Learn

37 Candlestick Patterns Dictionary

Introduction

All of the 37 candlestick patterns have been covered in this dictionary of candlestick patterns. These patterns have a high success ratio so we provided a fair to each candle to raise the likelihood of winning in trading.

Here is given a brief description of each of the 37 candlestick patterns dictionary.

Wicks

One of the most significant Japanese candlestick patterns is the Doji, which appears when the market opens and closes at the same price, indicating that buyers and sellers are equally uncertain and that no one is in charge of the market. The two types of Doji patterns are discussed here.

Candlestick

Candlesticks are bars that can be used to provide information regarding price movement. The candle delivers four different concepts. The open price, the close price, the high price, and the low price are depicted by the candles. Because of their adaptability, candlesticks can be used both independently and in conjunction with other technical analysis tools like momentum oscillators and moving averages. Before we dive into the types of candlestick patterns, it is important to understand the basics of candlesticks. 

 

The candlesticks are formed on a candlestick chart. This chart has a vertical and horizontal axis. The vertical axis shows the price, while the horizontal axis shows the time. The candlesticks show the four concepts mentioned earlier in this manner.

Wick

The thin lines that extend beyond the candle’s rectangular body are known as the wicks or shadows. The wicks stand for the high and low prices at that time. If a candlestick’s close is higher than its open and it has a long body, this means that buyers are stronger and are controlling the market at this moment. Long bodies are a sign of strong buying or selling pressure.

In contrast, a bearish candlestick with a lengthy body and an open above the close indicates that the market is under the influence of selling pressure within the selected time frame. Small and short bodies suggest that there has been minimal purchasing or selling.

 

One of the most significant Japanese candlestick patterns is the Doji, which appears when the market opens and closes at the same price, indicating that buyers and sellers are equally uncertain and that no one is in charge of the market. The two types of Doji patterns are discussed here.

Now that you have get an idea about what a candlestick is, the following is the candlestick patterns dictionary comprising 37 different styles.

Dragonfly Doji

When the open high and close are the same price or almost the same price, a bullish candlestick pattern known as the dragonfly Doji is generated. The lengthy lower tail of the dragonfly Doji, which depicts the buyers’ resistance and attempts to drive the market upward, is what makes it unique. The extended lower tail indicates that the forces of supply and demand are getting close to finding equilibrium and that the trend may be about to undergo a significant turning event.

Dragonfly Doji

Morning star Doji

The morning star pattern, which consists of three candlesticks and is seen as a bullish reversal pattern, frequently appears near the bottom of a downtrend. The fact that the first candlestick is bearish shows that sellers continue to control the market. Smaller than the first candle, the second candle shows that sellers are in charge but are not able to drive the market significantly lower. This candle can be bullish or bearish. A notable trend reversal indication is held by the third candle, a bullish candlestick that gapped up on open and closed over the midpoint of the body. When this pattern appears at the bottom of a downtrend close to a support level, it is seen as a strong trend reversal signal. The morning star pattern demonstrates how buyers won the market’s control from sellers.

Morning Doji Star

Evening Star Doji

The evening star pattern, which typically appears at the peak of an uptrend, is regarded as a bearish reversal pattern. Three candlesticks make up the pattern. A bullish candle is the first one to appear. Smaller than the first candle, the second candle can be bullish, bearish, a Doji, or any other type of candlestick. The third candle is the bearish candle. In general, the evening star pattern is the morning star pattern’s bearish counterpart.

The Engulfing bar is created when it completely engulfs the preceding candle, as indicated by its name. More than one prior candle may be engulfed by the engulfing bar, but only if at least one candle has been completely engulfed.

Evening Star Doji

Piercing line

A Piercing line is a bullish signal that happens in the midst of a decline when a bullish candle opens at a new low and then closes at a level at least halfway up the body of the prior bar. As a two-bar trend reversal indicator, this signal is accurate in relation to the height of the second bullish bar.

