Candlestick Patterns – Important Guide
1. Single Candlestick Patterns
• Doji – Market indecision, price may reverse.
• Hammer – Bullish reversal at bottom of downtrend.
• Hanging Man – Bearish reversal at top of uptrend.
• Inverted Hammer – Bullish reversal, needs confirmation.
• Shooting Star – Bearish reversal at top.
• Spinning Top – Indecision in market trend.
• Marubozu – Strong bullish or bearish candle with no wicks.
2. Multiple Candlestick Patterns
2(a) Bullish Reversal Patterns
• Bullish Engulfing – Big green candle covers previous red candle.
• Piercing Pattern – Green candle closes above mid of previous red.
• Morning Star – 3-candle bullish reversal after downtrend.
• Three White Soldiers – 3 consecutive strong green candles.
• Tweezer Bottom – Two candles with equal lows, reversal signal.
2(b) Bearish Reversal Patterns
• Bearish Engulfing – Big red candle covers previous green.
• Dark Cloud Cover – Red candle closes below mid of green candle.
• Evening Star – 3-candle bearish reversal at top.
• Three Black Crows – 3 consecutive strong red candles.
• Tweezer Top – Two candles with equal highs, reversal signal.
2(c) Continuation Patterns
• Rising Three Methods – Uptrend pause, then continuation.
• Falling Three Methods – Downtrend pause, then continuation.
• Tasuki Gap – Continuation with gap candle.
• Mat Hold – Strong continuation pattern.
