Candle sticks

Abandoned baby bearish1
1. Definition

This is a three candlestick pattern signaling a major bottom reversal. It is exactly the same as the Bullish Morning Doji Star with one important difference. The shadows on the Doji must also gap below the shadows of the first and third days. Its name comes from the second day of the pattern which floats out on the chart by itself like an abandoned baby of the first and third days. Basically the pattern consists of a black candlestick followed by a Doji that gaps away (including shadows) from the prior black candlestick and the following white candlestick whose closing is well into the first black body.

Recognition Criteria

1. The market is characterized by a prevailing downtrend.
2. A black candlestick is observed on the first day.
3. Then we see a Doji on the second day whose shadows gap below the previous day?s lower shadow.
4. Third day?s white candlestick gaps in the opposite direction with no shadows overlapping.

Pattern Requirements and Flexibility

The Bullish Abandoned Baby should start with a black candlestick that is not short and it must continue with a Doji that makes a gap away from the prior candlestick (including shadows). The third day of the pattern is a white candlestick. The gap between the low of this candlestick and the high of the Doji may be ignored. The white candlestick must close well into the black candlestick that appears at the beginning of the pattern. The extent of how high this candlestick must close is defined according to the other candlesticks belonging to the pattern. The third day?s closing must reach the midpoint between the first day?s opening and the second day?s lowest body level.

Trader?s Behavior

A black candlestick confirms the continuation of the downtrend that is in progress. The appearance of the Doji that causes a huge gap indicates that the bears are still pushing down the price. The tight price action between the open and close shows indecision and reflects deterioration in the prior trend. In the third day the body of the candlestick is above the previous day trying to cover some of the ground from the down day.

Buy/Stop Loss Levels

The confirmation level is defined as the last close. Prices should cross above this level for confirmation. The stop loss level is defined as the lower of the last two lows. Following the BUY if prices go down instead of going up and close or make two consecutive daily lows below the stop loss level while no bearish pattern is detected then the stop loss is triggered. .....

Bearish Advance block
2. Definition

This pattern consists of three consecutive white candlesticks with consecutively higher closes in an uptrend.

Recognition Criteria

1. The market is characterized by a prevailing uptrend.
2. A white candlestick appears on the first day.
3. The next two days are white candlesticks with each closing above the previous day .....

Bearish belt hold
3. Definition

Bearish Belt Hold is a single candlestick pattern basically a Black Opening Marubozu that occurs in an uptrend. It opens on the high of the day and then prices begin to fall during the day against the overall trend of the market which eventually stops with a close near the low leaving a small shadow at the bottom of the candle. If longer bodies characterize the Belt Hold then the resistance they offer against the trend will be even much stronger.

Recognition Criteria

1. The market is characterized by a prevailing uptrend.
2. The market gaps up and opens at its high and closes near to the low of the day.
3. A long black body that has no upper shadow (a Black Opening Marubozu) is observed.

Pattern Requirements and Flexibility

A Black Opening Marubozu or a Black Marubozu (with no upper or lower shadow) should be seen and it should open higher than the two preceding white candlesticks.

Trader .....

Bearish breakaway
4. Definition

This four candlestick pattern starts with a strong white candlestick. The next three days after the upside gap set consecutively higher prices. However the last day completely erases the limited price gains of up days and closes inside the gap between the first and second days. This suggests a short term reversal.

Recognition Criteria

1. The color of the first strong white day represents the current uptrend. 2. The second day is also white and the body gaps in the direction of the trend. 3. The third and fourth days continue the trend direction. It is better if the third day is black but it may also be white as the fourth day. 4. The fifth day is a black one that closes inside the gap that is formed between the first two days.

Pattern Requirements and Flexibility

The first white candlestick of the Bearish Breakaway should not be short. However the following three white candlesticks after the gap can be short while the third candlestick in the middle can be black too. The last black day should close inside the gap but should not fill the gap.

Trader .....

Bearish doji star
5. Definition

This pattern appears in an uptrend and warns that the trend will change. It consists of a white candlestick and a Doji with a gap up at the opening. If the Doji is in the form of an Umbrella the pattern is called .....

Bearish engulfing
6. Definition

This pattern is characterized by a large black body engulfing a preceding smaller white body which appears during an uptrend. The black body does not necessarily engulf the shadows of the white body but totally engulfs the body itself. This is an important top reversal signal

. Recognition Criteria

1. The market is characterized by a prevailing uptrend.
2. A white body is formed observed on the first day.
3. The black body that is formed on the second day completely engulfs the white body of the preceding day.

Pattern Requirements and Flexibility

The length of the first white candlestick is not important. It can even be a Doji. The second one however has to be a normal or long black candlestick. Either the body tops or the body bottoms of the two candlesticks may be at the same level but in any case the black body of the Bearish Engulfing Pattern should be longer than the previous white body.

Trader .....

Bearish harami
7. Definition

This pattern consists of a white body and a small black body that is completely inside the range of the white body. If an outline is drawn for the pattern it looks like a pregnant woman. This is not a coincidence. .....

Bearish harami cross
8. Definition

This is a major bearish reversal pattern which is even more significant than a regular Bearish Harami. The outline again looks like a pregnant woman as with the Bearish Harami Pattern. However now the baby is a Doji. Basically the pattern is characterized by a white body followed by a Doji that is completely inside the range of the prior white body.

