The first one in the following sections is a BULLISH trend and the second one is the BEARISH trend
The first candle should be a long bearish candle, followed by a short bullish candle or bearish Doji which then followed by a bullish candle. The pattern is considered relevant if the last/third candle is halfway up the body of the first candle.
The first candle should be a long bullish candle, followed by a short bearish candle or bullish Doji which then followed by a bearish candle. The pattern is considered relevant if the last/third candle is halfway down the body of the first candle.
It is a candlestick chart indicator for a reversal in a bear price movement. The formation as shown is when a long bearish candle is followed by a small bullish candle that lies in the first candle body. Which goes by the name harami which means pregnant in the Japanese language.
It is a candlestick chart indicator for a reversal in a bull price movement. The formation as shown is when a long bullish candle is followed by a small bearish candle that lies in the first candle body. Which goes by the name harami which means pregnant in the Japanese language.
The bullish engulfing pattern is a two-candle reversal pattern. The second candle completely ‘engulfs’ the real body of the first one, without regard to the length of the tail shadows.
The bearish engulfing pattern is a two-candle reversal pattern. The second candle completely ‘engulfs’ the real body of the first one, without regard to the length of the tail shadows.
Three White Soldiers
The pattern consists of three consecutive long-bodied candlesticks that open within the previous candle’s real body and a close that exceeds the previous candle’s high. These candlesticks should not have very long shadows.
Three Black Crows
The black crow pattern consists of three consecutive long-bodied candlesticks that have opened within the real body of the previous candle and closed lower than the previous candle.
Following a downtrend, the dragonfly candlestick may signal a price rise is forthcoming. Following an uptrend, it shows more selling is entering the market and a price decline could follow. In both cases, the candle following the dragonfly doji needs to confirm the direction.
It is a bearish reversal candlestick pattern that is formed when the open, low, and closing prices are all near each other with a long upper shadow. The long upper shadow suggests that the bullish advance in the beginning of the session was overcome by bears by the end of the session, which often comes just before a longer-term bearish downtrend.
The Inverted Hammer candlestick formation occurs mainly at the bottom of downtrends and can act as a warning of a potential reversal upward. It is important to note that the Inverted pattern is a warning of potential price change, not a signal, in and of itself, to buy.
A hanging man candlestick occurs during an uptrend and warns that prices may start falling. The candle is composed of a small real body, a long lower shadow, and little or no upper shadow. The hanging man shows that selling interest is starting to increase.
A piercing pattern marks a potential short-term reversal from a downward trend to an upward trend. The pattern includes the first day opening near the high and closing near the low with an average or larger-sized trading range. It also includes a gap down after the first day where the second day begins trading, opening near the low and closing near the high. The close should also be a candlestick that covers at least half of the upward length of the previous day’s red candlestick body.
Dark cloud cover
The pattern is significant as it shows a shift in the momentum from the upside to the downside. The pattern is created by an up candle followed by a down candle. Traders look for the price to continue lower on the third candle. This is called confirmation. The close should also be a candlestick that covers at least half of the downward length of the previous day’s green candlestick body.
Bullish Abandoned baby
The Bullish Abandoned Baby should start with a black candlestick that is not short, and it must continue with a Doji that makes a gap away from the prior candlestick (including shadows). The third day of the pattern is a white candlestick.
Bearish Abandoned baby
A bearish abandoned baby is a specialized candlestick pattern consisting of three candles, one with rising prices, a second with holding prices, and a third with falling prices. Technical analysts expect that this pattern signals at least a short-term reversal in a currently upward trending price.
Gap Up Opening
A gap up opening indicates buyer’s enthusiasm. Buyers are willing to buy stocks at a price higher than the previous day’s close.
Gap Down Opening
Similar to gap up opening, a gap down opening shows the enthusiasm of the bears. The bears are so eager to sell, that they are willing to sell at a price lower than the previous day’s close.