10/21/23, 3:57 PM Candlestick pattern - Wikipedia 10/21/23, 3:57 PM Candlestick pattern - Wikipedia

Big Black Candle Has an Big White Candle Has an

unusually long black body with a unusually long white body with a
wide range between high and wide range between high and low
Candlestick pattern low. Prices open near the high
and close near the low.
of the day. Prices open near the
low and close near the high.
Considered a bearish pattern. Considered a bullish pattern.
In financial technical analysis, a candlestick pattern is a movement in prices shown graphically
on a candlestick chart that some believe can predict a particular market movement. The
recognition of the pattern is subjective and programs that are used for charting have to rely on Black Body Formed when the White Body Formed when the
predefined rules to match the pattern.[1] There are 42 recognized patterns that can be split into opening price is higher than the closing price is higher than the
simple and complex patterns.[2] Author Thomas Bulkowski takes an in-depth look at 103 closing price. Considered to be a opening price and considered a
candlestick formations, from identification guidelines and statistical analysis of their behaviour to bearish signal. bullish signal.
detailed trading tactics. He makes important discoveries and statistical summaries, as well as a
glossary of relevant terms and a visual index to make candlestick identification easy.[3] Doji Formed when opening and
Long-Legged Doji Consists of a
Doji with very long upper and
closing prices are virtually the
lower shadows. Indicates strong
History same. The lengths of shadows
can vary. If previous are bearish,
forces balanced in opposition. If
previous are bullish, after long
after a Doji, may be ready to
Some of the earliest technical trading analysis was used to track prices of rice in the 18th century. legged doji, may be ready to
bullish.
Much of the credit for candlestick charting goes to Munehisa Homma (1724–1803), a rice bearish.
merchant from Sakata, Japan who traded in the Ojima Rice market in Osaka during the Tokugawa Dragonfly Doji Formed when
Shogunate. According to Steve Nison, however, candlestick charting came later, probably Gravestone Doji Formed when
the opening and the closing
the opening and closing prices are
beginning after 1850.[4] prices are at the highest of the
at the lowest of the day. If it has a
day. If it has a longer lower
longer upper shadow it signals a
shadow it signals a more bullish
Formation of candlestick trend. When appearing at
bearish trend. When it appears at
market top it is considered a
market bottoms it is considered
reversal signal.
A candlestick chart (also called Japanese candlestick to be a reversal signal.
chart or K-line[5]) is a style of financial chart used to describe Hanging Man A black or white
price movements of a security, derivative, or currency. Hammer A black or white
candlestick that consists of a small
candlestick that consists of a
body near the high with little or no
Candlesticks are graphical representations of price movements small body near the high with
upper shadow and a long lower
for a given period of time. little or no upper shadow and a
tail. The lower tail should be two or
long lower tail. Considered a
three times the height of the body.
They are commonly formed by the opening, high, low, and bullish pattern during a
Considered a bearish pattern
closing prices of a financial instrument.[6] The aspects of a candlestick pattern downtrend.
during an uptrend.

If the opening price is above the closing price then a filled Shooting Star A black or white
(normally red or black) candlestick is drawn. Inverted Hammer A black or candlestick that has a small body,
white candlestick in an upside- a long upper shadow and little or
If the closing price is above the opening price, then normally a green or hollow candlestick (white down hammer position. no lower tail. Considered a bearish
with black outline) is shown. pattern in an uptrend.

