· Abandoned Baby:
A
rare reversal pattern characterized by a gap followed by a Doji, which is then
followed by another gap in the opposite direction. The shadows on the Doji must
completely gap below or above the shadows of the first and third day.
· Dark Cloud Cover:
A
bearish reversal pattern that continues the uptrend with a long white body. The
next day opens at a new high then closes below the midpoint of the body of the
first day.
· Doji
Doji
form when a security's open and close are virtually equal. The length of the
upper and lower shadows can vary, and the resulting candlestick looks like,
either, a cross, inverted cross, or plus sign. Doji convey a sense of
indecision or tug-of-war between buyers and sellers. Prices move above and
below the opening level during the session, but close at or near the opening
level.
· Downside Tasuki Gap:
A continuation pattern with a long, black
body followed by another black body that has gapped below the first one. The
third day is white and opens within the body of the second day, then closes in
the gap between the first two days, but does not close the gap.
· Dragonfly Doji:
A
Doji where the open and close price are at the high of the day. Like other Doji
days, this one normally appears at market turning points.
· Engulfing Pattern:
A reversal pattern that can be bearish or
bullish, depending upon whether it appears at the end of an uptrend (bearish
engulfing pattern) or a downtrend (bullish engulfing pattern). The first day is
characterized by a small body, followed by a day whose body completely engulfs
the previous day's body.
· Evening Doji Star:
A three day bearish reversal pattern similar
to the Evening Star. The uptrend continues with a large white body. The next
day opens higher, trades in a small range, then closes at its open (Doji). The
next day closes below the midpoint of the body of the first day.
· Evening Star:
A
bearish reversal pattern that continues an uptrend with a long white body day
followed by a gapped up small body day, then a down close with the close below
the midpoint of the first day.
· Falling Three Methods:
A bearish continuation pattern. A long black
body is followed by three small body days, each fully contained within the
range of the high and low of the first day. The fifth day closes at a new low.
· Hammer:
Hammer
candlesticks form when a security moves significantly lower after the open, but
rallies to close well above the intraday low. The resulting candlestick looks
like a square lollipop with a long stick. If this candlestick forms during a
decline, then it is called a Hammer.
· Hanging Man:
Hanging
Man candlesticks form when a security moves significantly lower after the open,
but rallies to close well above the intraday low. The resulting candlestick
looks like a square lollipop with a long stick. If this candlestick forms
during an advance, then it is called a Hanging Man.
· Harami:
A
two day pattern that has a small body day completely contained within the range
of the previous body, and is the opposite color.
· Harami Cross:
A
two day pattern similar to the Harami. The difference is that the last day is a
Doji.
· Inverted Hammer:
A
one day bullish reversal pattern. In a downtrend, the open is lower, then it
trades higher, but closes near its open, therefore looking like an inverted
lollipop.
·
Long Day:
A
long day represents a large price move from open to close, where the length of
the candle body is long.
· Long-Legged Doji:
This
candlestick has long upper and lower shadows with the Doji in the middle of the
day's trading range, clearly reflecting the indecision of traders.
· Long Shadows:
Candlesticks with a long upper shadow and
short lower shadow indicate that buyers dominated during the first part of the
session, bidding prices higher. Conversely, candlesticks with long lower
shadows and short upper shadows indicate that sellers dominated during the
first part of the session, driving prices lower.
· Marubozu:
A
candlestick with no shadow extending from the body at either the open, the
close or at both. The name means close-cropped or close-cut in Japanese, though
other interpretations refer to it as Bald or Shaven Head.
· Morning Doji Star:
A three day bullish reversal pattern that is
very similar to the Morning Star. The first day is in a downtrend with a long
black body. The next day opens lower with a Doji that has a small trading
range. The last day closes above the midpoint of the first day.
· Morning Star:
A
three day bullish reversal pattern consisting of three candlesticks - a
long-bodied black candle extending the current downtrend, a short middle candle
that gapped down on the open, and a long-bodied white candle that gapped up on
the open and closed above the midpoint of the body of the first day.
· Piercing Line:
A
bullish two day reversal pattern. The first day, in a downtrend, is a long
black day. The next day opens at a new low, then closes above the midpoint of
the body of the first day.
· Rising Three Methods:
A bullish continuation pattern in which a
long white body is followed by three small body days, each fully contained
within the range of the high and low of the first day. The fifth day closes at
a new high.
· Shooting Star:
A
single day pattern that can appear in an uptrend. It opens higher, trades much
higher, then closes near its open. It looks just like the Inverted Hammer
except that it is bearish.
· Short Day:
A
short day represents a small price move from open to close, where the length of
the candle body is short.
· Spinning Top:
Candlestick
lines that have small bodies with upper and lower shadows that exceed the
length of the body. Spinning tops signal indecision.
· Stars:
A
candlestick that gaps away from the previous candlestick is said to be in star
position. Depending on the previous candlestick, the star position candlestick
gaps up or down and appears isolated from previous price action.
· Stick Sandwich :
A
bullish reversal pattern with two black bodies surrounding a white body. The
closing prices of the two black bodies must be equal. A support price is
apparent and the opportunity for prices to reverse is quite good.
· Three Black Crows:
A bearish reversal pattern consisting of
three consecutive long black bodies where each day closes at or near its low
and opens within the body of the previous day.
· Three White Soldiers:
A bullish reversal pattern consisting of
three consecutive long white bodies. Each should open within the previous body
and the close should be near the high of the day.
· Upside Gap Two Crows:
A three day bearish pattern that only happens
in an uptrend. The first day is a long white body followed by a gapped open
with the small black body remaining gapped above the first day. The third day
is also a black day whose body is larger than the second day and engulfs it.
The close of the last day is still above the first long white day.