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"Candlestick Pattern Masters Course.
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Dojis |
A doji reveals to us that the open and close are the same or very close to the same. The variations of the dojis are dependent on the high and low. For example the gravestone doji tells us that price opened shot up, couldn't hold the high and fell back down to the open and closed.
A Doji is a 1 candlestick single chart pattern.
Bullish Engulfing |
A Bullish engulfing pattern is a 2-3 candle bullish reversal pattern. The pattern is identified by the last candlestick where the open and close completely engulf the previous candlestick. Notice the last two candlesticks, the black or full body candle closed lower than the open, then the white or hallow candlestick opened lower than the previous close but then shot up closing higher than the previous open. A clear signal of the bulls taking over. Wait for a confirmation candlestick.
A bullish engulfing formation is a 2 candlestick chart pattern.
Bearish Engulfing |
Also a 2 candlestick chart pattern. Bearish, of off an up trend where the final candlestick opens higher than the previous close and closes lower than the previous open.
A reversal does not always mean that the current uptrend/downtrend will reverse direction, it often times represents simply the end of the trend. The market may then begin to move sideways. Candlestick reversal patterns must be viewed within the context of prior activity to be effective. Identical candlesticks can have completely different meaning, depending upon the previous candlestick activity.
Hammer |
A hammer forms when price begins to fall and then can't sustain the low. It moves down, but is unable to stay there. This provides a hint as to current strength and weakness. This is a single candlestick chart pattern.
Hanging Man |
A hanging man represents a time where price opens, falls rather dramatically is unable to sustain the low and moves back up to close near the open. This is a good sign of a continuation. This is a single candlestick signal.
Piercing Pattern |
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.
Dark Cloud |
A bearish reversal pattern that continues the up trend 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.
Harami Bullish |
A two day bullish chart pattern that has a small body completely contained within the range of the previous body, and is the opposite color.
Harami Bearish |
Again today's body is completely contained within the previous day AND today's candlestick is the opposite color.
Morning Star Doji |
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.
Evening Star Doji |
bearish reversal pattern that continues an up trend 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.
Bullish Kicker |
A bullish kicker is a two candle pattern where the previous day is a long body where the close is lower than the open. The next day must open above or equal to the previous open, and then close higher than today's open. Today's candlestick should be at least as long as the previous days candlestick.
Kicker Bearish |
Same thing..(opposite) the previous long candlestick should close higher than the open, then today's candlestick should open lower than the previous days open and close lower than today's open.
Shooting Star |
A single day pattern that can appear in an up trend It opens higher, trades much higher, then closes near its open. It looks just like the Inverted Hammer except that it is bearish.
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.
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