Candlestick Patterns - Study Guide
Doji
A Doji candlestick has nearly the same opening and closing price, representing indecision in the
market.
Hammer
A Hammer candlestick has a small body and a long lower wick, indicating a potential reversal to the
upside.
Inverted Hammer
An Inverted Hammer has a small body and a long upper wick, suggesting a possible reversal after a
downtrend.
Shooting Star
A Shooting Star has a small body near the low and a long upper wick, signaling a potential bearish
reversal.
Bullish Engulfing
A Bullish Engulfing pattern occurs when a larger green candlestick completely engulfs a smaller red
one, indicating bullish momentum.
Bearish Engulfing
A Bearish Engulfing pattern happens when a larger red candlestick completely engulfs a smaller
green one, suggesting bearish sentiment.
Morning Star
The Morning Star is a three-candlestick pattern signaling a bullish reversal, with a large red candle,
a small indecisive one, and a large green candle.
Evening Star
The Evening Star is a bearish reversal pattern consisting of a large green candle, a small indecisive
one, and a large red candle.
Three Black Crows
Three Black Crows is a bearish pattern represented by three consecutive long red candles with
progressively lower closes.