Recognition Criteria

1. The market is characterized by a prevailing uptrend.
2. A white body is observed on the first day.
3. The Doji that is formed on the second day is completely engulfed by the body of the first day.

Pattern Requirements and Flexibility

The Bearish Harami Cross consists of two candlesticks in which the body of the first white candlestick engulfs the body of the following Doji. The body of the first candlestick may be short.

Trader .....

Bearish kicking
9. Definition

This pattern consists firstly of a white Marubozu and then a black Marubozu. After the white Marubozu the market opens below the prior session .....

Bearish meeting lines
10. Definition

This pattern occurs during an uptrend. The first day .....

Bearish tri star
11. Definition

The pattern is a sequence of three Doji. The occurrence of this pattern is extremely rare so when it occurs it should not be ignored.

Recognition Criteria

1. The market is characterized by a prevailing uptrend.
2. Three consecutive Doji are seen.
3. The second day gaps above the first and the third.

Pattern Requirements and Flexibility

The Bearish Three Star consists of three consecutive Doji in which the second Doji gaps above the two other Doji. It is sufficient that the gap is a body gap. There is no need for a gap between shadows.

Trader?s Behavior

In the case of a Bearish Tri Star we have a market which is in an uptrend for a long time. However the weakening trend is probably indicated by the bodies that are becoming smaller. The first doji is a matter of concern. The second Doji clearly indicates that market is losing its direction. Finally the third doji warns that the uptrend is over. This pattern indicates too much indecision leading to the reversal of positions.

Sell/Stop Loss Levels

The confirmation level is defined as the last close. Prices should cross below this level for confirmation. The stop loss level is defined as the higher of the last two highs. Following the bearish signal if prices go up instead of going down and close or make two consecutive daily highs above the stop loss level while no bullish pattern is detected then the stop loss is triggered. .....

Belt hold bearish
12. Definition

Bearish Belt Hold is a single candlestick pattern basically a Black Opening Marubozu that occurs in an uptrend. It opens on the high of the day and then prices begin to fall during the day against the overall trend of the market which eventually stops with a close near the low leaving a small shadow at the bottom of the candle. If longer bodies characterize the Belt Hold then the resistance they offer against the trend will be even much stronger.

Recognition Criteria

1. The market is characterized by a prevailing uptrend.
2. The market gaps up and opens at its high and closes near to the low of the day.
3. A long black body that has no upper shadow (a Black Opening Marubozu) is observed.

Pattern Requirements and Flexibility

A Black Opening Marubozu or a Black Marubozu (with no upper or lower shadow) should be seen and it should open higher than the two preceding white candlesticks.

Trader?s Behavior

The market opens higher with a significant gap in the direction of the prevailing uptrend. So the first impression reflected in the opening price is the continuation of the uptrend. However after the market opening things change rapidly and the market moves in the opposite direction from there on. This causes much concern among the bulls leading them to sell many positions which could reverse the direction of the trend and start a sell-off.

Sell/Stop Loss Levels

The confirmation level is defined as the last close. Prices should cross below this level for confirmation. The stop loss level is defined as the last high. Following the bearish signal if prices go up instead of going down and close or make two consecutive daily highs above the stop loss level while no bullish pattern is detected then the stop loss is triggered. .....

Belt hold bullish
13. Definition

Bullish Belt Hold is a single candlestick pattern basically a White Opening Marubozu that occurs in a downtrend. It opens on the low of the day and then a rally begins during the day against the overall trend of the market which eventually stops with a close near the high leaving a small shadow on top of the candle. If longer bodies characterize the Belt Hold then the resistance they offer against the trend will be even much stronger.

Recognition Criteria

1. The market is characterized by a prevailing downtrend.
2. The market gaps down and opens at its low and closes near to the high of the day.
3. A long white body that has no lower shadow (a White Opening Marubozu) is observed.

Pattern Requirements and Flexibility

A White Opening Marubozu or a White Marubozu (with no upper or lower shadow) should be seen in a Bullish Belt Hold and it should open lower than the two preceding black candlesticks.

Trader?s Behavior

The market opens lower with a significant gap in the direction of the prevailing downtrend. So the first impression reflected in the opening price is the continuation of the downtrend. However after the market opening things change rapidly and the market moves in the opposite direction from there on. This causes much concern among the short traders leading to the covering of many positions which could reverse the direction of the trend and start a rally for the bulls.

Buy/Stop Loss Levels

The confirmation level is defined as the last close. Prices should cross above this level for confirmation. The stop loss level is defined as the last low. Following the BUY if prices go down instead of going up and close or make two consecutive daily lows below the stop loss level while no bearish pattern is detected then the stop loss is triggered. .....

Black candle
14. Definition

This candlestick implies normal selling pressure and shows that prices declined during the day from open to close and the sellers were in control.

Recognition Criteria

1. The body of the candlestick is black with normal length.

Candlestick Requirements and Flexibility

The black body of the candlestick should be of average length. The shadows .....

Black marubozu
15. Definition

This candlestick represents extreme bearishness and is characterized by a long black body having no shadows on either end.

Recognition Criteria

1. The body of the candlestick is black and long.
2. There are no upper or lower shadows.

Candlestick Requirements and Flexibility

The black body of the candlestick should be longer relative to the other candlesticks on the chart. Shadows should not exist.

