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58 Candlestick Patterns PDF Manual:

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December 9, 2023
Categories: Candlestick Patterns
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Candlestick patterns are a key part of trading. They are like a special code on a chart that shows
how prices are moving. Imagine each pattern as a hint about what might happen next in the stock
market.

History of Candlestick Charting

Candlestick charting started over 200 years ago in Japan with rice traders. A smart trader named
Munehisa Homma first used it. He saw that prices didn’t just change because of supply and
demand, but also because of how traders felt. This idea led to the birth of candlestick charts.
Much later, a man named Steve Nison introduced these charts to the Western world.

Why Candlestick Patterns Matter in Trading

Candlestick patterns are like a quick snapshot of the market’s mood. Each pattern is made of
candles, and every candle tells a story about the price – where it opened, where it closed, how high
and low it went. This helps traders guess if prices might go up or down.

Think of it this way: If you see a pattern that usually means prices will go up, you might decide to
buy. If you see one that means prices might go down, you might sell. These patterns work for all
kinds of trading – whether you’re looking at prices every day or once in a while.

In short, candlestick patterns are important because they help traders understand the market
better and make smarter decisions.

Basics of Candlestick Patterns

Candlestick patterns are made up of individual “candles,” each showing the price movement for a
certain time period. Let’s break down the basics:

Basic Components of a Candlestick

1. Body: The thick part of the candle. It shows the difference between the opening and closing
prices. If the close is higher than the open, the body is often colored in (or black), showing
prices went up. If the close is lower, the body might be empty (or white), showing prices
went down.
2. Shadow: These are the thin lines above and below the body. They show the highest and
lowest prices during that time period. The top shadow shows the high, and the bottom
shadow shows the low.
3. Open: This is where the price started at the beginning of the time period. It’s either the top
or bottom of the body, depending on whether prices went up or down.
4. Close: This is where the price ended at the end of the time period. Like the open, it’s at the
top or bottom of the body.
5. High: The peak point of the top shadow. It’s the highest price in that time period.
6. Low: The bottom of the lower shadow. It’s the lowest price in that time period.
Bullish and Bearish Candles
Bullish Candles: These are candles where the closing price is higher than the opening price.
They suggest that buyers are in control and prices might go up. They are often colored in or
black.
Bearish Candles: These are candles where the closing price is lower than the opening price.
They suggest that sellers are in control and prices might go down. They are often empty or
white.

Types of Candlestick Patterns

Candlestick patterns can be grouped into four main types based on how many candles they
consist of. Each type can tell us something different about the market.

Single Candlestick Patterns

These are formed by just one candle. They can give quick signals about the market’s mood.
Examples include:

1. Bearish Marubozu
2. Bullish Marubozu
3. Inside Bar
4. Shooting Star
5. Inverted Hammer
6. Gravestone Doji
7. Dragonfly Doji
8. Doji Star
9. Doji Candlestick
10. Spinning Top
11. Long Legged Doji
12. Takuri Candlestick
13. Closing Marubozu
14. Hammer
15. Hanging Man
16. Key Reversal Bar
17. Bullish Belt Hold
18. Harami Cross
 19. High Wave
20. Kicking Candlestick
21. Short Line
22. Cradle Candlestick

Double Candlestick Patterns

These patterns are made up of two candles and often signal stronger market moves than single
patterns. Examples include:

1. Dark Cloud Cover

2. Bearish Engulfing
3. Bullish Engulfing
4. Piercing Line
5. Thrusting Candlestick
6. Matching Low
7. In-neck Candlestick
8. On-neck Candlestick
9. Stick Sandwich
10. Above The Stomach

Triple Candlestick Patterns

These are formed by three candles and are usually stronger indicators than single or double
patterns. Examples include:

1. Bullish Morning Doji Star

2. Bearish Evening Doji Star
3. Three Black Crows
4. Abandoned Baby Candlestick
5. Three Inside Down
6. Three Inside Up
7. Three-Line Strike
8. Three Outside Up
9. Three Outside Down
10. Three Stars in the South
11. Island Reversal
12. Three White Soldiers
 13. Stalled Candlestick

