COMMON CANDLESTICK REVERSAL PATTERNS - 1

BEARISH CANDLESTICK REVERSAL PATTERNS

DOJI A doji is a single-line pattern that forms during a trading session

where the opening and closing prices are the same, or very close
to the same. Because there is no real body, the doji resembles a
cross.
A doji is an indication of uncertainty—and uncertainty is not likely
to sustain a move. A doji that forms after a price advance is a
bearish indication. It may cause the move to stall, or reverse.

SPINNING TOP Unlike the doji, which has no body, the spinning top is a single-line
pattern that has a small real body. The length of the upper and
lower shadows is not significant. In some cases there will be little
or no shadows. The key element of this pattern is that it has a
small real body. The small real body can be black or white.
When one or more spinning tops appear after a price advance, it
indicates that the price move may be losing its force.

HIGH-WAVE This single-line pattern is a variation of the spinning top. The

CANDLE pattern has a small real body and unusually long upper and lower
shadows. This pattern is similar to the long-legged doji except
that it has a small real body. Think of the high-wave candle as a
long-legged spinning top. Its “long legs” indicate that there was
quite a power struggle during the session between the bears and
bulls, with neither emerging the clear victor.
The presence of a high-wave candle at the end of a price advance
is an indication that the move that preceded it is losing its potency.

HANGING MAN A hanging man is a single-line pattern with a small real body that
forms at, or very near, the top of the session’s range. The color of
the body is not relevant—it can be either black or white. The long
lower shadow is typically two or more times the length of the real
body. There should be no upper shadow, or a very short one.
Although the hanging man may appear after a short-term price
advance, it is even more significant if it appears after a longer rally
or at an all-time high for the stock.

Tina Logan – Trader’s Roadmap www.tinalogan.com (Rev. April 2016)

Copyright © 2007 All Rights Reserved. May not be duplicated or distributed without permission
 COMMON CANDLESTICK REVERSAL PATTERNS - 2

BEARISH CANDLESTICK REVERSAL PATTERNS (Continued)

SHOOTING This single-line pattern forms after a price advance. It has a small
STAR real body that forms at, or very near, the bottom of the session’s
range. The color of the body is not relevant—it can be either black
or white. The long upper shadow is typically two or more times
the length of the real body. There should be no lower shadow, or
a very short one.
An ideal shooting star will gap up away from the prior candle’s
body. However, an opening gap is not necessary to qualify as a
shooting star.

BEARISH This two-candle pattern forms after a price advance. The first
HARAMI candle is a long white body followed in the next session by a small
real body (a spinning top). The second candle can be either black
or white; however, in most instances it is black. The appearance
of a harami is an indication that the market may be losing
momentum.
If the second candle in the formation is a doji instead of a spinning
top, it is referred to as a bearish harami cross. A harami cross is a
stronger signal, especially if it appears after a very long white
candle.
BEARISH This two-candle pattern forms after a price advance. The first is a
COUNTER- long white candle. The second candle gaps up open, ideally
ATTACK LINE above the prior session’s high, with the bulls still in control. But
shortly thereafter, price turns down as the bears engage in a
counter attack.
By the end of the session, all the gains from the opening gap have
been erased and the candle closes at, or very near, the prior
session’s close. In other words, in spite of the sharp move at the
open, the second session closes virtually unchanged.

DARK CLOUD This two-candle pattern forms after a price advance. The first
COVER
session is a full white candle. The second session, a black
candle, gaps up open (ideally above the prior candle’s high) with
the bulls still in control. Price then turns down. By the close of the
session the black candle penetrates deeply into the prior white
candle’s body showing that the bears took control.
An ideal pattern would “cover” at least half of the white candle’s
body. The deeper it protrudes into the white candle’s body, the
more likely a reversal will occur.

Tina Logan – Trader’s Roadmap www.tinalogan.com (Rev. April 2016)

Copyright © 2007 All Rights Reserved. May not be duplicated or distributed without permission
 COMMON CANDLESTICK REVERSAL PATTERNS - 3

BEARISH CANDLESTICK REVERSAL PATTERNS (Concluded)

BEARISH This two-candle pattern forms after a price advance. The first
ENGULFING session is a small white real body. The second session is a black
body that completely engulfs the prior session’s smaller white
body. It is a clear picture of selling pressure overwhelming the
bulls.
The reversal signal is stronger if any of these factors is present:
the engulfing bar is a long candle; the pattern appears after a very
fast rally; there is heavy volume on the engulfing bar.

BEARISH The bearish kicker forms after a price advance. The kicker candle
KICKER opens below the previous white candle’s open and closes in the
opposite direction. The clear kicker signal will have a long white
candle followed by a long black candle.

Bearish kickers often occur around 50- and 200-period moving

averages. They may also appear because of significant news.

EVENING STAR This three-candle pattern forms at the end of a price advance.
The first session is a long white candle. The second session gaps
up open and forms a small black or white body (a spinning top).
This is the “star” portion of the pattern. The third session is a
black candle that intrudes deeply into the body of the first
session’s white candle. If the second session is a doji instead of a
spinning top, it is called an evening doji star and it strengthens the
signal.
An ideal pattern would have a gap between the star (the second
candle) and the bodies of the other two candles. The shadows
may still overlap.