Candlestick Requirements and Flexibility

The black body of the candlestick should be longer relative to the other candlesticks on the chart. Shadows should not exist.

Trader's Behavior

A Black Marubozu forms when the opening price is equal to the high of the day and the closing price is equal to the low of the day. This shows that the sellers controlled the price action from the first trade to the last trade. The day opens and prices continue to move down all day without stopping thus forming a long black day with no upper shadow. The day also closes at the low of the day with no lower shadow. This candlestick is generally bearish. However its position within the broader technical picture is also important. It may show a potential turning point and suggest that prices have reached a resistance level after an extended rally. If it is seen after a long decline it may signal panic or capitulation a final sell off attempt before bulls regain control. Still the candlestick alone is not reliable enough to decide about the direction of the markets since it reflects only one day's trading. .....

Breakaway bullish
16. Definition

This four candlestick pattern starts with a strong white candlestick. The next three days after the upside gap set consecutively higher prices. However the last day completely erases the limited price gains of up days and closes inside the gap between the first and second days. This suggests a short term reversal.

Recognition Criteria

1. The color of the first strong white day represents the current uptrend. 2. The second day is also white and the body gaps in the direction of the trend. 3. The third and fourth days continue the trend direction. It is better if the third day is black but it may also be white as the fourth day. 4. The fifth day is a black one that closes inside the gap that is formed between the first two days.

Pattern Requirements and Flexibility

The first white candlestick of the Bearish Breakaway should not be short. However the following three white candlesticks after the gap can be short while the third candlestick in the middle can be black too. The last black day should close inside the gap but should not fill the gap.

Trader .....

Bullish abandoned baby
17. Definition

This five candlestick pattern starts with a strong black candlestick. The next three days after the downside gap set consecutively lower prices. However the last day completely erases the limited losses of down days and closes inside the gap between the first and second days. This suggests a short term reversal.

Recognition Criteria

1. The color of the first strong black day represents the current downtrend.
2. The second day is also black and the body gaps in the direction of the trend.
3. The third and fourth days continue the trend direction. It is better if the third day is white but it may also be black as the fourth day.
4. The fifth day is a white one that closes inside the gap formed between the first two days.

Pattern Requirements and Flexibility

The first black candlestick of the Bullish Breakaway should not be short. However the following three black candlesticks after the gap can be short while the third candlestick in the middle can be white too. The last white day should close inside the gap but should not close the gap.

Trader .....

Bullish belt hold
18. Definition

This is a three candlestick pattern signaling a major bottom reversal. It is exactly the same as the Bullish Morning Doji Star with one important difference. The shadows on the Doji must also gap below the shadows of the first and third days. Its name comes from the second day of the pattern which floats out on the chart by itself like an abandoned baby of the first and third days. Basically the pattern consists of a black candlestick followed by a Doji that gaps away (including shadows) from the prior black candlestick and the following white candlestick whose closing is well into the first black body.

Recognition Criteria

1. The market is characterized by a prevailing downtrend.
2. A black candlestick is observed on the first day.
3. Then we see a Doji on the second day whose shadows gap below the previous day .....

Bullish breakaway
19. Definition

Bullish Belt Hold is a single candlestick pattern basically a White Opening Marubozu that occurs in a downtrend. It opens on the low of the day and then a rally begins during the day against the overall trend of the market which eventually stops with a close near the high leaving a small shadow on top of the candle. If longer bodies characterize the Belt Hold then the resistance they offer against the trend will be even much stronger.

Recognition Criteria

1. The market is characterized by a prevailing downtrend.
2. The market gaps down and opens at its low and closes near to the high of the day.
3. A long white body that has no lower shadow (a White Opening Marubozu) is observed.
Pattern Requirements and Flexibility

A White Opening Marubozu or a White Marubozu (with no upper or lower shadow) should be seen in a Bullish Belt Hold and it should open lower than the two preceding black candlesticks.

Trader .....

Bullish doji star
20. Definition

This five candlestick pattern starts with a strong black candlestick. The next three days after the downside gap set consecutively lower prices. However the last day completely erases the limited losses of down days and closes inside the gap between the first and second days. This suggests a short term reversal.

Recognition Criteria

1. The color of the first strong black day represents the current downtrend.
2. The second day is also black and the body gaps in the direction of the trend.
3. The third and fourth days continue the trend direction. It is better if the third day is white but it may also be black as the fourth day.
4. The fifth day is a white one that closes inside the gap formed between the first two days.
Pattern Requirements and Flexibility

The first black candlestick of the Bullish Breakaway should not be short. However the following three black candlesticks after the gap can be short while the third candlestick in the middle can be white too. The last white day should close inside the gap but should not close the gap.

Trader .....

Bullish Engulfing
21. Definition
This pattern appears in a downtrend and warns that the trend will change. It consists of a black candlestick and a Doji with a downward gap at the opening. When the Doji is in the form of an Umbrella the pattern is called .....
Bullish harami
22. Definition

This pattern is characterized by a large white body engulfing a preceding smaller black body which appears during a downtrend. The white body does not necessarily engulf the shadows of the black body but totally engulfs the body itself. This is an important bottom reversal signal.

