Candlesticks & Candlesticks Patterns

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Candlesticks & Candlesticks Patterns
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Candlesticks & Candlesticks Patterns
GREEN RED
CANDLE CANDLE

BULISH BEARISH
MORUBOZU CANDLE

GREEN RED
MARUBOZU MARUBOZU
WHITE MARUBOZU

GREEN
MARUBOZU The White Marubozu is a single candlestick
pattern that is formed after a downtrend
indicating a bullish reversal.
This candlestick has a long bullish body with no
upper or lower shadows which shows that the
bulls are exerting buying pressure and the
markets may turn bullish.
BLACK MARUBOZU

RED
MARUBOZU The Black Marubozu is a single candlestick
pattern which is formed after an uptrend
indicating bearish reversal.
This candlestick chart has a long bearish body
with no upper or lower shadows which shows
that the bears are exerting selling pressure and
the markets may turn bearish.
At the formation of this candle, the buyers
should be caution and close their buying
position.
DOJIS

BUYERS
WINNING

Doji pattern is a candlestick pattern

of indecision which is formed when
the opening and closing prices are
almost equal.

It is formed when both the bulls and

bears are fighting to control prices
but nobody succeeds in gaining full
SELLERS control of the prices.

WINNING
GRAVESTONE AND DRAGONFLY
GRAVESTONE AND DRAGONFLY

GRAVESTONE DRAGONFLY
SPINNING TOP

The spinning top

candlestick pattern is
same as the Doji indicating
indecision in the market.

The only difference

between spinning top and
doji is in their formation,
the real body of the
spinning is larger as
compared to Doji.
SPINNING TOP
HAMMER / SHOOTING STAR

HAMMER

SHOOTING STAR
INVERTED HAMMER / HANGING MAN

INVERTED HAMMER

HANGING MAN
HAMMER
Hammer is a single candlestick pattern that is
formed at the end of a downtrend and signals a
bullish reversal.

HAMMER The real body of this candle is small and is

located at the top with a lower shadow which
should be more than twice the real body. This
Real Body candlestick chart pattern has no or little upper
shadow.

The psychology behind this candle formation is

Long Lower that the prices opened, and sellers pushed down
Shadow the prices.

Suddenly the buyers came into the market and

pushed the prices up and closed the trading
session more than the opening price.
INVERTED HAMMER

INVERTED HAMMER
An Inverted Hammer is formed at the end
of the downtrend and gives a bullish
reversal signal.
In this candlestick, the real body is located
at the end and there is a long upper
shadow. It is the inverse of the Hammer
Candlestick pattern.
This pattern is formed when the opening
and closing prices are near to each other
and the upper shadow should be more than
twice the real body.
IHANGING MAN
Hanging Man is a single candlestick pattern which is formed
at the end of an uptrend and signals bearish reversal.
The real body of this candle is small and is located at the
top with a lower shadow which should be more than the
twice of the real body. This candlestick pattern has no or
little upper shadow.
The psychology behind this candle formation is that the
prices opened and seller pushed down the prices.
Suddenly the buyers came into the market and pushed the
prices up but were unsuccessful in doing so as the prices
closed below the opening price.
This resulted in the formation of bearish pattern and
HANGING MAN signifies that seller are back in the market and uptrend may
end.
Traders can enter a short position if next day a bearish
candle is formed and can place a stop-loss at the high of
Hanging Man.
SHOOTING STAR

Shooting Star is formed at the end of the

uptrend and gives bearish reversal signal.
In this candlestick chart the real body is located
at the end and there is long upper shadow. It is
the inverse of the Hanging Man Candlestick
pattern.
This pattern is formed when the opening and
closing prices are near to each other and the
upper shadow should be more than the twice of
the real body.

SHOOTING STAR
BULLISH HARAMI AND BEARISHHARAMI

BEARISH HARAMI BULLISH HARAMI

BULLISH HARAMI

The Bullish Harami is multiple candlestick

chart pattern which is formed after a
downtrend indicating bullish reversal.
It consists of two candlestick charts, the first
candlestick being a tall bearish candle and
second being a small bullish candle which
should be in the range of the first
candlestick.
The first bearish candle shows the
continuation of the bearish trend and the
second candle shows that the bulls are back
in the market.

