Candle Stic Pattern

8/20/2019 Candle Stic Pattern

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Continuation PatternsReversal Patterns

Bullish

Continuation Patterns

Bearish


Bearish Reversal

Patterns

Bullish Reversal

Patterns

1. Rising Three Methods

2. Three Line Strike

1. Falling Three Methods

2. Downside Tasuki

3. Three Line Strike4. Side by Side White

. Lines!. "n #e$k

%. &n #e$k

8. Thrusting

(3)

Weak

Bearish

Reversal

Patterns

(2)

Moderate

Bearish

Reversal

Patterns

(1)

Strong

Bearish

Reversal

Patterns

(3) Weak

Bullish

Reversal

Patterns

(2)

Moderate

Bullish

Reversal

Patterns

(1) Strong

Bullish

Reversal

Patterns

1. 'elt (old

2. (ara)i

1. 'elthold

2. *ra+estone Do,i

1. -bandoned 'aby

2. Dark loud o+er

3. /+ening Do,i Star

4. /+ening Star

1. -bandoned 'aby

2. Morning Do,i Star

1. 'reakaway

2. Do,i Star

3. Dragonly

Do,i

4. /nguling

. (a))er

1. -d+an$e 'lo$k

2. 'reakawayandlesti$k

3. Deliberation

4. Downside Tasuki


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Bullish Reversal Patterns

(1) Strong Bullish Reversal Patterns

1. -bandoned 'aby

2. Morning Do,i Star

3. Three "nside 0

4. Three &utside 0

. Three White Soldiers

(2) Moderate Bullish Reversal Patterns

1. 'reakaway

2. Do,i Star

3. Dragonly Do,i

4. /nguling

. (a))er


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!. Ladder 'otto)

%. Morning Star

. ier$ing Line

5. Three Stars in the South

16. Tristar.

(3) Weak Bullish Reversal Patterns

1. 'elthold

2. *ra+estone Do,i

3. "n+erted (a))er

4. Twee7ers 'otto)

Bearish Reversal Patterns

(1) Strong Bearish Reversal Patterns

1. -bandoned 'aby

2. Dark loud o+er

3. /+ening Do,i Star

4. /+ening Star

. Three "nside Down

!. Three &utside Down


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(2) Moderate Bearish Reversal Pattern

1. -d+an$e 'lo$k

2. 'reakaway andlesti$k

3. Deliberation

4. Downside Tasuki

. Dragonly Do,i

!. /nguling

%. Meeting Lines

. Tri Stars

5. *ra+estone Do,i

16. (anging Man

(3) Weak Bearish Reversal Patterns

1. 'elt (old

2. (ara)i

3. Shooting Star

4. (ara)i ross

. Twee7ers To



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819 'earish ontinuation atterns:

Falling Three Methods

Downside Tasuki

Three Line Strike

Side by Side White Lines

"n #e$k

&n #e$k

Thrusting

829 'ullish ontinuation atterns:Rising Three Methods

Three Line Strike

Candlestick Stock Analysis – Patterns

In our earlier article we talked about introduction to candlestick stock analysis. Now, we will go a bit deeper and understand the basic candlestick patterns which can be seen in

these types of charts used in stock analysis for beginners. Below are the simple types of candlesticks which are being used in this kind of analysis:

1. White candlestick – White candlesticks or hollow candlesticks signal uptrend moement. !hese occur in different lengths" the longer the body, the more significant theprice increase.

#. Black candlestick – Black candlesticks or filled candlesticks signal downtrend moement. !hese occur in different lengths" the longer the body, the more significant theprice decrease.

$. %ong lower shadow – %ong lower shadow gies a bullish signal. !he lower wick must be at least the body&s si'e" the longer the lower wick, the more reliable thesignal.

(. %ong upper shadow – %ong upper shadow gies a bearish signal. !he upper wick must be at least the body&s si'e" the longer the upper wick, the more reliable thesignal.

). *ammer – + hammer shows a bullish pattern during a downtrend. !he hammer has long lower wick and small or no body. haen head hammer shows a bullishpattern during a downtrend - a bearish pattern during an uptrend since it has no upper wick. !he *anging man hammer candlestick shows bearish pattern during anuptrend. It has long lower wick, small or no body" wick has the multiple length of the body.

. Inerted hammer – Inerted hammer signals bottom reersal" howeer confirmation must be obtained from ne/t trade. It may be either a white or black body. haenbottom inerted hammer signals bottom reersal, howeer confirmation must be obtained from ne/t trade. It has no lower wick. hooting star inerted hammer shows abearish pattern during an uptrend. It has small body, long upper wick, small or no lower wick.

