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SHOOTING STAR
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| This candle
pattern is created when an inverted umbrella line appears above
the top of the real body of the previous day’s candle. This
pattern can continue forming into many other advanced patterns. |
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Candlestick signal: Sell
signal, if followed by a lower close, and technical confluence.
Proper action: Best
if market is overbought. Look for another bearish advanced
patterns.
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DARK CLOUD COVER
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| This candlestick
pattern is created when a white candle followed by a black
candle and the black candle’s open is above the previous
day’s high. The low of the black candle should fall about mid
range of the white candle’s real body, and must not have a
lower low than the previous day’s open. |
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Candlestick signal: Bearish
sell signal, possible reversal if market is overbought.
Proper action: Look
for lower Close on following candle to sell.
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ENGULFING BULLISH LINE
"Tsutsumi line"
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| This candlestick
pattern is created when any black line is followed by a long
white body that has a higher high, and a lower low. |
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Candlestick signal: Buy
signal, possible reversal.
Proper action: Look
for higher Close to buy. Best if found following a new or
contract low.
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ENGULFING BEARISH LINE
"Tsutsumi line"
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| This candlestick
pattern is created when any white line is followed by a long
black line that has a higher high, and a lower low. |
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Candlestick signal: Sell
signal, possible reversal.
Proper action: Look
for lower Close to sell. Best if found following a contract or
new high.
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PIERCING LINE
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| This candlestick
pattern is created when any white line is found after a long
black line. The white line must open below the low of the
previous day and the close must be above the previous day’s
midpoint and below the previous day’s high. |
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Candlestick signal: Possible
buy signal.
Proper action: Good
buy indicator if found after a downtrend. Wait for higher close
to confirm a buy.
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THREE RIVER MORNING DOJI
STAR
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| This candlestick
pattern is created when a doji star is formed in between a black
and a white candle. The high of the doji candle must be lower
than the lows of both the black and white candles beside it. |
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Candlestick signal: Buy
signal.
Proper action: Enter
long position provided white candle’s close is above the black
candle’s high. Place sell stop below the low of the doji.
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THREE RIVER EVENING DOJI
STAR
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| This candlestick
pattern is created when a doji star is formed in between a black
and a white candle. The low of the doji candle must be higher
than the highs of both the black and white candles beside it. |
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Candlestick signal: Sell
signal.
Proper action: Enter
short position provided black candle’s close is below the
white candle’s low. Place buy stop above the high of the doji.
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BULLISH HARAMI LINE
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| This candlestick
pattern is created when a small white line is surrounded by a
black candle preceding it. |
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Candlestick signal: Indecision
in market.
Proper action: Wait
for next signal. Possible reversal. Wait for confirmation. Use
the preceding and succeeding candles to establish direction.
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BEARISH HARAMI LINE
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| This candlestick
pattern is created when a small white line is surrounded by a
black candle preceding it. |
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Candlestick signal: Indecision
in market. Possible reversal.
Proper action: Wait
to sell on confirmation of signal.
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UP TREND MEETING LINES
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| This candlestick
pattern is created when a white line is followed by a black
line. As the name implies they must each close at the same
point. |
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Candlestick signal: Possible
reversal.
Proper action: Wait
for next signal. Possible market short-term correction. Use the
previous candle and the next candle for direction.
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DOWN TREND MEETING LINES
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| This candlestick
pattern is created when a black line is followed by a white
line. As the name implies they must each close at the same
point. |
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Candlestick signal: Short-term
support.
Proper action: Wait
for next signal. Possible market short-term correction. Use the
previous candle and the next candle for direction.
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UPSIDE GAP TWO CROWS
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| This candlestick
pattern is created when the latest two candles are black bodies
following a long white line. The first black body must open
above the high of the long white line and create a gap. The
second black line must close lower than the first black line.
The low of the second black line should fill the gap created by
previous two candles. |
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Candlestick signal: Sell
signal, if followed by a lower Close during an overbought
market.
Proper action: Look
for lower prices. Possible top if found following a new or
contract high.
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BULLISH WINDOW
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| This candlestick
pattern is created when the most current candle has low above
the previous candle. |
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Candlestick signal: Current
trend intact. Bullish continuation signal when market is not
overbought.
Proper action: If
market is oversold, this can be a good buy signal. Look for
stability of trend if gap stays Close.
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BEARISH WINDOW
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| This candlestick
pattern is created when the most current candle has high below
the previous candle. |
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Candlestick signal: Current
trend intact. Bearish continuation signal when market is not
oversold.
Proper action: If
market is overbought, this can be a good sell signal. Look for
stability trend if gap stays Close.
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DOUBLE DOJI STARS
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| This candlestick
pattern is created when the two most current candles are
doji’s and have gapped above or below the candle they follow. |
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Candlestick signal: Possible
major market reversal.
Proper action: Wait
for confirmation. This type of doji pattern is interpreted as a
market consolidation, with an increase in the likelihood of a
major trend change in the market’s momentum.
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BEARISH SIDE BY SIDE
LINES
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| This candlestick
pattern is created when a black candle is followed by two
consecutive candles with each high below the black candle they
follow. |
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Candlestick signal: Short-term
trend is bearish.
Proper action: Wait
for next signal. Look for stability of trend if high is not
broken. Bearish signal if high is not broken.
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TWEEZER TOP
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| This candlestick
pattern is created when two or three consecutive candles have
equal highs. |
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Candlestick signal: Short-term
trend resistance, bearish.
Proper action: Wait
for next signal. Look for stability of trend if high is broken.
Bearish signal if high is not broken.
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TWEEZER BOTTOMS
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| This candlestick
pattern is created when two or three consecutive candles have
equal lows. Shows bullish support at low price. |
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Candlestick signal: Short-term
trend support, bullish.
Proper action: Wait
for next signal. Look for stability of trend if low is broken.
Bullish signal if low is not broken.
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BULLISH HARAMI CROSS
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| This candlestick
pattern is created when any doji line falls within the real body
of the previous white candle. |
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Candlestick signal: Indecision
in market. Possible reversal.
Proper action: Wait
for next signal for confirmation. Possible reversal. Best if
found during an oversold market and a contract or new low.
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BEARISH HARAMI CROSS
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| This candlestick
pattern is created when any doji line falls within the real body
of the previous black candle. |
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Candlestick signal: Indecision
in market. Possible reversal.
Proper action: Wait
for next signal for confirmation. Possible reversal. Best if
found during an overbought market and a contract or new high.
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HAMMER
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| This candlestick
pattern is created when an umbrella line appears after a
downtrend. This pattern is potentially bullish and may indicate a
possible market bottom. Look for confirmation before buying. |
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Candlestick signal: Possible
reversal, buy on confirmation.
Proper action: Look
for higher close above the black candle to buy.
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INVERTED HAMMER
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| This candlestick
pattern is created when an inverted umbrella line appears after a
downtrend. Like the hammer, it is potentially bullish and may
indicate a possible market bottom. Look for confirmation before
buying. |
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Candlestick signal: Possible
reversal, buy on confirmation.
Proper action: Look
for higher close above the black candle to buy.
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