Complex Candlestick Patterns

These are formed by more than three candles and are usually stronger indicators than single or
double patterns. Examples include:

1. Falling Three Methods

2. Rising Three Methods
3. Hikkake Candlestick
4. Separating Lines
5. Mat Hold
6. The Modified Hikkake
7. Upside Gap Three Methods
8. Downside Gap Three Methods
9. Tasuki Gap
10. Breakaway Candlestick
11. Advance Block Candlestick
12. Ladder Top
13. Ladder Bottom Candlestick

List of 58 candlestick patterns

Here’s the explanation of each candlestick pattern, along with the trend and signal generated by
each candlestick pattern. i have explained almost all the candlestick patterns.

1. Bearish Marubozu Candlestick Pattern

Definition: The Bearish Marubozu Candlestick Pattern is a long, dark candle with no wicks,
indicating that the market opened at its high and closed at its low, reflecting strong selling
pressure throughout the period.
Signal: Indicates a continuation of the current downtrend.
Trend: Suggests a strong bearish sentiment.
 Learn more

2. Bullish Marubozu Candlestick Pattern

Definition: The Bullish Marubozu Candlestick Pattern is a long, full-bodied candle without
upper or lower shadows, showing that the market opened at its low and closed at its high,
signifying strong buying pressure.
Signal: Indicates a continuation of the current uptrend.
Trend: Suggests a strong bullish momentum.
 Learn more

3. Inside Bar Candlestick Pattern

Definition: The Inside Bar Candlestick Pattern consists of a smaller candlestick completely
contained within the range of the previous, larger candle, representing a period of
consolidation or indecision.
Signal: Often signals a potential breakout in either direction.
Trend: Can be found in both uptrends and downtrends as a continuation signal.
 Learn more

4. Shooting Star Candlestick Pattern

Definition: The Shooting Star Candlestick Pattern is a bearish candlestick with a long upper
shadow and a small lower body, appearing after an uptrend, suggesting that buyers
attempted but failed to push the market higher.
Signal: Signals a potential bearish reversal.
Trend: Often marks the end of an uptrend.
 Learn more

5. Inverted Hammer Candlestick Pattern

Definition: The Inverted Hammer Candlestick Pattern is a bullish candlestick that appears
during a downtrend, characterized by a long upper shadow and small lower body, indicating
that buyers attempted to push the price up.
Signal: Suggests a potential reversal of the downtrend.
Trend: Often signals the start of a bullish reversal.
 Learn more

6. Gravestone Doji Candlestick Pattern

Definition: The Gravestone Doji Candlestick Pattern features a long upper shadow and no
lower shadow, where the open, low, and close prices are the same, typically occurring at the
top of an uptrend.
Signal: Indicates a reversal from bullish to bearish sentiment.
Trend: Often marks the start of a bearish reversal.
 Learn more

7. Dragonfly Doji Candlestick Pattern

Definition: The Dragonfly Doji Candlestick Pattern has a long lower shadow and no upper
shadow, with the open, high, and close prices at the same level, suggesting that sellers
drove prices down, but buyers pushed it back up.
Signal: Indicates a potential bullish reversal.
Trend: Typically occurs at the bottom of a downtrend.

Learn more

8. Doji Star Candlestick Pattern

Definition: The Doji Star Candlestick Pattern is characterized by a small or nonexistent body
with open and close prices near the same, reflecting market indecision after a strong trend.
Signal: Can signal a potential reversal if it follows a long bullish or bearish trend.
Trend: Useful in identifying turning points in both uptrends and downtrends.
 Learn more

9. Doji Candlestick Pattern

Definition: The Doji Candlestick Pattern is marked by a very small or nonexistent body,
showing a balance between buying and selling pressures, leading to an open and close at
or very near the same price.
Signal: Often signals market indecision that can precede a significant price movement.
Trend: Appears in both bullish and bearish markets.
 Learn more

10. Spinning Top Candlestick Pattern

Definition: The Spinning Top Candlestick Pattern consists of a small body with long upper
and lower shadows, indicating significant indecision in the market.
Signal: Suggests uncertainty and, following a strong trend, potential reversal.
Trend: Appears in both uptrends and downtrends.