0. pinning top white – pinning top white gies a neutral pattern. It gies a normal iew until seen with respect to the other candlestick patterns. pinning top black – imilar to spinning top white pattern and gies neutral pattern but in black candlestick. +gain becomes meaningful when sees in combination with

other candlestick patterns2. 3o4i – 3o4i is a neutral pattern with no body and only shadows, meaningful in combination with other candlestick patterns15. %ong legged do4i – !his is a type of 367I but hae long shadows. It signals a top reersal11. 3ragonfly do4i – +s in a normal 3o4i, there is no body and a 3ragonfly 3o4i signals trend reersal since it has no upper wick and long lower wick.1#. 8raestone do4i – 6pposite to 3ragonfly do4i and signals trend reersal. It has no lower wick and long upper wick1$. 9arubo'u white – 9arubo'u denotes dominant bullish trades and continued bullish trend. It has no upper or no lower wick.

http://stockmarketforbeginnersguide.com/candlestick-stock-analysis-patterns/http://stockmarketforbeginnersguide.com/candlestick-stock-analysis-introduction/http://stockmarketforbeginnersguide.com/candlestick-stock-analysis-introduction/http://stockmarketforbeginnersguide.com/http://stockmarketforbeginnersguide.com/http://stockmarketforbeginnersguide.com/candlestick-stock-analysis-introduction/http://stockmarketforbeginnersguide.com/http://stockmarketforbeginnersguide.com/candlestick-stock-analysis-patterns/


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1(. 9arubo'u black – 9arubo'u black denotes dominant bearish trades and continued bearish trend. It has no upper or no lower wick.

Candlestick Charting I: Basic Patterns

Learn the 11 Basic Candlestick Patterns, and which ones produce highly reliale, tradale indicators. !ou"ll also learn a #ew $apanese

words along the way%

& asolutely lo'e candlestick charting. (hy) *he +ain reasons why candlesticks outper#or+ any other types o# charts are ecause

you are ale to, 1 'isually depict stock data easily, 2 estalish strong price relationships and - catch possile re'ersals uickly.

*he third one has sa'ed +e +any, +any ti+es. Let/s take a look at a asic candle, which +ake up all candlestick charts, and +ake

sure we know where the open, high, low, and close are located0

http://education.wallstreetsurvivor.com/Candlestick-Chartinghttp://education.wallstreetsurvivor.com/Candlestick-Charting


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A green or white candle signies a positi'e up day and a red or lack candle signies a negati'e down day. 3or this article, & will

use 4green5 candles #or positi'e days and 4red5 candles #or negati'e days. Let this sink in e#ore continuing. *he third pattern to

the #ar right is called a do6i, which signals indecision, and one o# the +any asic patterns you will e learning today.

*here are 11 categories o# asic and +a6or candlestick patterns. *hese are the +ost co++on patterns you/ll e seeing as you

practice going through your charts. & will gi'e a description, a real7li#e ea+ple, and indicate 4reliaility5 le'els #or each pattern0

etre+ely high, high, +ediu+, low, etre+ely low. 9ere are the categories0


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Doji

:o6i are days where the open and close are identical or nearly identical. *he candle will look like a cross as a result. *his is the

pri+ary signal #or indecision and a potential re'ersal +ay e underway. (hat/s i+portant to note is that do6i in the +iddle o# a

trend +ark continuations o# that trend, while do6i located at the otto+ o# a trend o'iously +ark re'ersals. (hene'er you see a

do6i, pay special attention to its location within a chart.

*here are three types o# do6i0 gra'estone, dragon;y, and long7legged. A gra'estone do6i si+ply +eans that a stock opened at the

low o# the day, reached a high, ut #ell ack down to close at


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Bullish engulng patterns are #or+ed when a green candle gaps down opens lower and closes +uch higher than the open o# the

pre'ious day/s red candle. you look at the pattern, you can see how the green candle co+pletely 4engul#s5 the red candle. *his

shows that there was intense uying pressure so+eti+e during the day to negate the selling pressure at the open.

Bearish engulng patterns are 6ust the opposite and they are #or+ed when a red candle gaps up opens higher and closes +uch

lower than the open o# the pre'ious day/s green candle. *his shows an i++ediate senti+ent change during the day and cancelled

out the pre'ious day/s gains.

