CANDLESTICK PATTERNS

What is a Candlestick

GREEN/BULL CANDLE RED/BEAR CANDLE

HIGH HIGH
$103 $103

CLOSE OPEN
$100 $100

R
A
N
G
E
$92 $92
OPEN CLOSE

$89 $89
LOW LOW
GREEN IF THE CLOSE IS ABOVE THE OPEN RED IF THE CLOSE IS BELOW THE OPEN
 FOUNDATIONAL CANDLESTICKS

E F G H I
D
A B C

A: Doji
B: Spinning Tops
C: Bull & Bear Short Candles
D: Bull & Bear Candles
E: Bull & Bear Long Day Candles
F: Bull & Bear Marubozu
G: Bull & Bear Belt Hold
H: Hammer
I: Inverted Hammer
KEY VISUALS TO ALWAYS TAKE NOTE OF:

• Length / Size of Candle Body

• Length of Shadows
• Color of candle body
• Order is which candles appear
• Where are those candles positioned on the price chart
o Beginning or end of price waves
• Candlestick Patterns appear individually & collectively affecting outcomes
• Combine all of the above to get a complete picture
PATTERN ICON KEYS

Bullish Continuation Pattern

Bearish Continuation Pattern

Horizontal Pattern

Bullish Reversal Pattern

Bearish Reversal Pattern

Continuation or Reversal
CANDLESTICK PATTERN FREQUENCY & PROBABILITY

1 High Frequency, Low Probability 50% - 55%

2 High Frequency, Medium Probability 60% - 65%

3 Moderate Frequency, High Probability 65% - 70%

4 Low Frequency, High Probability 65% - 70%

5> Extremely Rare, Highest Probability 70 – 75%

THE DOJI

OPEN & CLOSE

ARE THE SAME
THE DOJI

DRAGONFLY GRAVESTONE LONG LEGGED

 STATS Bull Market Bear Market
HAMMER Continuation 40% 41%
Reversal 60% 59%

2 x BODY
SUPPORT
 STATS Bull Market Bear Market
TAKURI LINE Continuation 34% 37%
Reversal 66% 63%

3 x OR MORE
BODY

SUPPORT
 STATS Bull Market Bear Market
HANGMAN Continuation 41% 41%
Reversal 59% 59%

RESISTANCE 1
BULLISH BELT HOLD
STATS Bull Market Bear Market
Continuation 29% 29%
Reversal 71% 71%
1

SUPPORT
BEARISH BELT HOLD
STATS Bull Market Bear Market
Continuation 32% 31%
Reversal 68% 69%
1
RESISTANCE
 STATS Bull Market Bear Market
INVERTED HAMMER Continuation 65% 67%
Reversal 35% 33%

SUPPORT
 STATS Bull Market Bear Market
INVERTED HAMMER Continuation 65% 67%
Reversal 35% 33%

SUPPORT
SHOOTING STAR RESISTANCE
STATS Bull Market Bear Market 3 x BODY
Continuation 61% 58%

2
Reversal 39% 42%
SHOOTING STAR
STATS Bull Market Bear Market
Continuation 61% 58%

2
Reversal 39% 42%
RESISTANCE
BULLISH ENGULFING CANDLE **Candle A & B In Reverse = Harami**
**If Harami & A Is a Doji = Harami Cross**
STATS Bull Market Bear Market
Continuation 37% 38%

2
Reversal 63% 62%

A B

SUPPORT
BEARISH ENGULFING CANDLE **Candle A & B In Reverse = Harami**
**If Harami & A Is a Doji = Harami Cross**
STATS Bull Market Bear Market
Continuation 21% 18%
RESISTANCE
2
Reversal 79% 82%

A B
LAST ENGULFING BOTTOM STATS
Continuation
Bull Market
65%
Bear Market
67%
Reversal 35% 33%

2
LAST ENGULFING TOP
STATS Bull Market Bear Market
Continuation 68% 67%
Reversal 32% 33%
2
ABOVE THE STOMACH
STATS Bull Market Bear Market
Continuation 34% 33%

2
Reversal 66% 67%

OPENING &
CLOSING
> 50%
SUPPORT
BELOW THE STOMACH
STATS Bull Market Bear Market
Continuation 40% 35%

2
Reversal 60% 65%

RESISTANCE
OPENING & CLOSING
> 50%
DARK CLOUD COVER **IF < 50% = THRUSTING PATTERN / IN THE NECK**

STATS Bull Market Bear Market

Continuation 40% 37%
RESISTANCE
2
Reversal 60% 63%

> 50% PENETRATION

PIERCING PATTERN **IF < 50% = THRUSTING PATTERN / ON THE NECK**

STATS Bull Market Bear Market

Continuation 36% 40%

2
Reversal 64% 60%

> 50% PENETRATION

SUPPORT
BULLISH SEPARATING LINE **IF A CLOSE = B CLOSE – MEETING LINE

STATS Bull Market Bear Market

Continuation 72% 69%

2
Reversal 28% 31%

CLOSE

B
A OPEN = B OPEN
A
CLOSE
BEARISH SEPARATING LINE **IF A CLOSE = B CLOSE – MEETING LINE

STATS Bull Market Bear Market

Continuation 63% 76%

2
Reversal 37% 24%

CLOSE
A
A OPEN = B OPEN
B
CLOSE
BEARISH DOJI STAR
STATS Bull Market Bear Market
Continuation 69% 67%