Learn more
11. Long Legged Doji Candlestick Pattern
Definition: This pattern features a small or nonexistent body with very long upper and lower
shadows, reflecting a highly volatile session with significant indecision.
Signal: Indicates a potential turning point in the market.
Trend: Often seen at market tops and bottoms, signaling possible reversals.

Learn more

12. Takuri Candlestick Pattern

Definition: The Takuri Candlestick Pattern has a small body with a very long lower shadow
and short or no upper shadow, suggesting that the market is testing for a bottom in a
downtrend.
Signal: Indicates that buyers are starting to take control, possibly leading to a bullish
reversal.
Trend: Typically found in downtrends and can signal a shift to an uptrend.
 Learn more

13. Closing Marubozu Candlestick Pattern

Definition: The Closing Marubozu Candlestick Pattern is a long candle with no or a very
short upper shadow and no lower shadow. If bullish, it closes at its high; if bearish, at its
low. This pattern indicates a strong commitment from buyers or sellers throughout the
trading session.
Signal: Suggests a strong continuation in the direction of the candle (bullish or bearish).
Trend: Often used to confirm the current trend’s strength.
 Learn more

14. Hammer Candlestick Pattern

Definition: The Hammer Candlestick Pattern appears during a downtrend and features a
small body at the top with a long lower shadow and little or no upper shadow, resembling a
hammer. It suggests that although selling pressure was present, buyers managed to drive
the prices back up.
Signal: Indicates a potential bullish reversal.
Trend: Typically signals the end of a downtrend.

Learn more

15. Hanging Man Candlestick Pattern

Definition: The Hanging Man Candlestick Pattern, similar in appearance to the Hammer,
occurs at the end of an uptrend. It has a small body at the upper end with a long lower
shadow and little or no upper shadow, indicating that selling pressure is starting to
increase.
Signal: Signals a potential bearish reversal.
Trend: Often marks the beginning of a potential downtrend.
 Learn more

16. Key Reversal Bar Candlestick Pattern

Definition: The Key Reversal Bar Candlestick Pattern is a single bar pattern that shows a
sharp reversal. It occurs when a candle has a higher high and a lower low than the previous
candle, but closes in the opposite direction.
Signal: Indicates a significant shift in market sentiment.
Trend: Suggests a potential trend reversal.
 Learn more

17. Bullish Belt Hold Candlestick Pattern

Definition: The Bullish Belt Hold Candlestick Pattern is a large bullish candle that opens at
its low and closes near its high with little or no upper shadow and no lower shadow. It
typically occurs during a downtrend.
Signal: Indicates a strong bullish reversal.
Trend: Often marks the beginning of a bullish trend.
 Learn more

18. Harami Cross Candlestick Pattern

Definition: The Harami Cross Candlestick Pattern is a two-day pattern where a small doji
candle follows a large-bodied candle. The doji is completely contained within the range of
the previous body, indicating a significant shift in market sentiment from the previous trend.
Signal: Suggests indecision and potential reversal of the current trend.
Trend: Can occur in both uptrends and downtrends.
 Learn more

19. High Wave Candlestick Pattern

Definition: The High Wave Candlestick Pattern is characterized by a small body with long
upper and lower shadows, indicating extreme uncertainty and volatility in the market.
Signal: Signals indecision and potential reversal if it appears after a consistent trend.
Trend: Appears in both bullish and bearish markets.
 Learn more

20. Kicking Candlestick Pattern

Definition: The Kicking Candlestick Pattern consists of two marubozu candles of opposite
colors. The first is usually part of the current trend, and the second, a gap away, signals a
sudden and strong shift in the opposite direction.
Signal: Indicates a very strong reversal.
Trend: Can signal a change in trend direction.