Recognition Criteria

1. The market is characterized by a prevailing downtrend.
2. A black body is observed on the first day.
3. The white body that is formed on the second day completely engulfs the black body of the preceding day.

Pattern Requirements and Flexibility

The length of the first black candlestick in Bullish Engulfing is not important. It can even be a Doji. However the second one has to be a normal or long white candlestick. Either the body tops or the body bottoms of the two candlesticks may be at the same level but in any case the white body should be longer than the previous black body.

Trader .....

Bullish harami cross
23. Definition
This pattern consists of a black body and a small white body that is completely inside the range of the black body. If an outline is drawn for the pattern it looks like a pregnant woman. This is not a coincidence. .....
Bullish kicking
24. Definition
This is a major bullish reversal pattern which is even more significant than a regular Bullish Harami. The outline again looks like a pregnant woman as with the Bullish Harami Pattern. However now the baby is a Doji. Basically the pattern is characterized by a black body followed by a Doji that is completely inside the range of the prior black body.
Recognition Criteria
1. The market is characterized by a prevailing downtrend.
2. A black body is observed on the first day.
3. The Doji that is formed on the second day is completely engulfed by the body of the first day.
Pattern Requirements and Flexibility
The Bullish Harami Cross consists of two candlesticks in which the body of the first black candlestick engulfs the body of the following Doji. The body of the first candlestick may be short.
Trader .....
Bullish meeting lines
25. Definition

This pattern consists firstly of a black Marubozu and then a white Marubozu. After the black Marubozu the market opens above the prior session .....

Bullish separating lines
26. Definition
This pattern occurs during a downtrend. The first day .....
Bullish tri star
27. Definition

This pattern is a sequence of three Doji. The occurrence of this pattern is extremely rare so when it occurs it should not be ignored.

Recognition Criteria

1. The market is characterized by a prevailing downtrend.

2. Three consecutive Doji are seen. 3. The second day gaps below the first and the third.

Pattern Requirements and Flexibility

The Bullish Three Star consists of three consecutive Doji in which the second Doji gaps below the other two Doji. It is sufficient that the gap is a body gap. There is no need for a gap between shadows.

Trader?s Behavior

Bullish Tri Star requires that we have a market which was in a downtrend for a long time. However the weakening trend is probably indicated by the bodies that are becoming smaller. The first doji is a matter of concern. The second Doji clearly indicates that market is losing its direction. Finally the third doji warns that the downtrend is over. This pattern indicates too much indecision leading to the reversal of positions.

Buy/Stop Loss Levels

The confirmation level is defined as the last close. Prices should cross above this level for confirmation. The stop loss level is defined as the lower of the last two lows. Following the BUY if prices go down instead of going up and close or make two consecutive daily lows below the stop loss level while no bearish pattern is detected then the stop loss is triggered. .....

Busted patterns
28. Definition

This pattern is a sequence of three Doji. The occurrence of this pattern is extremely rare so when it occurs it should not be ignored.

Recognition Criteria

1. The market is characterized by a prevailing downtrend.
2. Three consecutive Doji are seen.
3. The second day gaps below the first and the third.

Pattern Requirements and Flexibility

The Bullish Three Star consists of three consecutive Doji in which the second Doji gaps below the other two Doji. It is sufficient that the gap is a body gap. There is no need for a gap between shadows.

Trader .....

Candle black
29. Definition

This candlestick implies normal selling pressure and shows that prices declined during the day from open to close and the sellers were in control.

Recognition Criteria

1. The body of the candlestick is black with normal length.

Candlestick Requirements and Flexibility

The black body of the candlestick should be of average length. The shadows? length is not important.

Trader's Behavior

This candlestick alone is not reliable enough to decide about bearishness since it reflects only one day's trading that was under sellers control. It may show the continuation of a trend as well as the reversal. Other neighboring candlesticks must be taken into consideration for a decision regarding market direction. .....

Candle short black
30. Definition

This candlestick implies normal selling pressure and shows that prices declined during the day from open to close and the sellers were in control.

Recognition Criteria

1. The body of the candlestick is black with normal length.

Candlestick Requirements and Flexibility

The black body of the candlestick should be of average length. The shadows length is not important.

Trader's Behavior

This candlestick alone is not reliable enough to decide about bearishness since it reflects only one day's trading that was under sellers control. It may show the continuation of a trend as well as the reversal. Other neighboring candlesticks must be taken into consideration for a decision regarding market direction. .....

Candle short white
31. Definition

This candlestick implies a relatively weak selling pressure with a limited price movement. Recognition Criteria

1. The body of the candlestick is black and small.

Candlestick Requirements and Flexibility

The black body of the candlestick should be small. The lengths of the shadows are not important.

Trader .....

Candle white
32. Definition

This candlestick implies a relatively weak buying pressure with a limited price movement. Recognition Criteria

1. The body of the candlestick is white and small.

Candlestick Requirements and Flexibility

The white body of the candlestick should be small. The lengths of the shadows are not important.

Trader .....