Harami

9ara+i +eans 4pregnant5 in $apanese and the ter+ is deri'ed y oser'ing a s+all candle 4within5 a larger candle. *he long

candle is the 4+o+5 and the s+all candle is the 4ay5. *he second or s+aller candle/s open and close +ust oth e located

within the open7close range o# the rst or long candle. *his pattern is also known as an 4inside day5. A hara+i can signal a

slowdown in the current trend and a possile re'ersal. 9owe'er, the reliaility o# the pattern is low and & reco++end that you wait#or the net day to 4conr+5 a re'ersal.


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Kicker

>ickers are perhaps the +ost i+portant and power#ul re'ersal signals in candlestick charting. *hey represent the +ost dra+atic

and sudden shi#t in senti+ent. >icker candles are +ost co++only co+pared to reakaway gaps. *he longer the candle, the +ore

power#ul the price re'ersal. *hese signals ha'e the aility to co+pletely end a trend and start a new one, all in a single day. *his is

why they are so power#ul and o# course, their reliaility is etre+ely high.

A ullish kicker is #or+ed when the rst candle is red and the second candle is green ut the open and close o# the green candle

eceeds the open7close range o# the pre'ious day/s red candle. *his is ecause the gap up is #orce#ul to the upside. *he earish

kicker is 6ust the opposite where a red candle gaps down so hard, that the open7close range are well elow the open7close range o#

the pre'ious day/s green candle.


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Dark Cloud Cover

*he dark cloud co'er is a earish re'ersal signal. &t consists o# a green and red candle and the red candle +ust gap up open

higher ao'e the green candle. (hat happens is that the ar turns into a red candle and +ust close at least ?@ elow the +id7point o# the green candle. *he dark cloud co'er/s reliaility is +ediu+.


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Piercing

*he piercing pattern is the opposite o# the dark cloud co'er and it is a ullish re'ersal pattern. *his pattern also consists o# a green

and red candle ut the green candle +ust gap down open lower elow the red candle. *his green candle +ust close at least ?@

ao'e the +id7point o# the red candle. *he piercing pattern/s reliaility is +ediu+.

Shooting Star

*he shooting star is a earish re'ersal pattern. &t consists o# a green candle and during the day it was a long candle, ut #or so+e

reason, there was a sell7o that 4sha'ed down5 the long candle y at least 2


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Hammer & Hanging Man

Both patterns are re'ersal patterns. *he 9a++er occurs at the otto+ o# a downtrend and a hanging +an occurs at the top o# an

up trend. (hat happens is that these candles open, sell o during the day ut so+ehow +anage to rally ack close to their open.

*he shadow has to e at least 2


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Morning Star


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*he +orning star is a ullish re'ersal pattern at the end o# a downtrend. *his is a three candle #or+ation with the rst candle eing

red, the second neutral, and the third, green. *he second candle can e anything, ut in +ost cases, it is a do6i. (hat happens here

is that the downtrend is ehausted and there is a lack o# sellers pressuring the stock down. *he second day, eing an indecisi'e

day, eco+es 4+iddle ground5. the ulls win the net day, the green candle co+pletes the +orning star pattern. *he third candle

+ust close at least ?@ ao'e the +id7point o# the red candle.

*he +orning star, and its counterpart, the e'ening star, are two o# the most highly reliable reversal patterns in candlestick

charting. 3ro+ +y own eperience, the #ailure rates are etre+ely low and the +orning star and e'ening star are two o# +y +ost

sought7a#ter patterns.

Evening Star

*he e'ening star is the co+plete opposite o# the +orning star and it is a earish re'ersal pattern. At the end o# an up trend, the

stock ehausts itsel# and +ay #or+ a do6i top, signaling a stale+ate etween the ulls and ears. *his is an indication that the

+a6ority o# traders ha'e ought the stock i# there is no price progress +ade. *he third candle, a red one, indicates panic7dri'en

selling as a result o# a lack o# uyers. *he downtrend usually continues #or uite so+e ti+e. Dpposite o# the +orning star, the third

red candle +ust close at least ?@ elow the +id7point o# the green candle.


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So now you know the asic and co++on candlestick patterns that occur. !ou/ll e ready #or the se'eral doEen ad'anced candlestick

patterns that will co+plete your understanding o# the +a6or continuation, re'ersal, secondary and tertiary signals. & won/t throw

e'erything at you all at once, ut they will e di'ided into separate articles and they will e spaced out. & rst want you to learn and

get accli+ated to these 11 patterns e#ore we +o'e on. *he est way to do this is to set aside so+e ti+e #or your trading

education and look at se'eral charts and identi#y so+e patterns. you need help, you can always lea'e +e a +essage on +y (all.
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Candle Stic Pattern

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