The filled or hollow portion of the candle is known as the body or real body, and can be long, Long Upper Shadow A black or
Long Lower Shadow A black or
white candlestick with an upper
normal, or short depending on its proportion to the lines above or below it. white candlestick is formed with a
shadow that has a length of 2/3
lower tail that has a length of 2/3
The lines above and below, known as shadows, tails, or wicks, represent the high and low price or more of the total range of the
or more of the total range of the
candlestick. Normally
ranges within a specified time period. candlestick. Normally considered a
considered a bearish signal
bullish signal when it appears
However, not all candlesticks have shadows. when it appears around price
around price support levels.
resistance levels.
Marubozu A long or normal Spinning Top A black or white
Simple patterns candlestick (black or white) with candlestick with a small body. The
no shadow or tail. The high and size of shadows can vary.
the low represent the opening Interpreted as a neutral pattern but
and the closing prices. gains importance when it is part of
other formations.
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Considered a continuation white body. It is considered a into the white body. When it
pattern. reversal signal when it appears appears at the top it is
at the top level. considered a reversal signal.
Shaven Head A black or white It signals a more bearish
Shaven Bottom A black or white trend than the evening star
candlestick with no upper
candlestick with no lower tail. pattern because of the Doji
shadow. [Compared with
[Compare with Inverted Hammer.] that has appeared between
hammer.]
the two bodies.

Complex patterns Morning Doji Star Consists

of a large black body
Morning Star Consists of a
candlestick followed by a Doji
large black body candlestick
that occurred below the
Bearish Harami Consists of an followed by a small body (black
preceding candlestick. On the
unusually large white body Bearish Harami Cross A or white) that occurs below the
following day, a third white
followed by a small black body large white body followed by large black body candlestick.
body candlestick is formed
(contained within a large white a Doji. Considered a reversal On the following day, a third
that closes well into the black
body). It is considered a bearish signal when it appears at the white body candlestick is
body candlestick which
pattern when preceded by an top. formed that closes well into the
appeared before the Doji. It is
uptrend. black body candlestick. It is
considered a major reversal
considered a major reversal
signal that is more bullish
Bullish 3-Method signal when it appears at the
Bearish 3-Method Formation than the regular morning star
Formation (Also known as bottom.
(Also known as "Falling Three") pattern because of the
"Rising Three") Consists of a existence of the Doji.
A long black body followed by
long white body followed by
three small bodies (normally
three small bodies (normally
white) and a long black body. Rising Window A window
black) and a long white body. Falling Window A window
The three white bodies are (gap) is created when the low
The three black bodies are (gap) is created when the high
contained within this jedi range of the second candlestick is
contained within the range of of the second candlestick is
of the first black body. This is above the high of the
first white body. This is below the low of the preceding
considered a bearish preceding candlestick. It is
considered a bullish candlestick. It is considered that
continuation pattern. considered that the window
continuation pattern. the window should be filled with
should provide support to the
a probable resistance.
selling pressure.
Bullish Harami Consists of an
unusually large black body Bullish Harami Cross A
Three White Soldiers
followed by a small white body large black body followed by Three Black Crows Consists of
Consists of three long white
(contained within large black a Doji. It is considered a three long black candlesticks
candlesticks with
body). It is considered a bullish reversal signal when with consecutively lower closes.
consecutively higher closes.
pattern when preceded by a preceded by a downtrend. The closing prices are near to
The closing prices are near to
downtrend. or at their lows. When it
or at their highs. When it
appears at the top it is
appears at the bottom it is
Engulfing Bearish Line Engulfing Bullish Consists considered a top reversal
interpreted as a bottom
Consists of a small white body of a small black body that is signal.
reversal signal.
that is contained within the contained within the following
following large black large white candlestick.
On Neckline In a downtrend,
candlestick. When it appears at When it appears at the
consists of a black candlestick Doji Star Consists of a black
the top it is considered a major bottom it is interpreted as a
followed by a small body white or white candlestick followed
reversal signal. major reversal signal.
candlestick with its close is near by a Doji that gaps above or
the low of the preceding black below these. It is considered
Evening Star Consists of a Evening Doji Star Consists candlestick. It is considered a a reversal signal with
large white body candlestick of three candlesticks. First is bearish pattern when the low of confirmation during the next
followed by a small body a large white body the white candlestick is trading day.
candlestick (black or white) that candlestick followed by a Doji penetrated.
gaps above the previous. The that gaps above the white
third is a black body candlestick body. The third candlestick is
that closes well within the large a black body that closes well
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Tweezer Bottoms Consists Darth Maul The correct term