2
Reversal 31% 33%
 STATS Bull Market Bear Market
BULLISH DOJI STAR Continuation 64% 71%
Reversal 36% 29%

2
RISING WINDOW / GAP
STATS Bull Market Bear Market
Continuation 75% 72%
Reversal 25% 28%

2
SUPPORT
BULLISH WINDOW / GAP
STATS Bull Market Bear Market
Continuation 75% 72%
Reversal 25% 28%

2
SUPPORT
BULLISH WINDOW / GAP
STATS Bull Market Bear Market
Continuation 75% 72%
Reversal 25% 28%

2
SUPPORT
 BEARISH WINDOW / GAP
STATS Bull Market Bear Market
Continuation 67% 73%
Reversal 33% 27%

RESISTANCE
 BEARISH WINDOW / GAP
STATS Bull Market Bear Market
Continuation 67% 73%
Reversal 33% 27%

RESISTANCE
 BEARISH WINDOW / GAP STATS
Continuation
Bull Market
67%
Bear Market
73%
Reversal 33% 27%

RESISTANCE
 2 BEAR GAPPING CANDLES STATS
Continuation
Bull Market
68%
Bear Market
69%
Reversal 32% 31%

RESISTANCE
BREAKAWAY, EXHAUSTION & CONTINUATION
WINDOWS / GAPS
Close Within A Week Bull Market Bear Market EXHAUSTATION
Breakaway Gap 2% 9%
Continuation Gap 4% 20%
Exhaustion Gap 61% 78%

CONTINUATION

ISLAND LONG

BREAKWAY
BREAKAWAY, EXHAUSTION & CONTINUATION
WINDOWS / GAPS
Close Within A Week Bull Market Bear Market
Breakaway Gap 1% 1%
Continuation Gap 9% 13%
Exhaustion Gap 64% 63%

BREAKWAY

CONTINUATION

EXHAUSTATION
MORNING STAR REVERSAL **BODIES GAP NOT SHADOWS**

> 50%
PENETRATION
GAP
SUPPORT
EVENING STAR REVERSAL **BODIES GAP NOT SHADOWS**

RESISTANCE
3
GAP

> 50%
PENETRATION
MORNING DOJI STAR REVERSAL **BODIES GAP NOT SHADOWS**

STATS Bull Market Bear Market

Continuation 24% 29%

3
Reversal 76% 71%

> 50%
PENETRATION
GAP
SUPPORT
EVENING DOJI STAR REVERSAL **BODIES GAP NOT SHADOWS**
STATS Bull Market Bear Market
Continuation 29% 29%
RESISTANCE
3
Reversal 71% 71%

GAP

> 50%
PENETRATION
ABANDONED BABY BOTTOM **BODIES & SHADOWS GAP – EXTREMELY RARE**
STATS Bull Market Bear Market
Continuation 30% 45%

3
Reversal 70% 55%

GAP

SUPPORT
ABANDONDED BABY TOP **BODIES & SHADOWS GAP – EXTREMELY RARE**
STATS Bull Market Bear Market
Continuation 31% 52%
RESISTANCE
3
Reversal 69% 48%

GAP
3 BLACK CROWS
STATS Bull Market Bear Market
Continuation 22% 21%

3
Reversal 78% 79%
3 WHITE SOLDIERS
STATS Bull Market Bear Market
Continuation 18% 16%

3
Reversal 82% 84%
3 INSIDE UP
STATS Bull Market Bear Market
Continuation 35% 37%

3
Reversal 65% 63%

SUPPORT
3 INSIDE DOWN
STATS Bull Market Bear Market
Continuation 40% 37%
RESISTANCE
3
Reversal 60% 63%
3 OUTSIDE UP
STATS Bull Market Bear Market
Continuation 31% 30%

3
Reversal 69% 70%

SUPPORT
3 OUTSIDE DOWN
STATS Bull Market Bear Market
Continuation 21% 18%
RESISTANCE
3
Reversal 79% 82%
3 LINE STRIKE BEARISH **EXTREMELY RARE**
STATS Bull Market Bear Market
Continuation 16% 23%
Reversal 84% 77%

1 S
T
R
2 I
K
3 E
3 LINE STRIKE BULLISH **EXTREMELY RARE**
STATS Bull Market Bear Market
Continuation 35% 17%
Reversal 65% 83%

4
3 S
T
2 R
I
K
1
E
RISING 3 CANDLE METHOD **EXTREMELY RARE**

STATS Bull Market Bear Market

Continuation 74% 79%

5>
Reversal 26% 21%

SUPPORT
 STATS Bull Market Bear Market
FALLING 3 CANDLE METHOD Continuation 71% 67%
Reversal 29% 33%

**EXTREMELY RARE**

5>

RESISTANCE