Traders can take a long position after the

BULLISH HARAMI completion of this candlestick pattern.
BEARISH HARAMI

The Bearish Harami is multiple candlestick

pattern which is formed after the uptrend
indicating bearish reversal.
It consists of two candlesticks, the first
candlestick being a tall bullish candle and
second being a small bearish candle which
should be in the range of the first
candlestick chart.
The first bullish candle shows the
continuation of the bullish trend and the
second candle shows that the bears are back
in the market.

BEARISH HARAMI
BULLISH AND BEARISH ENGULFING

ENGULFING BULLISH ENGULFING BEARISH

BULLISH ENGULFING
Bullish Engulfing is a multiple candlestick
chart pattern that is formed after a
downtrend indicating a bullish reversal.
It is formed by two candles, the second
candlestick engulfing the first candlestick.
The first candle is a bearish candle that
indicates the continuation of the downtrend.
The second candlestick is a long bullish
candle that completely engulfs the first
The second candle candle and shows that the bulls are back in
engulfing the first the market.
candle
Traders can enter a long position if next day
a bullish candle is formed and can place a
BULLISH ENGULFING stop-loss at the low of the second candle.
BEARISH ENGULFING
Bearish Engulfing is a multiple candlestick
pattern that is formed after an uptrend
indicating a bearish reversal.
The second candle
It is formed by two candles, the second
engulfing the first
candlestick engulfing the first candlestick.
candle
The first candle being a bullish candle
indicates the continuation of the uptrend.
The second candlestick chart is a long
bearish candle that completely engulfs the
first candle and shows that the bears are
back in the market.
Traders can enter a short position if next day
a bearish candle is formed and can place a
stop-loss at the high of the second candle.
BEARISH ENGULFING
PIERCING PATTERN / DARK CLOUD COVER

Closing should be more

than 50% of the
previous candlestick

PIERCING PATTERN DARK CLOUD COVER

PIERCING PATTERN
Piercing pattern is a multiple candlestick
chart pattern formed after a downtrend
indicating a bullish reversal.
Two candles form it, the first candle being a
bearish candle which indicates the
Closing should be more continuation of the downtrend.
than 50% of the
previous candlestick The second candle is a bullish candle which
opens the gap down but closes more than
50% of the real body of the previous candle,
which shows that the bulls are back in the
market and a bullish reversal is going to take
place.

Traders can enter a long position if the next

day a bullish candle is formed and can place
a stop-loss at the low of the second candle.
DARK CLOUD COVER

Dark Cloud Cover is multiple candlestick

pattern which is formed after the uptrend
indicating bearish reversal.
It is formed by two candles, the first candle
being a bullish candle which indicates the
continuation of the uptrend.
The second candle is a bearish candle which
opens gap up but closes more than 50% of
the real body of the previous candle which
Closing should be more shows that the bears are back in the market
than 50% of the and bearish reversal is going to take place.
previous candlestick Traders can enter a short position if the next
day a bearish candle is formed and can place
a stop-loss at the high of the second candle
MORNING STAR / EVENING STAR

MORNING STAR

EVENING STAR
MORNING STAR
The Morning Star is a multiple candlestick chart
pattern which is formed after a downtrend
indicating a bullish reversal.
MORNING STAR
It is made of 3 candlesticks, the first being a
bearish candle, the second a Doji and the third
being a bullish candle.
The first candle shows the continuation of the
downtrend. The second candle being a doji
indicates indecision in the market. The third
bullish candle shows that the bulls are back in the
market and reversal will take place.
The second candle should be completely out of
the real bodies of the first and third candles.

Traders can enter a long position if the next day a

bullish candle is formed and can place a stop-loss
at the low of the second candle.
EVENING STAR
The Evening Star is multiple candlestick pattern
which is formed after the uptrend indicating
bearish reversal.
It is made of 3 candlesticks, first being a bullish
candle, second a doji and third being a bearish
candle.
The first candle shows the continuation of the
uptrend, the second candle being a doji indicates
indecision in the market, and the third bearish
candle shows that the bears are back in the
market and reversal is going to take place.
The second candle should be completely out of
the real bodies of first and third candle.
Traders can enter a long position if next day a
EVENING STAR bearish candle is formed and can place a stop-
loss at the high of the second candle.
THREE WHITE SOLDIERS / BLACK CROWS
THREE WHITE SOLDIERS

THREE BLACK CROWS

THREE WHITE SOLDIERS
THREE WHITE SOLDIERS

The Three White Soldiers is a multiple

candlestick pattern that is formed after a
downtrend indicating a bullish reversal.
These candlestick charts are made of three
long bullish bodies which do not have long
shadows and are open within the real body
of the previous candle in the pattern.
THREE BLACK CROWS

The Three Black Crows is multiple

candlestick pattern which is formed after an
uptrend indicating bearish reversal.
These candlesticks are made of three long
bearish bodies which do not have long
shadows and open within the real body of
the previous candle in the pattern.