Piercing line

 

Dark Cloud Cover

Dark Cloud Cover is the two-candle bearish reversal pattern, which appears at the peak of a bullish trend, and is the bearish counterpart to the piercing line. A bearish candle opens at a new high and closes at least halfway down the body of the bar before it follows the first bullish candle. The size of the second candle directly affects the strength of the reversal signal.

Dark Cloud Cover

Bearish Engulfing bar

Undoubtedly one of the most significant candlestick patterns is the bearish engulfing. Two bodies make up this candlestick pattern. In other words, the second body engulfs the first body since the first is smaller. This alerts us to the fact that sellers are in charge of the market in the scenario of a bearish engulfing bar. This pattern suggests that sellers are absorbing buyers at the peak of an upswing, which denotes a trend reversal. 

Bearish Engulfing

Bullish Engulfing bar

Two candlesticks make up the bullish engulfing bar. The first is small, and the next is the engulfing bar. This pattern indicates that buyers will eventually seize control of the market, which is no longer under the authority of sellers. In the midst of an upswing, the formation of a bullish engulfing candle signifies a continuation signal. The reversal is significantly more potent when a bullish engulfing candle appears at the bottom of a downtrend since it signifies a capitulation bottom.

Bearish Engulfing bar

Hammer (Pin Bar)

The Hammer candlestick forms when the open high, and close are almost equal in value. It is distinguished by a long lower shadow showing buyers’ bullish rejection and desire to drive the market higher. This candle develops when sellers attempt to drive the market lower after the opening but are denied by buyers, causing the market to close above its entry point.

Hammer

Shooting Star

A shooting formation is generated when the open, low, and close are almost the same price. This candle has a short body and a long upper shadow. It is the hammer’s bearish counterpart. According to specialists, the shadow should be twice as long as the actual body. This pattern signals a negative reversal when it appears during an uptrend. This pattern is formed when buyers attempt to drive the market higher but are rejected by selling pressure.

Shooting Star

Inside Bar (Harami)

Two candlesticks make up the Harami pattern called “pregnant” in Japanese. It is seen as a reversal and continuation pattern. A smaller candle, known as the baby candle, is placed after the larger candle in the arrangement, which is known as the mother candle. The second candle must close outside the first for the Harami pattern to be acceptable. When this candlestick appears at the peak of an uptrend, it is seen as a negative reversal indication, and when it appears at the bottom of a downtrend, it is regarded as a positive signal.

Inside Bar

Tweezer Top

The tweezer’s top pattern, which forms at an uptrend’s peak, is seen as a bearish reversal pattern. A bullish candlestick appears first, then a bearish candlestick. This happens during an uptrend when buyers drive the price higher, giving the impression that the market is continuing to move higher. However, sellers shocked purchasers by driving the market lower and closing the bullish candles open. This price action pattern indicates a bullish trend reversal.

Tweezer Top

Tweezer Bottom

Next in the candlestick patterns dictionary is the tweezers bottom, which occurs during a downtrend when sellers push the market lower. At the time, it appears that everything is fine, but the following session’s price closes above or roughly at the same price as the first bearish candle, indicating that buyers are on their way to changing the market’s direction. A negative reversal is likely to occur if this price action occurs close to a level of support.

Tweezer Bottom

 

Three White Soldiers

This three-candled bullish pattern suggests that a bearish trend will reverse at its lowest point. The three bullish candlesticks open inside the preceding candlestick’s body and close near the day’s highest point. All three candles should be powerful bullish candles with short wicks and close proximity to the peak; this rule applies to all three candles. These high closings indicate a significant shift in market sentiment from negative to positive.

Three White Soldiers

Three Black Crows

In contrast to “Three White Soldiers,” this three-candle pattern indicates a shift away from bullish control at the peak of an upswing. It comprises three bearish bars that open within the body of the bar before them and shut beneath their closing.

