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Candlestick Patterns Common and Reliable

The document outlines various common and reliable candlestick patterns used in trading. It describes bullish patterns such as Hammer, Bullish Engulfing, and Morning Star, as well as bearish patterns like Shooting Star and Bearish Engulfing. Each pattern is characterized by specific candle formations that indicate potential market reversals or momentum.

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12 views2 pages

Candlestick Patterns Common and Reliable

The document outlines various common and reliable candlestick patterns used in trading. It describes bullish patterns such as Hammer, Bullish Engulfing, and Morning Star, as well as bearish patterns like Shooting Star and Bearish Engulfing. Each pattern is characterized by specific candle formations that indicate potential market reversals or momentum.

Uploaded by

shubhoom
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Common and Reliable Candlestick Patterns

Hammer

Bullish reversal pattern found at the bottom of a downtrend. Small body with a long lower wick.

Inverted Hammer

Bullish reversal pattern with a small body and long upper wick. Appears at the end of a downtrend.

Bullish Engulfing

A small red candle followed by a large green candle that completely engulfs the red one. Indicates strong

buying pressure.

Morning Star

Three-candle pattern: a red candle, a small-bodied candle (can be red or green), and a large green candle.

Signals bullish reversal.

Piercing Line

A red candle followed by a green candle that opens lower but closes above the midpoint of the red candle.

Three White Soldiers

Three consecutive green candles with higher closes. Indicates strong bullish momentum.

Shooting Star

Bearish reversal pattern found at the top of an uptrend. Small body with a long upper wick.

Bearish Engulfing

A small green candle followed by a large red candle engulfing the green. Indicates selling pressure.

Evening Star

Three-candle pattern: a green candle, a small-bodied candle, and a large red candle. Signals bearish

reversal.
Common and Reliable Candlestick Patterns

Dark Cloud Cover

Green candle followed by red candle that opens above the green's high but closes below its midpoint.

Hanging Man

Bearish pattern at the top of an uptrend. Small body and long lower wick. Warns of potential reversal.

Three Black Crows

Three consecutive red candles with lower closes. Indicates strong bearish momentum.

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