Chart patterns
33. "Definition
This candlestick implies normal buying pressure and shows that prices advanced during the day from open to close and the buyers were in control.
Recognition Criteria
1. The body of the candlestick is white with normal length.
Candlestick Requirements and Flexibility
The white body of the candlestick should be of average length. The shadows? length is not important.
Trader?s Behavior
This candlestick alone is not reliable enough to decide about bullishness since it reflects only one day?s trading that was under buyers? control. It may show the continuation of a trend as well as the reversal. Other neighboring candlesticks must be taken into consideration for a decision regarding market direction. .....
Closing black marubozu
34. There are hundreds of thousands of market participants buying and selling securities for a wide variety of reasons: hope of gain fear of loss tax consequences short-covering hedging stop-loss triggers price target triggers fundamental analysis technical analysis broker recommendations and a few dozen more. Trying to figure out why participants are buying and selling can be a daunting process. Chart patterns put all buying and selling into perspective by consolidating the forces of supply and demand into a concise picture. As a complete pictorial record of all trading chart patterns provide a framework to analyze the battle raging between bulls and bears. More importantly chart patterns and technical analysis can help determine who is winning the battle allowing traders and investors to position themselves accordingly.
In many ways chart patterns are simply more complex versions of trend lines. It is important that you read and understand our articles on Support and Resistance as well as Trend Lines before you continue.
Chart pattern analysis can be used to make short-term or long-term forecasts. The data can be intraday daily weekly or monthly and the patterns can be as short as one day or as long as many years. Gaps and outside reversals may form in one trading session while broadening tops and dormant bottoms may require many months to form. .....
Closing white marubozu
35. Definition

This candlestick represents extreme bearishness and it is characterized with a long black body that has an upper shadow but no lower shadow.

Recognition Criteria

1. The body of the candlestick is black and long.
2. There is no lower shadow.

Candlestick Requirements and Flexibility

The black body of the candlestick should be longer relative to the other candlesticks on the chart. It has a shadow on the opening side but no shadow on the closing side.

Trader .....

Collapsing doji star
36. Definition

This candlestick represents extreme bullishness and it is characterized with a long white body that has a lower shadow but no upper shadow.

Recognition Criteria

1. The body of the candlestick is white and long.
2. There is no upper shadow.

Candlestick Requirements and Flexibility

The white body of the candlestick should be longer relative to the other candlesticks on the chart. It has a shadow on the opening side but no shadow on the closing side.

Trader .....

Evening star
37. Definition

This pattern appears in an uptrend and warns that the trend will change. It consists of a white candlestick and a Doji with a gap up at the opening. If the Doji is in the form of an Umbrella the pattern is called .....

Event patterns
38. Definition

This pattern appears in a downtrend and warns that the trend will change. It consists of a black candlestick and a Doji with a downward gap at the opening. When the Doji is in the form of an Umbrella the pattern is called .....

Hammer inverted 2 line
39. Definition

This pattern is characterized by a large black body engulfing a preceding smaller white body which appears during an uptrend. The black body does not necessarily engulf the shadows of the white body but totally engulfs the body itself. This is an important top reversal signal.

Recognition Criteria

1. The market is characterized by a prevailing uptrend.
2. A white body is formed observed on the first day.
3. The black body that is formed on the second day completely engulfs the white body of the preceding day.

Pattern Requirements and Flexibility

The length of the first white candlestick is not important. It can even be a Doji. The second one however has to be a normal or long black candlestick. Either the body tops or the body bottoms of the two candlesticks may be at the same level but in any case the black body of the Bearish Engulfing Pattern should be longer than the previous white body.

Trader?s Behavior

While the market is characterized by a definite uptrend lower volume of buying is observed with the occurrence of a white body on the first day. The next day the market opens at new highs. It looks as if there?s going to be more bullish trading however the uptrend loses momentum and the bears take the lead during the day. The selling pressure overcomes buying and finally the market closes below the open of the previous day. The uptrend is damaged.

Sell/Stop Loss Levels

The confirmation level is defined as the last close. Prices should cross below this level for confirmation. The stop loss level is defined as the last high. Following the bearish signal if prices go up instead of going down and close or make two consecutive daily highs above the stop loss level while no bullish pattern is detected then the stop loss is triggered. .....

Hanging man
40. Definition

This pattern is characterized by a large white body engulfing a preceding smaller black body which appears during a downtrend. The white body does not necessarily engulf the shadows of the black body but totally engulfs the body itself. This is an important bottom reversal signal.

Recognition Criteria

1. The market is characterized by a prevailing downtrend.
2. A black body is observed on the first day.
3. The white body that is formed on the second day completely engulfs the black body of the preceding day.

Pattern Requirements and Flexibility

The length of the first black candlestick in Bullish Engulfing is not important. It can even be a Doji. However the second one has to be a normal or long white candlestick. Either the body tops or the body bottoms of the two candlesticks may be at the same level but in any case the white body should be longer than the previous black body.

Trader .....