THREE BLACK CROWS

THREE INSIDE UP/DOWN

THREE INSIDE UP

THREE INSIDE DOWN

THREE INSIDE UP
The Three Inside Up is multiple candlestick
THREE INSIDE UP pattern which is formed after a downtrend
indicating bullish reversal.
It consists of three candlesticks, the first being a
long bearish candle, the second candlestick being
a small bullish candle which should be in the
range the first candlestick.
The third candlestick should be a long bullish
candlestick confirming the bullish reversal.
The relationship of the first and second
candlestick should be of the bullish harami
candlestick pattern.

Traders can take a long position after the

completion of this candlestick pattern.
THREE INSIDE DOWN
The Three Inside Down is multiple candlestick
pattern which is formed after an uptrend
indicating bearish reversal.
It consists of three candlesticks, the first being a
long bullish candle, the second candlestick being
a small bearish which should be in the range the
first candlestick.
The third candlestick chart should be a long
bearish candlestick confirming the bearish
reversal.
The relationship of the first and second
candlestick should be of the bearish Harami
candlestick pattern.
THREE INSIDE DOWN Traders can take a short position after the
completion of this candlestick pattern.
THREE OUTSIDE UP/DOWN

THREE OUTSIDE UP

THREE OUTSIDE DOWN

THREE OUTSIDE UP

THREE OUTSIDE UP The Three Outside Up is multiple candlestick

pattern which is formed after a downtrend
indicating bullish reversal.
It consists of three candlesticks, the first being a
short bearish candle, the second candlestick
being a large bullish candle which should cover
the first candlestick.
The third candlestick should be a long bullish
candlestick confirming the bullish reversal.
The relationship of the first and second
candlestick chart should be of the Bullish
Engulfing candlestick pattern.
Traders can take a long position after the
completion of this candlestick pattern.
THREE OUTSIDE DOWN
The Three Outside Down is multiple candlestick
pattern which is formed after an uptrend
indicating bearish reversal.
It consists of three candlesticks, the first being a
short bullish candle, the second candlestick being
a large bearish candle which should cover the
first candlestick.
The third candlestick should be a long bearish
candlestick confirming the bearish reversal.
The relationship of the first and second
candlestick should be of the Bearish Engulfing
candlestick pattern.
Traders can take a short position after the
completion of this candlestick pattern.
THREE OUTSIDE DOWN
ON-NECK PATTERN / COUNTERATTACK

BULLISH COUNTERATTACK The on neck pattern occurs

after a downtrend when a
long real bodied bearish
candle is followed by a
smaller real bodied bullish
candle which gaps down
Same on the open but then
Neckline closes near the prior
candle’s close.
The pattern is called a
neckline because the two
closing prices are the same
or almost the same across
the two candles, forming a
horizontal neckline.
BEARISH COUNTERATTACK
BULLISH COUNTERATTACK

The bullish counterattack pattern is a

bullish reversal pattern that predicts the
Same upcoming reversal of the current
Neckline downtrend in the market. This candlestick
pattern is a two-bar pattern that appears
during a downtrend in the market. A pattern
needs to meet the following conditions to
be a bullish counterattack pattern.
BEARISH COUNTERATTACK

The bearish counterattack candlestick

pattern is a bearish reversal pattern that
appears during an uptrend in the market. It
predicts that the current uptrend in the
Same
market will make and the new downtrend
Neckline
will take over the market.
TWEEZER BOTTOM / TOP

