Your support is fundamental for the future, to continue sharing the best free strategies and indicators.


Candlestick Basic Patterns

Submit by Forexstrategiesresources

 

 

Japanese rice traders developed candlesticks centuries ago

to visually display price activity over a defined trading

period. Each candlestick represents the trading activity for

one period. The lines of a candlestick represent the opening,

high, low and closing values for the period.

 

The main body (the wide part) of the candlestick represents

the range between the opening and closing prices. If the

closing price is higher than the opening price, the main

body is white. If the closing price is lower than the opening

price, the main body is black.

The lines protruding from either end are called wicks or

shadows.

 

 

 

Candlestick Bearish Pattern

Bearish
Bearish

Bearish 3

Pattern     A long black body followed by

several small bodys and ending in

another long black body. The small

bodys are usually contained within

the first black body's range.

Interpretation    A bearish continuation pattern.

 

 

 

Bearish Harami

Bearish Harami
Bearish Harami

 

Bearish Harami

Pattern A very large white body followed by a

small black body that is contained within

the previous bar.

Interpretation A bearish pattern when preceded by an

uptrend.

 

 

 

 

Bearish Harami Cross

Bearish Harami Cross
Bearish Harami Cross

Bearish Harami Cross

Pattern A Doji contained within a large white

body.

Interpretation A top reversal signal.

 

 

Big Black Candle

Big Black candle
Big Black candle

Big Black Candle

Pattern An unusually long black body with a wide

range. Prices open near the high and

close near the low.

Interpretation A bearish pattern.

 


Black Body Pattern

Black Body
Black Body

Black Body

Pattern This candlestick is formed when the

closing price is lower than the opening

price.

Interpretation A bearish signal. More important when

part of a pattern.

 

 

Dark Cloud Cover

Dark Cloud Cover
Dark Cloud Cover

Dark Cloud Cover

Pattern A long white body followed by a black

body. The following black candlestick

opens higher than the white candlestick's

high and closes at least 50% into the

white candlestick's body.

Interpretation A bearish reversal signal during an

uptrend.

 

 

 

Candlestick Bullish Pattern

Bullish 3
Bullish 3

Bullish 3

Pattern A long white body followed by three

small bodies, ending in another long

white body. The three small bodies are

contained within the first white body.

Interpretation A bullish continuation pattern

 

Big White Candle

Big White Candle
Big White Candle

Big White Candle

Pattern A very long white body with a wide range

between high and low. Prices open near

the low and close near the high.

Interpretation A bullish pattern.

 

Bullish Harami Pattern

Bullish Harami
Bullish Harami

Bullish Harami

Pattern A very large black body is followed by a

small white body and is contained within

the black body.

Interpretation A bullish pattern when preceded by a

downtrend.

 

 

Bullish Harami Cross

Bullish Harami Cross
Bullish Harami Cross

Bullish Harami Cross

Pattern A Doji contained within a large black

body.

Interpretation A bottom reversal pattern.

 

Doji pattern

Doji
Doji

Doji

Pattern The open and close are the same.

Interpretation Dojis are usually components of many

candlestick patterns. This candlestick

assumes more importance the longer

the verticle line.

 

Doji Star

DoJi Star
DoJi Star

Doji Star

Pattern A Doji which gaps above or below a

white or black candlestick.

Interpretation A reversal signal confirmed by the next

candlestick (eg. a long white candlestick

would confirm a reversal up).

 

 

Engulfing Bearish Line
Engulfing Bearish Line

Engulfing Bearish Line

Pattern A small white body followed by and

contained within a large black body.

Interpretation A top reversal signal.

 

Engulfing Bullish Line

Engulfing Bullish Line
Engulfing Bullish Line

Engulfing Bullish Line

Pattern A small black body followed by and

contained within a large white body.

Interpretation A bottom reversal signal.

 

 

Evening Doji Star

Evening Doji Star
Evening Doji Star

Evening Doji Star

Pattern A large white body followed by a Doji

that gaps above the white body. The

third candlestick is a black body that

closes 50% or more into the white body.

Interpretation A top reversal signal, more bearish than

the regular evening star pattern.

 

Evening Star
Evening Star

Evening Star

Pattern A large white body followed by a small

body that gaps above the white body.

The third candlestick is a black body

that closes 50% or more into the white

body.

Interpretation A top reversal signal.

 

Falling Widow
Falling Widow

Falling Window

Pattern A gap or "window" between the low of

the first candlestick and the high of the

second candlestick.

Interpretation A rally to the gap is highly probable. The

gap should provide resistance.

 

Gravestone Doji
Gravestone Doji

Gravestone Doji

Pattern The open and close are at the low of the

bar.

Interpretation A top reversal signal. The longer the

upper wick, the more bearish the signal.