In neck
41. A doji line that develops when the Doji is at or very near the low of the day. .....
Inverted hammer 2 line 1
42. Hammer candlesticks form when a security moves significantly lower after the open but rallies to close well above the intraday low. The resulting candlestick looks like a square lollipop with a long stick. If this candlestick forms during a decline then it is called a Hammer .....
Kicking bearish
43. A one day bullish reversal pattern. In a downtrend the open is lower then it trades higher but closes near its open therefore looking like an inverted lollipop. .....
Kicking bullish
44. Hanging Man candlesticks form when a security moves significantly lower after the open but rallies to close well above the intraday low. The resulting candlestick looks like a square lollipop with a long stick. If this candlestick forms during an advance then it is called a Hanging Man. .....
Ladder bottom
45. Definition
This pattern consists of a white body and a small black body that is completely inside the range of the white body. If an outline is drawn for the pattern it looks like a pregnant woman. This is not a coincidence. .....
Last engulfing bottom
46. Definition
This pattern consists of a black body and a small white body that is completely inside the range of the black body. If an outline is drawn for the pattern it looks like a pregnant woman. This is not a coincidence. .....
Last engulfing top
47. Definition
This is a major bearish reversal pattern which is even more significant than a regular Bearish Harami. The outline again looks like a pregnant woman as with the Bearish Harami Pattern. However now the baby is a Doji. Basically the pattern is characterized by a white body followed by a Doji that is completely inside the range of the prior white body.
Recognition Criteria
1. The market is characterized by a prevailing uptrend.
2. A white body is observed on the first day.
3. The Doji that is formed on the second day is completely engulfed by the body of the first day.
Pattern Requirements and Flexibility
The Bearish Harami Cross consists of two candlesticks in which the body of the first white candlestick engulfs the body of the following Doji. The body of the first candlestick may be short.
Trader .....
Long day black
48. Definition
This is a major bullish reversal pattern which is even more significant than a regular Bullish Harami. The outline again looks like a pregnant woman as with the Bullish Harami Pattern. However now the baby is a Doji. Basically the pattern is characterized by a black body followed by a Doji that is completely inside the range of the prior black body. Recognition Criteria
1. The market is characterized by a prevailing downtrend.
2. A black body is observed on the first day.
3. The Doji that is formed on the second day is completely engulfed by the body of the first day.
Pattern Requirements and Flexibility
The Bullish Harami Cross consists of two candlesticks in which the body of the first black candlestick engulfs the body of the following Doji. The body of the first candlestick may be short.
Trader .....
Marubozu closing white
49. A one day bullish reversal pattern. In a downtrend the open is lower then it trades higher but closes near its open therefore looking like an inverted lollipop. .....
Marubozu opening black
50. Definition
This pattern consists firstly of a white Marubozu and then a black Marubozu. After the white Marubozu the market opens below the prior session .....
Marubozu opening white
51. Definition
This pattern consists firstly of a black Marubozu and then a white Marubozu. After the black Marubozu the market opens above the prior session .....
Rising window
52. Definition

This pattern occurs during an uptrend. The first day .....

Separating lines bearish
53. Definition

This pattern occurs during a downtrend. The first day's black candlestick is followed by a white candlestick that opens sharply lower and closes at the same level as the prior sessions close. It is similar to the Piercing Line pattern. However the amount the second day rebounds is different. The Piercing Line?s second day closes above the midpoint of the first day's body while the second day the Bullish Meeting Line closes the same as the first day. Consequently the Piercing Line is a more significant bottom reversal. Nonetheless the Bullish Meeting Line deserves due respect as well.

Recognition Criteria

1. The market is characterized by a prevailing downtrend.
2. On the first day a black candlestick is observed.
3. Then we see a white candlestick on the second day.
4. The closing prices are the same or almost the same on both days.

Pattern Requirements and Flexibility

The Bullish Meeting Line consists of two candlesticks first a black candlestick then a white candlestick; both not short. The closing prices of both days should be the same or almost the same.

Trader?s Behavior

The occurrence of this pattern reflects a stalemate between bulls and bears. The market is in a downtrend when a strong black candlestick is formed which further supports the trend. The next day opens sharply lower causing the bears to feel more confident. Then the bulls start a counterattack pushing prices up and leading to a close equal to (or very close to) the previous close. The downtrend is now breached.

Buy/Stop Loss Levels

The confirmation level is defined as the last close. Prices should cross above this level for confirmation.

The stop loss level is defined as the last low. Following the BUY if prices go down instead of going up and close or make two consecutive daily lows below the stop loss level while no bearish pattern is detected then the stop loss is triggered. .....

Separating lines bullish
54. A three day bullish reversal pattern that is very similar to the Morning Star. The first day is in a downtrend with a long black body. The next day opens lower with a Doji that has a small trading range. The last day closes above the midpoint of the first day. .....
Shooting star (1 line)
55. A three day bullish reversal pattern consisting of three candlesticks - a long-bodied black candle extending the current downtrend a short middle candle that gapped down on the open and a long-bodied white candle that gapped up on the open and closed above the midpoint of the body of the first day. .....
Side by side white lines bearish
56. Definition

This candlestick represents extreme bullishness and it is characterized with a long white body that has an upper shadow but no lower shadow.

Recognition Criteria

1. The body of the candlestick is white and long.
2. There is no lower shadow.
Candlestick Requirements and Flexibility

The white body of the candlestick should be longer relative to the other candlesticks on the chart. It has a shadow on the closing side but no shadow on the opening side.

Traders Behavior

A White Opening Marubozu indicates that buyers controlled the price action from the first trade to the last trade. The day opens and prices continue to go up all day long without looking back thus forming a long white day with no lower shadow. However the day does not close at the high of the day and thus creates an upper shadow.

The candlestick is generally bullish. However its position within the broader technical picture is also important. It may show a potential turning point and that prices have reached a support level after an extended decline (Bullish Belt Hold Pattern). If it is seen after a long and significant rally it may point to excessive bullishness and that prices are at dangerously high levels. Still the candlestick alone is not reliable enough to decide the direction of the markets since it reflects only one days trading. .....