Three Black Crows

Inside Bar

A two-bar price action trading approach known as an “inside bar” pattern occurs when the inner bar is smaller and falls within the high-to-low range of the prior bar, meaning that the inside bar’s high and low are greater than those of the prior bar. Its position in relation to the previous bar may be at the top, middle, or bottom. Some traders define an inside bar more broadly, allowing the mother bar’s and the inside bar’s highs to equal or both bars’ lows to equal. However, most traders do not normally consider two bars with identical high and low to be inside bars.

Inside Bar

Long-legged Doji

The long-legged Doji is a candlestick that has roughly the same opening and closing prices and long upper and lower shadows. The pattern expresses uncertainty and is especially notable when it follows a sharp increase or fall.

Long-legged Doji

Three Outside Down

A bearish candlestick pattern known as “three outside down” consists of three candlesticks arranged in a certain configuration that denotes a bullish trend reversal. A little candlestick making a lower bottom after an engulfing candlestick serves as an outer bar to signal the move from a bullish to a negative trend.

Three Outside Down

Bullish Belt Hold

A chart pattern known as a bullish belt hold line appears when an asset is moving downward. The asset eventually transforms into a candlestick with a large body and no upper or lower shadows after dropping for a while. The candlestick may occasionally cast a tiny higher shadow. This makes it a reversal pattern that can alert a trader to enter a bullish position.

Bullish Belt Hold

Bearish Belt Hold

Two candlesticks make up the Bearish Belt Hold, the first of which is bullish and the second of which is bearish. The first candle should be bullish and be a part of a trend that is trending upward. The candle must open with a gap and shut at or very close to the previous candle’s close.

Bearish Belt Hold

Rising Window

The Rising Window is discussed next in this candlestick patterns dictionary which is a continuation pattern that is bullish in nature. It appears while in an uptrend. Any two types of candles may be used in the pattern. The price difference between the high and low of the first and second candles is the pattern’s most important characteristic. Resistance to selling pressure is represented by the space between two bars. 

Rising Window

Falling Window

Two bearish candlesticks with a down gap between them make up the candlestick pattern known as the “falling window.” The down gap is the distance between the high and low of the preceding and most recent candlesticks. This pattern indicates a bearish continuation.

Falling Window

Falling Three Method

A bearish trend continuation pattern is known as the falling three methods forms within a bearish trend. It is a suggestion for an extension of the present trend. It is a five-candle candlestick pattern that moves in the direction of the trend and has the first and last candles bearish. Corrective momentum is shown from the second to fourth candles after the first bearish candle. The continuation pattern ends with the fifth bearish candle.

Falling Three Method

Rising Three Method

The rising three methods form within a bullish trend and are a bullish continuation pattern. The price will probably continue to move in the direction of the current bullish trend once the candlestick pattern is finished unless a big reversal situation emerges.

Rising Three Method

Bullish Abandoned Baby

The bullish abandoned baby pattern is utilized by traders to open a buy position. It indicates a reversal to an uptrend. It is made up of three candlesticks and forms near the end of a downtrend. A Doji candle that spans down follows the first candlestick, which is a sizable bearish candle. The third candlestick, which often represents a bullish candle, opens higher than the Doji.

Bullish Abandoned Baby

Bearish Abandoned Baby

The bearish abandoned baby pattern is utilized by traders to exit long positions and enter short positions. This is because it indicates a reversal in the downtrend. It is made up of three candlesticks and forms at the peak of an uptrend. A Doji candle that gaps up follows the first candlestick, which is a sizable bullish sign. The third candlestick, which typically indicates a bearish trend, opens lower than the Doji.

Bearish Abandoned Baby

High Wave

A candlestick pattern called the “High Wave” has larger wicks and shadows than the typical candlestick. The candlestick’s body is little in comparison to the shadows. This candlestick pattern indicates that market participants are choosing their path. Big traders utilize it as a stop-loss hunting pattern. 

