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35 Powerful Candlestick Patterns… Save it as PDF

Candlestick patterns have been an integral part of technical analysis for decades. Originally developed by Japanese rice traders in the 18th century, these patterns provide valuable insights into market sentiment and can help traders predict potential price movements. In this blog, we will explore 35 powerful candlestick patterns that every trader should know to enhance their market analysis skills. So, let’s dive in!

  1. Doji: The Doji signifies indecision in the market. It occurs when the opening and closing prices are nearly equal, creating a small-bodied candlestick with long upper and lower wicks.
  2. Hammer: A Hammer candlestick has a small body and a long lower wick. It suggests a potential reversal from a downtrend to an uptrend.
  3. Shooting Star: Opposite to the Hammer, a Shooting Star has a small body and a long upper wick. It indicates a possible trend reversal from an uptrend to a downtrend.
  4. Engulfing Pattern: An Engulfing pattern occurs when a larger candlestick engulfs the previous smaller candlestick. It suggests a reversal in the prevailing trend.
  5. Harami: A Harami pattern consists of a small candlestick within the range of the previous larger candlestick. It indicates a potential trend reversal.
  6. Morning Star: The Morning Star pattern is a bullish reversal pattern that consists of three candles. It signifies a potential shift from a downtrend to an uptrend.
  7. Evening Star: Contrary to the Morning Star, the Evening Star is a bearish reversal pattern that suggests a potential shift from an uptrend to a downtrend.
  8. Dark Cloud Cover: The Dark Cloud Cover pattern occurs when a bearish candlestick engulfs the previous bullish candlestick, suggesting a possible trend reversal.
  9. Piercing Pattern: The Piercing Pattern is a bullish reversal pattern that occurs when a bullish candlestick closes above the midpoint of the previous bearish candlestick.
  10. Hanging Man: The Hanging Man pattern has a small body and a long lower wick, indicating a potential reversal from an uptrend to a downtrend.
  11. Inverted Hammer: Opposite to the Hanging Man, the Inverted Hammer has a small body and a long upper wick. It suggests a potential reversal from a downtrend to an uptrend.
  12. Bullish Harami Cross: This pattern is similar to the Harami but has a Doji instead of a small candlestick. It signifies a possible trend reversal.
  13. Bearish Harami Cross: Similar to the Bullish Harami Cross, this pattern suggests a potential trend reversal but in a bearish direction.
  14. Three White Soldiers: The Three White Soldiers pattern consists of three consecutive bullish candlesticks. It indicates a strong bullish sentiment and potential continuation of an uptrend.
  15. Three Black Crows: Contrary to the Three White Soldiers, the Three Black Crows pattern suggests a strong bearish sentiment and potential continuation of a downtrend.
  16. Bullish Belt Hold: A Bullish Belt Hold occurs when a bullish candlestick opens near the low and closes near the high. It indicates a potential trend reversal.
  17. Bearish Belt Hold: Opposite to the Bullish Belt Hold, a Bearish Belt Hold occurs when a bearish candlestick opens near the high and closes near the low. It suggests a potential reversal.
  18. Tweezer Top: The Tweezer Top pattern forms when two consecutive candlesticks have the same high price. It indicates a potential trend reversal from an uptrend to a downtrend.
  19. Tweezer Bottom: Similar to the Tweezer Top, the Tweezer Bottom pattern suggests a potential reversal from a downtrend to an uptrend.
  20. Morning Doji Star: The Morning Doji Star is a bullish reversal pattern that consists of a Doji followed by a long bullish candlestick. It suggests a potential shift from a downtrend to an uptrend.
  21. Evening Doji Star: Opposite to the Morning Doji Star, the Evening Doji Star is a bearish reversal pattern that suggests a potential shift from an uptrend to a downtrend.
  22. Three Inside Up: The Three Inside Up pattern occurs when a bullish candlestick engulfs the previous bearish candlestick. It suggests a potential trend reversal.
  23. Three Inside Down: Contrary to the Three Inside Up, the Three Inside Down pattern suggests a potential reversal in a bearish direction.
  24. Rising Three Methods: The Rising Three Methods pattern appears during a bullish trend and indicates a brief consolidation before the uptrend resumes.
  25. Falling Three Methods: Similar to the Rising Three Methods, the Falling Three Methods pattern occurs during a bearish trend and signifies a brief consolidation before the downtrend continues.
  26. Bullish Kicking: The Bullish Kicking pattern occurs when a bullish candlestick completely engulfs the previous bearish candlestick. It suggests a strong bullish sentiment.
  27. Bearish Kicking: Opposite to the Bullish Kicking, the Bearish Kicking pattern occurs when a bearish candlestick completely engulfs the previous bullish candlestick. It indicates a strong bearish sentiment.
  28. Morning Star Doji: The Morning Star Doji is a bullish reversal pattern that consists of a Doji followed by a long bullish candlestick. It suggests a potential shift from a downtrend to an uptrend.
  29. Evening Star Doji: Contrary to the Morning Star Doji, the Evening Star Doji is a bearish reversal pattern that suggests a potential shift from an uptrend to a downtrend.
  30. Dragonfly Doji: The Dragonfly Doji has a long lower wick and no upper wick, indicating a potential trend reversal from a downtrend to an uptrend.
  31. Gravestone Doji: Opposite to the Dragonfly Doji, the Gravestone Doji has a long upper wick and no lower wick. It suggests a potential reversal from an uptrend to a downtrend.
  32. Marubozu: A Marubozu is a candlestick with no wicks and a long body. A bullish Marubozu suggests a strong uptrend, while a bearish Marubozu indicates a strong downtrend.
  33. Spinning Top: The Spinning Top has a small body and long upper and lower wicks. It signifies indecision in the market and potential trend reversal.
  34. Homing Pigeon: The Homing Pigeon pattern occurs when a small bullish candlestick follows a long bearish candlestick, suggesting a potential trend reversal.
  35. Ladder Bottom: The Ladder Bottom pattern consists of multiple consecutive bullish candlesticks with increasing lows, indicating a potential reversal from a downtrend to an uptrend.

Conclusion:

Understanding candlestick patterns is crucial for any trader looking to analyze market trends effectively. By familiarizing yourself with these 35 powerful candlestick patterns, you’ll gain valuable insights into market sentiment and be better equipped to make informed trading decisions. Remember, candlestick patterns work best when combined with other technical analysis tools and indicators, so always practice comprehensive market analysis. Happy trading!

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