Three black crows
57. A single day pattern that can appear in an uptrend. It opens higher trades much higher then closes near its open. It looks just like the Inverted Hammer except that it is bearish .....
Three stars in the south
58. Definition

This candlestick has a tiny black body with upper and lower shadows that have a greater length than the body. It is accepted as a type of Doji and will act as a Doji when it appears.

Recognition Criteria

1. The body of the candlestick is black and very small.
2. The upper and lower shadows are longer than the body.
Candlestick Requirements and Flexibility

The black body of the candlestick should be very small. The lengths of the shadows should be greater than the length of the body.

Trader?s Behavior

The market moves higher and then sharply lower or vice versa. It then closes below the opening price creating a tiny black body. This represents complete indecision between the bulls and the bears. The actual length of the shadows is not important. The small body relative to the shadows is what makes the spinning top.

If a Black Spinning Top is observed after a long rally or long white candlestick this implies weakness among the bulls and it is a warning of a potential change or an interruption in the trend.

If a Black Spinning Top is observed after a long decline or a long black candlestick this implies weakness among the bears and it is a warning of a potential change or an interruption in the trend.

Like most other single candlestick patterns the Black Spinning Top has low reliability. It reflects only one day's trading and can be interpreted both as a continuation or a reversal pattern. This pattern must be used with other candlesticks to confirm a trend. .....

Three white soldiers
59. Definition

This candlestick has a tiny white body with upper and lower shadows that have a greater length than the body. It is accepted as a type of Doji and will act as a Doji when it appears Recognition Criteria

1. The body of the candlestick is white and very small.
2. The upper and lower shadows are longer than the body.

Candlestick Requirements and Flexibility

The white body of the candlestick should be very small. The lengths of the shadows should be greater than the length of the body.

Trader's Behavior

The market moves higher and then sharply lower or vice versa. It then closes above the opening price creating a tiny white body. This represents complete indecision between the bulls and the bears. The actual length of the shadows is not important. The small body relative to the shadows is what makes the spinning top.

If a White Spinning Top is observed after a long rally or a long white candlestick this implies weakness among the bulls and it is a warning of a potential change or an interruption in the trend.

If a White Spinning Top is observed after a long decline or a long black candlestick this implies weakness among the bears and it is a warning of a potential change or an interruption in the trend.

Like most other single candlestick patterns the White Spinning Top has low reliability. It reflects only one day's trading and can be interpreted both as a continuation or a reversal pattern. This candlestick needs to be used with other candlesticks to confirm a trend. .....

Thrusting
60. A bullish reversal pattern with two black bodies surrounding a white body. The closing prices of the two black bodies must be equal. A support price is apparent and the opportunity for prices to reverse is quite good. .....
Tri star bullish
61. A bearish reversal pattern consisting of three consecutive long black bodies where each day closes at or near its low and opens within the body of the previous day. .....
Upside Tasuki gap
62. A bullish reversal pattern consisting of three consecutive long white bodies. Each should open within the previous body and the close should be near the high of the day .....
White candle
63. Definition

The pattern is a sequence of three Doji. The occurrence of this pattern is extremely rare so when it occurs it should not be ignored.

Recognition Criteria

1. The market is characterized by a prevailing uptrend.
2. Three consecutive Doji are seen.
3. The second day gaps above the first and the third.

Pattern Requirements and Flexibility

The Bearish Three Star consists of three consecutive Doji in which the second Doji gaps above the two other Doji. It is sufficient that the gap is a body gap. There is no need for a gap between shadows.

Trader .....

White long day
64. Definition

This pattern is a sequence of three Doji. The occurrence of this pattern is extremely rare so when it occurs it should not be ignored.

Recognition Criteria

1. The market is characterized by a prevailing downtrend.
2. Three consecutive Doji are seen.
3. The second day gaps below the first and the third.

Pattern Requirements and Flexibility

The Bullish Three Star consists of three consecutive Doji in which the second Doji gaps below the other two Doji. It is sufficient that the gap is a body gap. There is no need for a gap between shadows.

Trader .....

Rising Three Methods
65. A three day bearish pattern that only happens in an uptrend. The first day is a long white body followed by a gapped open with the small black body remaining gapped above the first day. The third day is also a black day whose body is larger than the second day and engulfs it. The close of the last day is still above the first long white day. .....
Piercing Line
66. A continuation pattern with a long white body followed by another white body that has gapped above the first one. The third day is black and opens within the body of the second day then closes in the gap between the first two days but does not close the gap. .....
Long Legged Doji
67. Definition

This candlestick implies normal buying pressure and shows that prices advanced during the day from open to close and the buyers were in control.

Recognition Criteria

1. The body of the candlestick is white with normal length.
Candlestick Requirements and Flexibility

The white body of the candlestick should be of average length. The shadows .....

BEARISH LADDER TOP
68. Definition

This candlestick represents extreme bullishness and is characterized by a long white body having no shadows on either end.

Recognition Criteria

1. The body of the candlestick is white and long.
2. There are no upper or lower shadows.
Candlestick Requirements and Flexibility

The white body of the candlestick should be longer relative to the other candlesticks on the chart. Shadows should not exist.

