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Candlestick Patterns Guide

The document outlines common candlestick patterns used in trading, including Doji, Hammer, and Engulfing patterns, each indicating market trends and potential reversals. It describes the characteristics of each pattern, such as body size and wick length, and their implications for market sentiment. Key patterns include bullish and bearish reversals, as well as indecision signals.

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abhishek20060611
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10 views2 pages

Candlestick Patterns Guide

The document outlines common candlestick patterns used in trading, including Doji, Hammer, and Engulfing patterns, each indicating market trends and potential reversals. It describes the characteristics of each pattern, such as body size and wick length, and their implications for market sentiment. Key patterns include bullish and bearish reversals, as well as indecision signals.

Uploaded by

abhishek20060611
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Common Candlestick Patterns

Doji

Open and Close are almost equal. Signals indecision in the market.

Hammer

Small body, long lower wick. Bullish reversal after a downtrend.

Inverted Hammer

Small body, long upper wick. Bullish reversal after a downtrend.

Shooting Star

Small body, long upper wick. Bearish reversal after an uptrend.

Hanging Man

Small body, long lower wick. Bearish reversal after an uptrend.

Bullish Engulfing

Large bullish candle engulfs previous bearish candle. Strong bullish reversal.

Bearish Engulfing

Large bearish candle engulfs previous bullish candle. Strong bearish reversal.

Morning Star

Three-candle bullish reversal pattern. Signals end of a downtrend.

Evening Star

Three-candle bearish reversal pattern. Signals end of an uptrend.

Piercing Line

Bullish reversal with a gap down followed by a bullish candle closing more than halfway into the

previous body.

Dark Cloud Cover

Bearish reversal with a gap up followed by a bearish candle closing more than halfway into the
previous body.

Spinning Top

Small body with long upper and lower wicks. Indicates indecision.

Marubozu

No wicks. Strong buying or selling pressure depending on color.

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