High Wave

Three Star in South

Next in the candlestick patterns dictionary are the three bearish candlesticks combined to form the Three Stars in the South. It is a bullish reversal candlestick pattern. On the candlestick chart, there is a very small chance that this candlestick pattern will appear. However, it can still be utilized in trading for a variety of things, such as trend analysis.

Three Star in South

Deliberation

A trend reversal candlestick pattern known as the “Deliberation Candlestick Pattern” is composed of three consecutive, properly spaced bullish candlesticks. There will be a huge bullish candlestick in the first one. The second candlestick must start above the preceding candlestick’s beginning price and end above the prior candlestick’s high. A modest body and the same opening price should characterize the last candlestick. It can close either above or below the high of a preceding candlestick. But the candlestick should be positive.

Deliberation

Bearish kicker

A candlestick pattern called a “bearish kicker,” which consists of two candles, is said to indicate that a downward movement is about to occur. A bearish kicker, which can occur in either an uptrend or a downtrend, is made up of a bearish candle that was preceded by a bullish candle and a gap to the downside.

Bearish kicker

Bullish Kicker

In a bullish kicker pattern, a bearish candlestick is first followed by a bullish candlestick that opens above the black candlestick, forming a significant upward gap.

Bullish Kicker

On-neck 

The on-neck pattern discussed in this candlestick patterns dictionary happens when a long real body down candle is followed by a short real body up a candle that gaps down on the open but closes similar to the prior candle’s close. Because the closing prices of the two candles are equal to or nearly equal, forming a horizontal neckline, the pattern is known as a neckline. 

On-neck

Upside Tasuki Gap

Upside Tasuki Gap is a bullish continuation candlestick pattern that develops during an uptrend that is still active. The first candlestick in this three-candle pattern is a long-bodied bullish candlestick, and the second candlestick, which was produced following a gap up, is likewise a bullish candlestick. The third candlestick is the bearish candle that closes the space left between the first two bullish candlesticks.

Upside Tasuki Gap

Downside Tasuki Gap

In the middle of a decline, the Downside Tasuki Gap develops. This is a bearish continuation pattern. A negative gap and a second bearish candle are displayed after a bearish candle. The third candle, which is bullish, closes exactly in the space between the first two bars.

Downside Tasuki Gap

Bearish Breakaway

Bearish breakaway consists of five candlesticks. This is a bearish reversal candlestick pattern with a gap zone. A bullish price trend will change into a bearish one after developing this candlestick pattern.

Bearish Breakaway

Matching High

A bearish reversal candlestick pattern called “matching high” consists of two bullish candlesticks that share the same high. There are no upper-side shadows. In this pattern, the second candlestick begins with a gap down.

Matching High

Matching Low

The candlestick pattern known as “Matching Low” is a bullish trend reversal that comprises two bearish candlesticks. Both have similar closing prices. There are no shadows on the lower side of the candlesticks.

Matching Low

Advance Block

Last in the 37 candlestick patterns dictionary are the three bullish candlesticks that make up the bearish reversal candlestick pattern known as the advance block. The price trend will change from bullish to bearish as a response. It will therefore form at the peak of the upward trend. Due to a single pattern and infrequent repetitions on the price chart, it lacks a bullish reversal.

Advance Block

Conclusion

To sum up this candlestick patterns dictionary, by analyzing a candlestick, you may learn important details about the price’s open, high, low, and close, which will help you to understand how the price has moved. Even if you have a $100,000 trading account, you cannot influence the market’s direction or move it. You can learn what the large players are doing by using candlestick patterns, which also assist in determining when to enter, quit, and avoid the market.

Saman Ali

Saman Ali is a Professional Financial Researcher, Quantitative Analyst and an Experienced Writer for more than 5 years. Saman’s main passion is for Cryptocurrencies, Stocks, Forex and Blockchain Technology. She holds an MBA in Finance and has specializations in producing high quality content about Cryptocurrencies, FX, Broker’s review, Price Predictions, Fundamental & Technical Analysis, and Educational Content.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also
Close
Back to top button