Learn more

21. Short Line Candlestick Pattern

Definition: The Short Line Candlestick Pattern is a short candle that appears as a small
body with short shadows. It represents a period of low trading volume and little price
movement.
Signal: Suggests a pause in the current trend or a period of consolidation.
Trend: Can appear in both bullish and bearish trends.
 Learn more

22. Cradle Candlestick Pattern

Definition: The Cradle Candlestick Pattern is a bullish reversal pattern that forms in a
downtrend. It consists of a series of declining small-bodied candles followed by a large
bullish candle, signifying a turnaround in sentiment.
Signal: Indicates a potential bullish reversal.
Trend: Often marks the beginning of a bullish phase after a downtrend.

Learn more
23. Dark Cloud Cover Candlestick Pattern
Definition: The Dark Cloud Cover Candlestick Pattern is a bearish reversal pattern formed
by a long bullish candle followed by a long bearish candle. The bearish candle opens above
the previous high but closes well into the body of the first candle.
Signal: Indicates a potential bearish reversal after an uptrend.
Trend: Suggests weakening of the current bullish trend.

Learn more

24. Bearish Engulfing Candlestick Pattern

Definition: The Bearish Engulfing Candlestick Pattern occurs when a small bullish candle is
completely engulfed by a following large bearish candle. It indicates that bears have
overtaken the bulls.
Signal: Signals a bearish reversal.
Trend: Often marks the start of a bearish trend.
 Learn more

25. Bullish Engulfing Candlestick Pattern

Definition: The Bullish Engulfing Candlestick Pattern is a reversal pattern that features a
small bearish candle completely engulfed by a larger bullish candle, suggesting a shift in
control from sellers to buyers.
Signal: Indicates a bullish reversal.
Trend: Typically appears at the bottom of a downtrend.
 Learn more

26. Piercing Line Candlestick Pattern

Definition: The Piercing Line Candlestick Pattern is a bullish reversal pattern consisting of a
long bearish candle followed by a long bullish candle. The second candle opens lower than
the first candle’s low but closes more than halfway into the first candle’s body.
Signal: Signals a potential reversal of the current downtrend.
Trend: Often indicates the beginning of a bullish trend.

Learn more

27. Thrusting Candlestick Pattern

Definition: The Thrusting Candlestick Pattern is a bearish continuation pattern that occurs
in a downtrend. It’s formed by a long bearish candle followed by a bullish candle that opens
within the body of the previous candle and closes just above the midpoint but not above the
high.
Signal: Indicates continuation of the current bearish trend.
Trend: Suggests further downward movement.
 Learn more

28. Matching Low Candlestick Pattern

Definition: The Matching Low Candlestick Pattern is a bullish reversal pattern seen in
downtrends. It consists of two consecutive bearish candles with the same closing price,
showing that the selling pressure is starting to wane.
Signal: Indicates a potential bullish reversal.
Trend: Suggests a bottom forming in a downtrend.
 Learn more

29. In-neck Candlestick Pattern

Definition: The In-neck Candlestick Pattern is a bearish continuation pattern occurring in a
downtrend. It consists of a long bearish candle followed by a smaller bullish candle that
closes near the low of the previous candle.
Signal: Indicates the continuation of the current downtrend.
Trend: Suggests that the bearish trend will persist.

Learn more

30. On-neck Candlestick Pattern

Definition: The On-neck Candlestick Pattern, similar to the In-neck pattern, is a bearish
continuation pattern. It forms with a long bearish candle followed by a small bullish candle
that closes near the low of the first candle.
Signal: Signals ongoing bearish sentiment.
Trend: Indicates that the downtrend is likely to continue.
 Learn more

31. Stick Sandwich Candlestick Pattern

Definition: The Stick Sandwich Candlestick Pattern is a bullish reversal pattern consisting
of two black (bearish) candles surrounding one white (bullish) candle. The closing prices of
the bearish candles are at about the same level, forming a ‘sandwich’.
Signal: Suggests a bullish reversal.
Trend: Often indicates a bottoming out in a bearish trend.
 Learn more

32. Above The Stomach Candlestick Pattern

Definition: The Above The Stomach Candlestick Pattern is a bullish continuation pattern.
It’s formed by a bearish candle followed by a bullish candle that opens above the midpoint
of the body of the first candle.
Signal: Indicates continued bullish sentiment.
Trend: Suggests the uptrend is likely to persist.