Tweezer Tops Consists of two
of two or more candlesticks for this candle is a "high
or more candlesticks with Dark Cloud Cover Consists of
with matching bottoms. The wave spinning top", a small
matching tops. The candlesticks a long white candlestick
candlesticks may or may not candle body with unusually
may or may not be consecutive followed by a black candlestick
be consecutive and their large upper and lower
and their sizes or colours can that opens above the high of the
sizes or colours can vary. It is shadows, suggesting that the
vary. It is considered a minor white candlestick and closes
considered a minor reversal prior trend has run into a
reversal signal that becomes well into the body of the white
signal that becomes more period of indecision. The term
more important when the candlestick. It is considered a
important when the "Darth Maul" comes from
candlesticks form another bearish reversal signal during
candlesticks form another Star Wars, as the candle
pattern. an uptrend.
pattern. looks somewhat like a
lightsaber.
Piercing Line Consists of a
Dark Cloud Cover Consists of
a long white candlestick
black candlestick followed by
a white candlestick that
References
followed by a black candlestick
opens lower than the low of 1. Lebeau, Charles (1991). Technical Traders Guide to Computer Analysis of the Futures Markets
that opens above the high of the
the preceding but closes
white candlestick and closes (https://www.amazon.com/Technical-Traders-Computer-Analysis-Futures/dp/1556234686/ref=s
more than halfway into the
well into the body of the white r_1_1?s=books&ie=UTF8&qid=1326806415&sr=1-1).
black body candlestick. It is
candlestick. It is considered a 2. "16 candlestick patterns every trader should know" (https://www.ig.com/en/trading-strategies/16
considered a reversal signal
bearish reversal signal during -candlestick-patterns-every-trader-should-know-180615). Retrieved 4 July 2020.
when it appears at the
an uptrend.
bottom. 3. "Bulkowski's Stock Market Studies" (https://thepatternsite.com/studies.html).
thepatternsite.com. Retrieved 2023-03-22.
Darth Maul The correct term for 4. "Introduction to Candlesticks" (http://stockcharts.com/school/doku.php?id=chart_school:chart_a
this candle is a "high wave nalysis:introduction_to_candlesticks). StockCharts. Stockcharts.com. Retrieved 29 June 2016.
Judas Candle Consists of a
spinning top", a small candle 5. Tao, Lv; Hao, Yongtao; Yijie, Hao; Chunfeng, Shen (2017). "K-Line Patterns' Predictive Power
large black candle followed
body with unusually large upper Analysis Using the Methods of Similarity Match and Clustering" (https://doi.org/10.1155%2F201
by a smaller white candle
and lower shadows, suggesting 7%2F3096917). Mathematical Problems in Engineering. 2017: 1–11.
with a lower tail which is
that the prior trend has run into doi:10.1155/2017/3096917 (https://doi.org/10.1155%2F2017%2F3096917).
equal to the black candle in
a period of indecision. The term
length. This is indicative of 6. "Candlestick Patterns" (https://thelazytrader.com/candlestick-patterns/). Thelazytrader.
"Darth Maul" comes from Star
price capitulation. Thelazytrader.com. Retrieved 21 July 2022.
Wars, as the candle looks
somewhat like a lightsaber.
External links
Island reversal In both stock
trading and financial technical Candlestick Patterns Explained (https://www.alphaexcapital.com/candlestick-patterns) at
analysis, an island reversal is Darth Maul The correct term alphaexcapital.com
a candlestick pattern with for this candle is a "high Candlestick Patterns Explained (https://www.alphaexcapital.com/candlestick-patterns) at
compact trading activity within a wave spinning top", a small Finoहिंदी.com
range of prices, separated from candle body with unusually
the move preceding it. A large upper and lower
"candlestick pattern" is a shadows, suggesting that the Retrieved from "https://en.wikipedia.org/w/index.php?title=Candlestick_pattern&oldid=1179751019"
movement in prices shown prior trend has run into a
graphically on a candlestick period of indecision. The term
chart. This separation shown on "Darth Maul" comes from
the chart, is said to be caused Star Wars, as the candle
by an exhaustion gap and the looks somewhat like a
subsequent move in the lightsaber.
opposite direction occurs as a
result of a breakaway gap.

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