TWEEZER BOTTOM
SAME HIGH

TWEEZER TOP
SAME LOW
TWEEZER BOTTOM
The Tweezer Bottom candlestick pattern is a bullish reversal
TWEEZER BOTTOM candlestick pattern that is formed at the end of the
downtrend.
It consists of two candlesticks, the first one being bearish
and the second one being bullish candlestick.
Both the candlesticks make almost or the same low.When
the Tweezer Bottom candlestick pattern is formed the prior
trend is a downtrend.
A bearish tweezer candlestick is formed which looks like the
continuation of the ongoing downtrend. On the next day, the
second day’s bullish candle’s low indicates a support level.
The bottom-most candles with almost the same low indicate
the strength of the support and also signal that the
downtrend may get reversed to form an uptrend. Due to this
SAME LOW the bulls step into action and move the price upwards.
This bullish reversal is confirmed the next day when the
bullish candle is formed.
TWEEZER TOP
The Tweezer Top pattern is a bearish reversal candlestick
pattern that is formed at the end of an uptrend.
It consists of two candlesticks, the first one being bullish and
SAME HIGH the second one being bearish candlestick. Both the tweezer
candlestick make almost or the same high.
When the Tweezer Top candlestick pattern is formed the
prior trend is an uptrend. A bullish candlestick is formed
which looks like the continuation of the ongoing uptrend.
On the next day, the high of the second day’s bearish
candle’s high indicates a resistance level. Bulls seem to raise
the price upward, but now they are not willing to buy at
higher prices.
The top-most candles with almost the same high indicate the
strength of the resistance and also signal that the uptrend
TWEEZER TOP may get reversed to form a downtrend. This bearish reversal
is confirmed on the next day when the bearish candle is
formed.
FALLING THREE METHODS

The “falling three methods” is a bearish,

five candle continuation pattern which
signals an interruption, but not a
reversal, of the ongoing downtrend.
The candlestick pattern is made of two
long candlestick charts in the direction
of the trend i.e downtrend at the
beginning and end, with three shorter
counter-trend candlesticks in the
middle.
The candlestick pattern is important as it
shows traders that the bulls still do not
have enough power to reverse the trend.
RISING THREE METHODS

The “rising three methods” is a bullish,

five candle continuation pattern which
signals an interruption, but not a
reversal, of the ongoing uptrend.
The candlestick pattern is made of two
long candlesticks in the direction of the
trend i.e uptrend in this case. at the
beginning and end, with three shorter
counter-trend candlesticks in the
middle.
The candlestick pattern is important as it
shows traders that the bears still do not
have enough power to reverse the trend.
RISING WINDOW METHODS

The rising window is a candlestick

pattern consisting of two bullish
candlesticks with a gap between them.
The gap is a space between the high and
low of two candlesticks that occurs due
to high trading volatility. It is a trend
GAP continuation candlestick pattern
indicating strong strength of buyers in
the market.
FALLING WINDOW METHODS

The falling window is a candlestick

pattern that consists of two bearish
candlesticks with a gap between them.
The gap is a space between the high and
low of two candlesticks. it occurs due to
high trading volatility. It is a trend
GAP
continuation candlestick pattern and it is
an indication of the strong strength of
sellers in the market.
UPSIDE TASUKI GAP

It is a bullish continuation candlestick

pattern which is formed in an ongoing
uptrend.

This candlestick pattern consists of three

candles, the first candlestick is a long-
bodied bullish candlestick, and the
second candlestick is also a bullish
candlestick chart formed after a gap up.

The third candlestick is a bearish candle

that closes in the gap formed between
these first two bullish candles.
DOWNSIDE TASUKI GAP

It is a bearish continuation candlestick

pattern which is formed in an ongoing
downtrend.
This candlestick pattern consists of three
candles, the first candlestick is a long-
bodied bearish candlestick, and the
second candlestick is also a bearish
candlestick formed after a gap down.
The third candlestick is a bullish candle
that closes in the gap formed between
these first two bearish candles.
MAT-HOLD

A mat hold pattern is a candlestick

formation indicating the continuation of
a prior trend.
There can be either bearish or bullish
mat hold patterns. A bullish pattern
begins with a large bullish candle
followed by a gap higher and three
smaller candles which move lower.

These candles must stay above the low

of the first candle. The fifth candle is a
BULISH large candle that moves to the upside
again. The pattern occurs within an
overall uptrend.
MAT-HOLD

A mat hold pattern is a candlestick

BEARISH formation indicating the continuation of
a prior trend.
There can be either bearish or bullish
mat hold patterns. A bearish pattern
begins with a large bearish candle
followed by a gap Lower and three
smaller candles which move Higher.

These candles must stay below the high

of the first candle. The fifth candle is a
large candle that moves to the downside
again. The pattern occurs within an
overall uptrend.