CANDLES
OPEN : Where Stock Price Opened : OPEN(80)
CLOSE : Where Stock Price Closed : CLOSE(100)
HIGH : Where Stock Price Touches High and then move : HIGH(105)
LOW : Where Stock Price Touches Low and then move : LOW(75)
SINGLE CANDLE STICKS PATTERNS
1) Hammer and Hanging Man
• In this pattern top side Wick/Upper Shadow, Body Small, Lower Shadow > 2x(Body)
• Candle Stick patterns indicates to reverse the TRENDS
• Bullish Candle Stick Patterns always on Down Trends OR A Bottom of the CHART
• Bearish Candle Stick Patterns always on Higher Trends OR A Top of the CHART
• Hammer Builds Bottom of the chart or a down trend means possible market goes UP
• Hanging Man Builds Top of the chart or a upper trend means possible market goes
down
• High trend Hammer becomes the Hanging Man And Same in Opposite Trend Hanging
Man becomes Hammer
• Colour Doesn't Matter only matters where it builds
1.1) Hammer Candle Stick :
1.1) Hanging Man Candle Stick
1) Inverted Hammer and Shooting Star
• Candle Stick patterns indicates to reverse the TRENDS
• Bullish Candle Stick Patterns always on Down Trends OR A Bottom of the
CHART
• Bearish Candle Stick Patterns always on Higher Trends OR A Top of the
CHART
• Inverted Hammer Builds Bottom of the chart or a down trend means possible
market goes UP
• Shooting Star Builds Top of the chart or a upper trend means possible market
goes down
• High trend Inverted Hammer becomes the Shooting Star And Lower Trend
becomes Inverted Hammer
• Colour Doesn't Matter only matters where it builds
2.1) Inverted Hammer
2.2) Shooting Star
2) Dragonfly Doji And Gravestone Doji
• Dragon Fly Doji means seller try to low the price and buyer try
to high price and then buyer take the control
• Gravestone Doji means buyer try to high the price and seller
try to low price and then seller take the control
3.1) Dragonfly Doji
3.2) Grave stone Doji
3) Bullish Spinning Top and Bearish Spinning Top
• In Bullish Spinning Top buyers and sellers both try to apply pressure but end of the
time buyers win
• In Bearish Spinning Top buyers and sellers both try to apply pressure but end of the
time sellers win
4.1) Bullish Spinning Top
4.2) Bearish spinning Top
4) Bullish Marubozu And Bearish Marubozu
5.1) Bullish Marubozu
5.2) Bearish Marubozu
DOUBLE CANDLE STICKS PATTERNS
1) Bullish Kicker & Bearish Kicker
1.1) Bullish Kicker
1.2) Bearish Kicker
2) Bullish Engulfing & Bearish Engulfing
2.1) Bullish Engulfing
2.2) Bearish Engulfing
3) Bullish Harami & Bearish Harami
3.1) Buiish Harami
3.2) Bearish Harami
4) Piercing Line & Dark Cloud Cover
4.1) Piercing Line
4.2) Dark Cloud Cover
5) Twizzer Bottom and Twizzer Top
• In Twizzer Bottom Both Candles LOW Same and InTwizzer Top Both Candles High
Same
• Any Candles become Twizzer Bottom and Twizzer Top Because in Twizzer only
matters are both candles low and high are same for Twizzer
5.1) Twizzer Top
5.2) Twizzer Bottom
Three & More Candle Sticks patterns
1) Morning Star and Evening Star
• In Morning Star Gap-Up Opening Required
• In Evening Star Gap-Down Opening Required
1.1) Morning Star
1.2) Evening Star
2) Bullish Abandoned Baby and Bearish Abandoned Baby
• Main difference between Morning Star and Abandoned Baby is the Gap between the
candles.
