16, 2024
Day Trading
List of the Best Offshore Brokers
Read More »
Loran ShkolnikMay 22, 2024
Free Trading Courses
Enroll Now
Get Your Free Trading Courses
- We want to teach you
- Learn day trading, swing trading, options, futures, and price action
- Rated Best Value Courses by Investopedia
STOCK TRADING SERVICE
Our chat rooms willprovide you with an opportunity to learn how to trade stocks, options, and futures. You’ll see how other members are doing it, share charts, share ideas and gain knowledge.
Our traders support each other with knowledge and feedback. People come here to learn, hang out, practice, trade stocks, and more. Our trade rooms are a great place to get live group mentoring and training.
TRADE ALERTS “SIGNALS”
The Bullish Bears trade alerts include both day trade and swing trade alert signals. These are stocks that we post daily in our Discord for our community members.
These alert signals go along with our stock watch lists. Our watch lists and alert signals are great for your trading education and learning experience.
We want you to see what we see and begin to spot trade setups yourself.
REAL-TIME STOCK ALERTS SERVICE
We also offer real-time stock alerts for those that want to follow our options trades. You have the option to trade stocks instead of going the options trading route if you wish.
Our stock alerts are simple to follow and easy to implement. We post entries and exits.
Also, we provide you with free options courses that teach you how to implement our trades as well.
STOCK TRAINING DOESN’T NEED TO BE HARD
Stock training doesn’t need to be hard. But it sure feels hard when you don’t know where to turn for legitimate knowledge. There are tons of places to learn, but what makes us different?
Well, for starters, we’re just real everyday people who like trade stocks. We’re not gurus portraying a fancy lifestyle of cars and jets and beaches. Can you obtain those things with what we teach you? Sure you can. Is that what motivates us when teaching you how to trade?
Nope. What we really care about is helping you, and seeing you succeed as a trader. We want the everyday person to get the kind of training in the stock market we would have wanted when we started out.
WHY WE’RE DIFFERENT
What else makes us different? When it comes to the stock market, we’ve won, we’ve lost, we’ve lived, and learned. We’ve been through the ups and downs in the market and figured out what really matters. The Charts…Candlesticks = PRICE ACTION! We’ve created a site that passes all this knowledge on to you.
We don’t charge you an arm and a leg for the stock training we give you. We charge a modest amount that goes towards running our day-to-day operations and paying for our invaluable team moderators that are passionate about teaching YOU!
That’s about it. We could charge more, but we have a pay it forward, give back mentality. It’s not about the money. The best and most important thing for us is YOU. We want to feel good about what we do, and the results and reviews speak for themselves.
Those emails we get, the feedback, the success we see. That is what our educational trading community is all about. We hold no secrets back. Our trading edge is your trading edge.
STOCK TRAINING DONE RIGHT
We don’t care what your motivation is to get training in the stock market. If it’s money and wealth for material things, money to travel and build memories, or paying for your child’s education, it’s all good. We know that you’ll walk away from a stronger, more confident, and street-wise trader.
In our stock trading community, you’re going to get it all. Futures, options trading, and stocks. Not just penny stocks either. Small, mid, and large caps. Each day we have several live streamers showing you the ropes, and talking the community though the action.
There’s no catch, no smoke or mirrors. What you see is what you get. If you’re looking to change your life, or someone else’s, we’re here to help you reach that goal. Get started learning day trading, swing trading, options, or futures trading today!
Click Hereto start your 7-day free trial.
TRADING STOCKS IN THE BULLISH BEARS COMMUNITY
Yes, we work hard every day to teach day trading, swing trading, options futures, scalping, and all that fun trading stuff. But we also like to teach you what’s beneath the Foundation of the stock market.
Tell you the TRUTH about how the market works. The importance of controlling your emotions and having a proper mindset when trading. We’re really passionate about teaching you this stuff!
Money isn’t our #1 priority in life. YOU are. Our members come first. Making sure you get comfortable with trading is our priority.
We have members that come from all walks of life and from all over the world. We love the diversity of people, just like we like diversity in trading styles. It creates an environment much like a university or college.
TRADING ROOMS AND LIVE STOCK TRAINING
Each day our team does live streaming where we focus on real-time group mentoring, coaching, and stock training. We teach day trading stocks, options or futures, as well as swing trading. Our live streams are a great way to learn in a real-world environment, without the pressure and noise of trying to do it all yourself or listening to “Talking Heads” on social media or tv.
We will help to challenge your ideas, skills, and perceptions of the stock market. You will learn and grow as a trader. Every day people join our community and we welcome them with open arms. We are much more than just a place to learn how to trade stocks.
Feel free to ask questions of other members of our trading community. The Bullish Bears are a very helpful crew. We realize that everyone was once a new trader and needs help along the way on their trading journey and that’s what we’re here for. To give you a hand up along your trading journey.
Click Hereto try our trading community free for 7 days.
FREE ONLINE TRADING COURSES
If you’ve looked for trading education elsewhere then you’ll notice that it can be very costly.
We are opposed to charging ridiculous amounts to access experience and quality information.
That being said, our website is a great resource for traders or investors of all levels to learn about day trading stocks, futures, and options. Swing trading too!
On our site, you will find thousands of dollars worth of free online trading courses, tutorials, and reviews.
We put all of the tools available to traders to the test and give you first-hand experience in stock trading you won’t find elsewhere.
Our content is packed with the essential knowledge that’s needed to help you to become a successful trader.
It’s important to treat day trading stocks, options, futures, and swing trading like you would with getting a professional degree, a new trade, or starting any new career.
Invest the proper time into your Trading Education and don’t try to run before you learn to crawl. Trading stocks is not a get-rich-quick scheme. It’s not gambling either, though there are people who treat it this way. Don’t be that person!
STOCK TRADING COURSES FOR BEGINNERS
The Bullish Bears team focuses on keeping things as simple as possible in our online trading courses and chat rooms. We provide our members with courses of all different trading levels and topics.
If you’re a beginner, intermediate level, or looking for expert trading knowledge…we’ve got you covered.
We have a basic stock trading course, swing trading course, 2 day trading courses, 2 options courses, 2 candlesticks courses, and broker courses to help you get started. Free.
Just choose the course level that you’re most interested in and get started on the right path now. Become a leader, not a follower. When you’re ready you can join our chat rooms and access our Next Level training library. No rush. We’re here to help.
Click Hereto take our free courses.