Learn more

33. Bullish Morning Doji Star Candlestick Pattern

Definition: The Bullish Morning Doji Star Candlestick Pattern is a three-candle bullish
reversal pattern. It starts with a long bearish candle, followed by a Doji that gaps below the
previous candle, and concludes with a long bullish candle.
Signal: Indicates a strong reversal from bearish to bullish.
Trend: Often seen at the bottom of a downtrend.
 Learn more

34. Bearish Evening Doji Star Candlestick Pattern

Definition: The Bearish Evening Doji Star Candlestick Pattern is a three-candle bearish
reversal pattern. It begins with a long bullish candle, followed by a Doji that gaps above the
previous candle, and ends with a long bearish candle.
Signal: Signals a potential bearish reversal after an uptrend.
Trend: Usually occurs at the top of an uptrend.
 Learn more

35. Three Black Crows Candlestick Pattern

Definition: The Three Black Crows Candlestick Pattern consists of three long, consecutive
bearish candles with little or no lower shadows, each opening within the previous candle’s
body and closing at a new low.
Signal: Indicates a strong bearish turn.
Trend: Seen as a strong signal of a bearish reversal.
 Learn more

36. Abandoned Baby Candlestick Pattern

Definition: The Abandoned Baby Candlestick Pattern is a three-candle reversal pattern. It
consists of a long candle, followed by a Doji that gaps away from the first candle, and then
a candle of the opposite type that also gaps away from the Doji.
Signal: Signals a potential reversal, either bullish or bearish.
Trend: Can appear at both tops and bottoms of trends.
 Learn more

37. Three Inside Down Candlestick Pattern

Definition: The Three Inside Down Candlestick Pattern is a bearish reversal pattern that
starts with a large bullish candle, followed by a bearish candle that fits within its body, and
then another bearish candle that closes below the second candle’s close.
Signal: Indicates a bearish reversal.
Trend: Typically found at the end of an uptrend.
 Learn more

38. Three Inside Up Candlestick Pattern

Definition: The Three Inside Up Candlestick Pattern is a bullish reversal pattern beginning
with a large bearish candle, followed by a bullish candle that fits within its body, and a third
bullish candle that closes above the second candle’s close.
Signal: Suggests a bullish reversal.
Trend: Usually appears at the bottom of a downtrend.
 Learn more

39. Three-Line Strike Candlestick Pattern

Definition: The Three-Line Strike Candlestick Pattern consists of three candles of the same
type, followed by a fourth candle of the opposite type that ‘strikes’ back and closes beyond
the opening of the first candle.
Signal: Indicates a strong reversal in the direction of the fourth candle.
Trend: Can be bullish or bearish, depending on the direction of the fourth candle.
 Learn more

40. Three Outside Up Candlestick Pattern

Definition: The Three Outside Up Candlestick Pattern is a bullish reversal pattern starting
with a bearish candle, followed by a larger bullish candle that engulfs it, and a third bullish
candle that closes higher.
Signal: Suggests a shift from bearish to bullish sentiment.
Trend: Often appears during a downtrend and signals a reversal.

Learn more

41. Three Outside Down Candlestick Pattern

Definition: The Three Outside Down Candlestick Pattern is a bearish reversal pattern
beginning with a bullish candle, followed by a larger bearish candle that engulfs it, and a
third bearish candle that closes lower.
Signal: Indicates a shift from bullish to bearish sentiment.
Trend: Typically occurs during an uptrend and signals a reversal.
 Learn more

42. Three Stars in the South Candlestick Pattern

Definition: The Three Stars in the South Candlestick Pattern is a bullish reversal pattern
consisting of three small-bodied candles, each with lower tails, appearing during a
downtrend.
Signal: Suggests a gradual loss of bearish momentum and a potential bullish reversal.
Trend: Usually found at the end of a downtrend.
 Learn more

43. Island Reversal Candlestick Pattern

Definition: The Island Reversal Candlestick Pattern is a reversal pattern characterized by a
gap followed by a consolidation (forming an ‘island’), and then another gap in the opposite
direction.
Signal: Indicates a significant reversal in the market.
Trend: Can be either bullish or bearish, depending on the direction of the gaps.