2.1) Bullish Abandoned Baby
2.2) Bearish Abandoned Baby
3) Three White Soldiers & Three Black Crows
3.1) Three White Soldiers
3.2) Three Black Crows
4) Bullish Three Line Strike and Bearish Three Line Strike
• NOTE : Trends maybe reversal (depends on where patterns create)
• Bullish Three Line Strike : On Top of the chart Trend Bearish
• Bearish Three Line Strike : On Bottom of the chart Trend Bullish
4.1) Bullish Three Line Strike
4.2) Bearish Three Line Strike
5) Three Outside Up and Three Outside Down
• In this pattern bullish engulfing pattern creates and next candle’s close is up from
the bullish engulfing
• In this pattern bearish engulfing pattern creates and next candle’s close is down
from the bearish engulfing
5.1) Three Outside Up
5.2) Three Outside Down
6) Three In-side Up and Three In-side Down
• In this pattern bullish harami pattern creates and next candle’s close is up from the
bullish harami
• In this pattern bearish harami pattern creates and next candle’s close is down from
the bearish harami
6.1) Three In-side Up
6.2) Three In-side Down
Reversal Chart Patterns
Double Top (Bearish Reversal Pattern)
• Stoploss Is Neckline
• Target is Neckline to Resistance
2) Double Bottom (Bullish Reversal Pattern)
• Stoploss is Neckline
• Target is Neckline to Support
3) Triple Top (Bearish Reversal Pattern)
• Stoploss Is Neckline
• Target is Neckline to Resistance
4) Triple Bottom (Bullish Reversal pattern)
• Stoploss is Neckline
• Target is Neckline to Support
5) Head & Shoulders Pattern (Bearish Reversal Pattern)
• Target is Neckline to Target -1 and then Target-2
• Stoploss is Neckline
6) Reverse Head & Shoulders Pattern (Bullish Reversal Pattern)
• Target is Neckline to Target -1 and then Target-2
• Stoploss is Neckline
7) Rising Wedge (Bearish Reversal Pattern)
• Stoploss is Resistance line
• Target is Size of the Wedge
8) Falling Wedge (Bullish Reversal Pattern)
• Stoploss is Support line
• Target is Size of the Wedge
9) Bearish Expanding Triangle
• Stoploss is Support line
• Target is Size of the Wedge
10) Bullish Reversal Pattern
• Stoploss is Resistance line
• Target is Size of the Wedge
Continuation Chart Patterns
1) Bullish Rectangle (Bullish Continuation Pattern)
• THIS IS NOT A DOUBLE BOTTOM CHART PATTERN (REVERSEAL CHART PATTERN)
BECAUESE IN DOUBLE BOTTOM BREAKS THE NACK LINE. AND IN THIS PATTERN
BREAKS THE RESISTANCE LINE
• TARGET IS SIZE OF RECTANGLE
• STOPLOSS IS (SIZE OF RECTANGLE / 2)
2) Bearish Rectangle (Bearish Continuation Pattern)
• TARGET IS SIZE OF RECTANGLE
• STOPLOSS IS (SIZE OF RECTANGLE / 2)
3) Bullish Flag (Bullish Continuation Pattern)
• TARGET IS = SIZE OF THE POLE (~50% POLE SIZE)
• STOP LOSS = SUPPORT LINE
4) Bearish Flag (Bearish Continuation Pattern)
• TARGET IS = SIZE OF THE POLE (~50% POLE SIZE)
• STOP LOSS = SUPPORT LINE
5) Bullish Pennant (Bullish Continuation Pattern)
6) Bearish Pennant (Bearish Continuation Pattern)
7) Bullish Symmetrical Triangle (Bullish Continuation Pattern)
• Stop Loss Is Breakout Candles Low
8) Bearish Symmetrical Triangle (Bearish Continuation Pattern)
• Stop Loss Is Breakout Candles Low
9) Cup & Handle Pattern (Bullish Continuation Pattern)
• Only Valid when bottom shape is Like "U" Not "V".
• Handle = size of cup / 2
• Handle is not Bigger than 1/3 of the cup
• SL = Break-out Candle's low
10) Reverse Cup & handle (Bearish Continuation Pattern)
• Only Valid when Top shape is Like "U" Not "V".
• Handle = size of cup / 2
• Handle is not Bigger than 1/3 of the cup
• SL = Break-out Candle's low
Neutral Chart Patterns
1) Ascending Triangle
• When candle breaks resistance it works as bullish
• When candle breaks support it works as bearish
• Stop Loss is Resistance Level or (Resistance - BreakOut candle's high /2)
Bullish Momentum
Bearish Momentum
2) Descending Triangle
• When candle breaks Trend line it works as bullish
• When candle breaks support it works as bearish
• Stop Loss is Support Level or (BreakOut candle's high - Support level / 2)
Bearish Momentum
Bullish Momentum
3) Symmetrical Contracting Triangle
Bearish Momentum
Bullish Momentum
4) Symmetical Expanding Triangle
Bullish Momentum
Bearish Momentum
