How Many Candlestick Patterns Are There? The Complete List and Analysis

The Shooting Star is a bearish reversal pattern that forms after an advance and in the star position, hence its name. A Shooting Star can mark a potential trend reversal or resistance level. The candlestick forms when prices gap higher on the open, advance during the session, and close well off their highs.

A bearish reversal pattern consisting of three consecutive long black bodies where each day closes at or near its low and opens within the body of the previous day. A bearish reversal pattern that continues the uptrend with a long white body. The next day opens at a new high, then closes below the midpoint of the body of the first day.

The inverted hammer is a 1-bar bullish candlestick pattern.It looks like a letter “T” upside-down. Statistics to prove if the Inverted Hammer pattern really works What is the Inverted Hammer candlestick pattern? The separating lines candlestick is a trend continuation pattern consisting of two opposite-colored candlesticks. The closing of the first candlestick will be equal to the opening price of the second candlestick. The falling window is a candlestick pattern that consists of two bearish candlesticks with a down gap between them. The down gap is a space between the high of the recent candlestick and the low of the previous candlestick.

Bullish Harami Cross

The resulting candlestick looks like a “T” due to the lack of an upper shadow. Dragonfly doji indicate that sellers dominated trading and drove prices lower during the session. By the end of the session, buyers resurfaced and pushed prices back to the opening level and the session high. The upper and lower shadows on candlesticks can provide valuable information about the trading session.

  • While the basic candlestick patterns may provide some insight into what the market is thinking, these simpler patterns often generate false signals because they are so common.
  • The buyers fought back, and the end result is a small, dark body at the top of the candle.
  • A doji line that develops when the Doji is at, or very near, the low of the day.
  • According to the Wyckoff theory, price action moves in a cycle of 4 phases – markdown, accumulation, markup, and distribution.
  • For example, candlesticks can be any combination of opposing colors that the trader chooses on some platforms, such as blue and red.
  • Before you start trading, it’s important to familiarise yourself with the basics of candlestick patterns and how they can inform your decisions.

Such occurrences rattle the traders who were betting on the prior trend continuing, often forcing them out of their positions as their stop-loss levels are hit. This idea comes from a simpler candlestick concept called thrusting lines. For example, if there is an uptrend, if a down candle forms but stays within the upper half of the last upward candle, little damage is done to the trend. The bullish harami is the opposite of the upside-down bearish harami. A downtrend is in play, and a small real body (green or white) occurs inside the large real body (red or black) of the previous day.

The Basics Of A Candlestick

Three white soldiers is a bullish trend reversal candlestick pattern that consists of three bullish candlesticks making higher highs and high lows. These candlesticks are arranged in a series, with smaller wicks and shadows that signify a large momentum of sellers. The bearish piercing pattern is a bearish trend reversal candlestick pattern that consists of two candlestick pattern dictionary opposite color candlesticks with a price gap in between them. The bearish candlestick in this pattern closes below the 50% mark of the bullish candlestick. Over time, individual candlesticks form patterns that traders can use to recognise major support and resistance levels. ​A bearish engulfing pattern develops in an uptrend when sellers outnumber buyers.

Modified Hikkake Candlestick Pattern

This candlestick has long upper and lower shadows with the Doji in the middle of the day’s trading range, clearly reflecting the indecision of traders. These candlestick patterns can be used in conjunction with technical tools to produce profitable results. The Downside Tasuki gap is a continuation candlestick pattern that consists of three candlesticks with a downside gap.

Six bearish candlestick patterns

Further buying pressure, and preferably on expanding volume, is needed before acting. Such confirmation could come from a gap up or long white candlestick. Hammers are similar to selling climaxes, and heavy volume can serve to reinforce the validity of the reversal.

Harami

Statistics to prove if the Kicking pattern really works The kicking candlestick pattern is a two-bar… The counterattack candlestick pattern is a reversal pattern that indicates the upcoming reversal of the current trend in the market. There are two variants of the counterattack pattern, the bullish counterattack pattern and the bearish counterattack pattern.

If it is followed by another up day, more upside could be forthcoming. ​An engulfing pattern on the bullish side of the market takes place when buyers outpace sellers. This is reflected in the chart by a long white real body engulfing a small black real body.

Doji and spinning tops have small real bodies, meaning they can form in the harami position as well. There are also several 2- and 3-candlestick patterns that utilize the harami position. The Hammer candlestick pattern is a bullish reversal pattern that indicates a potential price reversal to the upside. It appears during the downtrend and signals that the bottom is near.

These candlesticks form in series with small wicks and shadows representing a massive momentum of sellers. In this pattern, the bearish candlestick will close below the 50% level of the previous bullish candlestick. A bullish trend reversal candlestick, the Bullish Kicker Candlestick, consists of two candlesticks that are opposite colors with a gap. The trend reversal pattern of a candlestick called bearish belt hold changes the bullish trend to bearish.. A long bearish candlestick at the top is formed after three bullish candlesticks have been created.