 

Hammer
Hammer

Hammer

Pattern A small body near the high with a long

lower wick with little or no upper wick.

Interpretation A bullish pattern during a downtrend.

 

 

Hanging Man
Hanging Man

Hanging Man

Pattern A small body near the high with a long

lower wick with little or no upper wick. The

lower wick should be several times the

height of the body.

Interpretation A bearish pattern during an uptrend

 

 

Inverted Black Hammer
Inverted Black Hammer

Inverted Black Hammer

Pattern An upside-down hammer with a black

body.

Interpretation A bottom reversal signal with confirmation

the next trading bar.

 

Inverted Hammer
Inverted Hammer

Inverted Hammer

Pattern An upside-down hammer with a white or

black body.

Interpretation A bottom reversal signal with

confirmation the next trading bar.

 

Long Legged Doji
Long Legged Doji

Long Legged Doji

Pattern A Doji pattern with long upper and lower

wicks.

Interpretation A top reversal signal.

 

 

Long Lower Shadow
Long Lower Shadow

Long Lower Shadow

Pattern A candlestick with a long lower wick with a

length equal to or longer than the range of

the candlestick.

Interpretation A bullish signal.

 

Long Upper Shadow
Long Upper Shadow

Long Upper Shadow

Pattern A candlestick with an upper wick that has

a length equal to or greater than the range

of the candlestick.

Interpretation A bearish signal.

 

Morning Doji Star
Morning Doji Star

Morning Doji Star

Pattern A large black body followed by a Doji

that gaps below the black body. The next

candlestick is a white body that closes

50% or more into the black body.

Interpretation A bottom reversal signal

 

Morning Star
Morning Star

Morning Star

Pattern A large black body followed by a small

body that gaps below the black body.

The following candlestick is a white

body that closes 50% or more into the

black body.

Interpretation A bottom reversal signal.

 

On Neck-Line
On Neck-Line

On Neck-Line

Pattern In a downtrend, a black candlestick is

followed by a small white candlestick with

its close near the low of the black

candlestick.

Interpretation A bearish pattern where the market

should move lower when the white

candlestick's low is penetrated by the

next bar.


 

Piercing Line
Piercing Line

Piercing Line

Pattern A black candlestick followed by a white

candlestick that opens lower than the

black candlestick's low, but closes 50%

or more into the black body.

Interpretation A bottom reversal signal.

 

Rising Window
Rising Window

Rising Window

Pattern A gap or "window" between the high of

the first candlestick and the low of the

second candlestick.

Interpretation A selloff to the gap is highly likely. The

gap should provide support.

 

Separating Lines Up Trend
Separating Lines Up Trend

Separating Lines

Pattern In an uptrend, a black candlestick is

followed by a white candlestick with the

same opening price.

In a downtrend, a white candlestick is

followed by a black candlestick with the

same opening price.

Interpretation A continuation pattern. The prior trend

should resume.

 

Separating Line in Down Trend
Separating Line in Down Trend
Shaven Bottom
Shaven Bottom

Shaven Bottom

Pattern A candlestick with no lower wick.

Interpretation A bottom reversal signal with confirmation

the next trading bar.

 

Shaven Head
Shaven Head

Shaven Head

Pattern A candlestick with no upper wick.

Interpretation A bullish pattern during a downtrend and

a bearish pattern during an uptrend.

 

Shooting Star
Shooting Star

Shooting Star

Pattern A candlestick with a small body, long

upper wick, and little or no lower wick.

Interpretation A bearish pattern during an uptrend.

 

Spinning Top
Spinning Top

Spinning Top

Pattern A candlestick with a small body. The size of

the wicks is not critical.

Interpretation A neutral pattern usually associated with

other formations.

 

Three Black Crows
Three Black Crows

Three Black Crows

Pattern Three long black candlesticks with

consecutively lower closes that close

near their lows.

Interpretation A top reversal signal.

 

 

Three White Soldiers
Three White Soldiers

Three White Soldiers

Pattern Three white candlesticks with

consecutively higher closes that close

near their highs.

Interpretation A bottom reversal signal.

 

Tweezer Bottom
Tweezer Bottom

Tweezer Bottoms

Pattern Two or more candlesticks with matching

bottoms. The size or color of the

candlestick does not matter.

Interpretation Minor reversal signal.

 

 

Tweezer Tops
Tweezer Tops

Tweezer Tops

Pattern Two or more candlesticks with similar

tops.

Interpretation A reversal signal.

 

White Body
White Body

White Body

Pattern A candlestick formed when the closing

price is higher than the opening price.

Interpretation A bullish signal.

 

Share your opinion, can help everyone to understand the forex strategy.

Write a comment

Comments: 0