Candlesticks Patterns
Basic Candlestick
A Candlestick contains four components: open, high, low, and close.
Doji
One candle, where the opening and closing prices are the same.
Identifying the pattern on a chart:
Bullish Engulfing
This signal is a strong reversal signal when it appears at the bottom of a price movement.
Identifying the pattern on a chart:
Bearish Engulfing
This signal is a strong reversal signal when it appears at the top of a price movement.
Identifying the pattern on a chart:
Bullish Hammer
Hammers occur in a downtrend and are considered bullish signals.
Identifying the pattern on a chart:
Inverted Hammer
This signal is a strong reversal signal when it appears at the bottom of a price movement. The hammer candle color is irrelevant.
Identifying the pattern on a chart:
Hanging Man
This signal occurs in an uptrend and is considered a bearish pattern.
Identifying the pattern on a chart:
Bullish Piercing Line
A two-candle reversal signal formation that indicates a bullish pattern when it appears at bottom of a price movement.
Identifying the pattern on a chart:
Bearish Dark Cloud
The dark cloud cover is a bearish reversal pattern that occurs during an uptrend.
Identifying the pattern on a chart:
Bullish Harami
Indicates that the market is at a point of indecision and a trend change, or a reversal, is possible.
Identifying the pattern on a chart:
Bearish Harami
Indicates that the market is at a point of indecision and a trend change, or a reversal, is possible.
Identifying the pattern on a chart:
Bullish Morning Star
The morning star pattern is a signal of a potential bottom in the market.
Identifying the pattern on a chart:
Bearish Evening Star
The evening star pattern is a signal of a potential top in the market.
Identifying the pattern on a chart:
Bullish Kicker
A two candle signal, indicating a radical change in investor sentiment towards the bullish side.
Identifying the pattern on a chart:
Bearish Kicker
A two candle signal, indicating a radical change in investor sentiment towards the bearish side.
Identifying the pattern on a chart:
Bearish Shooting Star
The shooting star is a bearish signal that occurs at short-term tops in the market.
Identifying the pattern on a chart:
Three Candle Drop
This three candle acceleration is an indication of a price crash can signal a bottoming action.
Identifying the pattern on a chart:
Three Candle Connection
This pattern occurs in a sideways market testing lows and highs, and can indicate either a reversal or explosive move in the same direction.
Identifying the rising candle pattern on a chart:
Identifying the falling candle pattern on a chart:
Three Method
This pattern is confirmation of a continuation of (up or down) a trend.
Identifying the pattern on a chart:
Rising Method
Falling Method