Tina Logan – Trader’s Roadmap www.tinalogan.com (Rev. April 2016)

Copyright © 2007 All Rights Reserved. May not be duplicated or distributed without permission
 COMMON CANDLESTICK REVERSAL PATTERNS - 4

BULLISH CANDLESTICK REVERSAL PATTERNS

DOJI A doji is a single-line pattern that forms during a trading session

where the opening and closing prices are the same, or very close
to the same. Because there is no real body, the doji resembles a
cross.
A doji is an indication of uncertainty—and uncertainty is not likely
to sustain a move. A doji that forms after a price decline may
cause the move to stall, or reverse; however, it is not as reliable
as a doji that forms in an uptrend.

SPINNING TOP Unlike the doji, which has no body, the spinning top is a single-line
pattern that has a small real body. The length of the upper and
lower shadows is not significant. In some cases there will be little
or no shadows. The key element of this pattern is that it has a
small real body. The small real body can be black or white.
When one or more spinning tops appear after a price decline, it
indicates that the price move may be losing its force.

HIGH-WAVE This single-line pattern is a variation of the spinning top. The

CANDLE pattern has a small real body and unusually long upper and lower
shadows. This pattern is similar to the long-legged doji except
that it has a small real body. Think of the high-wave candle as a
long-legged spinning top. Its “long legs” indicates that there was
quite a power struggle during the session between the bears and
bulls, with neither coming out the clear victor.

The presence of a high-wave candle at the end of a price decline

is an indication that the move that preceded it is losing its potency.

HAMMER
A hammer is a single-line pattern with a small real body that forms
at, or very near, the top of the session’s range. The color of the
body is not relevant—it can be either black or white. The long
lower shadow is typically two or more times the length of the real
body. There should be no upper shadow, or a very short one.
This pattern is meaningful if it forms after a price decline, whether
it is a short-term move or a more significant downtrend.

Tina Logan – Trader’s Roadmap www.tinalogan.com (Rev. April 2016)

Copyright © 2007 All Rights Reserved. May not be duplicated or distributed without permission
 COMMON CANDLESTICK REVERSAL PATTERNS - 5

BULLISH CANDLESTICK REVERSAL PATTERNS (Continued)

INVERTED This single-line bullish pattern forms after a price decline. It has a
HAMMER small real body that forms at, or very near, the bottom of the
session’s range. The color of the body is not relevant—it can be
either black or white. The long upper shadow is typically two or
more times the length of the real body. There should be no lower
shadow, or a very short one.
Although price closes near its low, the long upper shadow shows
that the bulls were successful at staging a rally during the session.

BULLISH This two-candle pattern forms after a price decline. The first
HARAMI candle is a long black body followed in the next session by a small
real body (a spinning top). The second candle can be either black
or white; however, in most instances it is white. The appearance
of a harami is an indication that the market may be losing
momentum.
If the second candle in the formation is a doji instead of a spinning
top, it is referred to as a bullish harami cross. A harami cross can
call a bottom, but seems to be more effective at tops.

BULLISH This two-candle pattern forms after a price decline. The first is a
COUNTER- long black candle. The second candle gaps open sharply lower,
ATTACK LINE ideally below the prior session’s low, with the bears still in control.
But shortly thereafter, price turns up as the bulls engage in a
counter attack.
By the end of the session, the stock has recovered the morning’s
decline and closes at, or very near, the prior session’s close. In
other words, in spite of the sharp decline at the open, the second
session closes virtually unchanged.

PIERCING This two-candle pattern forms after a price decline. The first
PATTERN session is a long black candle. The second session, a white
candle, gaps down open with the bears still in control. Price then
turns up. By the close of the session the white candle penetrates
deeply into the prior black candle’s body showing that the bulls
took control.
An ideal pattern would close at least halfway into the prior black
candle’s body. The deeper the white candle pierces the black
candle’s body, the more likely a reversal will occur.

Tina Logan – Trader’s Roadmap www.tinalogan.com (Rev. April 2016)

Copyright © 2007 All Rights Reserved. May not be duplicated or distributed without permission
 COMMON CANDLESTICK REVERSAL PATTERNS - 6

BULLISH CANDLESTICK REVERSAL PATTERNS (Concluded)

BULLISH This two-candle pattern forms after a price decline. The first
ENGULFING session is a small black real body. The second session is a white
body that completely engulfs the prior session’s smaller black
body. It is a clear signal that the bulls have seized control from
the bears.
The reversal signal is stronger if any of these factors is present:
the engulfing bar is a long candle; the pattern appears after a
sharp decline; there is heavy volume on the engulfing bar.

BULLISH The bullish kicker forms after a price decline. The kicker candle
KICKER opens above the previous black candle’s open and closes in the
opposite direction. The clear kicker signal will have a long black
candle followed by a long white candle.

Bullish kickers often occur around 50- and 200-period moving

averages. They may also appear because of significant news.

MORNING This three-candle pattern forms at the end of a price decline. The
STAR first session is a long black candle. The second session gaps
down open and forms a small black or white body (a spinning top).
This is the “star” portion of the pattern. The third session is a
white candle that intrudes deeply into the body of the first
session’s black candle. If the second session is a doji instead of a
spinning top, it is called a morning doji star and it strengthens the
signal.
An ideal pattern would have a gap between the star (the second
candle) and the bodies of the other two candles. The shadows
may still overlap.

Tina Logan – Trader’s Roadmap www.tinalogan.com (Rev. April 2016)

Copyright © 2007 All Rights Reserved. May not be duplicated or distributed without permission