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Candlestick Patterns Guide

The document outlines various candlestick patterns used in trading, including Bullish Engulfing, Bearish Engulfing, Hammer, Shooting Star, Doji, Morning Star, Evening Star, Piercing Line, Dark Cloud Cover, and Spinning Top. Each pattern indicates potential market reversals or indecision, providing traders with insights into future price movements. Understanding these patterns can aid in making informed trading decisions.

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23 views2 pages

Candlestick Patterns Guide

The document outlines various candlestick patterns used in trading, including Bullish Engulfing, Bearish Engulfing, Hammer, Shooting Star, Doji, Morning Star, Evening Star, Piercing Line, Dark Cloud Cover, and Spinning Top. Each pattern indicates potential market reversals or indecision, providing traders with insights into future price movements. Understanding these patterns can aid in making informed trading decisions.

Uploaded by

manego11394
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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Candlestick Patterns Guide

Bullish Engulfing
A larger green candle completely engulfs the body of the previous red candle. Indicates a potential
reversal to the upside.

Bearish Engulfing
A larger red candle completely engulfs the body of the previous green candle. Indicates a potential
reversal to the downside.

Hammer
A small body at the top with a long lower wick. Indicates potential bullish reversal after a downtrend.

Shooting Star
A small body at the bottom with a long upper wick. Indicates potential bearish reversal after an
uptrend.

Doji
A candle with very small or no real body. Indicates indecision in the market.

Morning Star
A three-candle pattern signaling a bullish reversal. Consists of a long red candle, a short-bodied
candle, and a long green candle.

Evening Star
A three-candle pattern signaling a bearish reversal. Consists of a long green candle, a short-bodied
candle, and a long red candle.

Piercing Line
A bullish reversal pattern. A green candle opens below a red candle's close and closes more than
halfway into the red body.

Dark Cloud Cover


A bearish reversal pattern. A red candle opens above a green candle’s close and closes more than
halfway into the green body.

Spinning Top
Small real body with upper and lower wicks. Indicates indecision and possible trend reversal or
continuation.

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