Trader .....

BULLISH STOP LOSS
69. Definition
This candlestick has a tiny white body with upper and lower shadows that have a greater length than the body. It is accepted as a type of Doji and will act as a Doji when it appears
Recognition Criteria
1. The body of the candlestick is white and very small.
2. The upper and lower shadows are longer than the body.
Candlestick Requirements and Flexibility
The white body of the candlestick should be very small. The lengths of the shadows should be greater than the length of the body.
Trader .....
BEARISH EVENING STAR
70. A candlestick that gaps away from the previous candlestick is said to be in star position. Depending on the previous candlestick the star position candlestick gaps up or down and appears isolated from previous price action. .....
Above the Stomach
71. A short day represents a small price move from open to close where the length of the candle body is short. .....
BULLISH HAMMER
72. A bullish continuation pattern in which a long white body is followed by three small body days each fully contained within the range of the high and low of the first day. The fifth day closes at a new high .....
BULLISH INVERTED HAMMER
73. A bullish two day reversal pattern. The first day in a downtrend is a long black day. The next day opens at a new low then closes above the midpoint of the body of the first day .....
BULLISH PIERCING LINE
74. Candlesticks with a long upper shadow and short lower shadow indicate that buyers dominated during the first part of the session bidding prices higher. Conversely candlesticks with long lower shadows and short upper shadows indicate that sellers dominated during the first part of the session driving prices lower .....
BULLISH HOMING PIGEON
75. This candlestick has long upper and lower shadows with the Doji in the middle of the day's trading range clearly reflecting the indecision of traders .....
BULLISH MATCHING LOW
76. A long day represents a large price move from open to close where the length of the candle body is long. .....
BULLISH ONE WHITE SOLDIER
77. Definition

This is a five candlestick pattern that starts with three strong white candlesticks. The uptrend continues with the fourth higher close. The next day gaps lower and closes much lower than the previous day or two. This may imply a bearish reversal.

Recognition Criteria

1. The market is characterized by a prevailing uptrend.
2. Three strong white candlesticks occur much like the Three White Soldiers pattern.
3. The fourth white candlestick closes also higher but has a long lower shadow.
4. The fifth day is a strong black with an open below the previous day .....

BULLISH MORNING STAR
78. Definition

This is not a standard candlestick pattern. It is simply the stop loss compliment of all the confirmed bearish patterns. The conditions for the activation of the Bullish stop loss are two consecutive highs or a close above the stop loss level of a recently confirmed bearish pattern.

Recognition Criteria

1. A bearish pattern is detected and its confirmation and stop loss levels are established.
2. The pattern then is confirmed and a SELL or SHORT signal is issued.
3. Prices either close once above the stop loss level or test highs above the stop loss level in two consecutive days.
4. The Bullish stop loss is triggered.

Pattern Requirements and Flexibility

All bearish candlesticks are accompanied by a specific stop loss level which becomes active when the pattern is confirmed. A bearish confirmation consequently may lead to a bearish signal such as a SELL or SHORT signal. Following the bearish signal if prices go up instead of going down and close or make two consecutive daily highs above the stop loss level while no bullish pattern is detected then the stop loss is triggered. Once triggered the stop loss level of the recently confirmed bearish pattern starts acting as the confirmation level of a bullish pattern itself. The system then seeks a bullish confirmation to issue a BUY signal. Prices must cross above the stop loss level for the bullish confirmation of the triggered stop loss.

Trader .....

BULLISH MORNING DOJI STAR
79. Definition

This pattern is a made up of three candlesticks. The black candlesticks of the second and third day represent the two crows that perched on the first white candlestick. Recognition Criteria

1. The market is characterized by a prevailing uptrend. 2. A strong white candlestick appears on the first day. 3. The second day is a black candlestick that gaps up. 4. On the last day another black candlestick appears that opens inside the body of the second day and then closes inside the body of the first day.

Pattern Requirements and Flexibility

The Bearish Two Crows should start with a strong white body. A black body that forms an upside body gap with the first candlestick follows. The third day is another black body that opens at or above the close of the second day. The third day should close within the body limits of the first day.

Trader .....

BULLISH DOWNSIDE GAP TWO RABBITS
80. Definition

This pattern is a small white body contained by a prior relatively long white body. It resembles the Harami pattern except that both bodies are white. Recognition Criteria

1. The market is characterized by a prevailing uptrend.
2. A white body is observed on the first day.
3. On the second day we again see a white body which is completely engulfed by the body of the first day.
Pattern Requirements and Flexibility

The Bearish Descending hawk consists of two white candlesticks in which the first day .....

BULLISH UNIQUE THREE RIVER BOTTOM
81. Definition

This is a three-candlestick pattern signaling a major top reversal. It is composed of a white candlestick followed by a short candlestick which characteristically gaps up to form a star. Then we have a third black candlestick whose closing is well into the first session .....

BULLISH THREE WHITE SOLDIERS
82. Definition

This pattern occurs at the bottom of a trend or during a downtrend and it is called a Hammer since it is hammering out of a bottom. It is a single candlestick pattern that has a long lower shadow and a small body at or very near the top of its daily trading range.

Recognition Criteria

1. The market is characterized by a prevailing downtrend.
2. A small body at the upper end of the trading range is observed. The color of the body is not important.
3. The lower shadow of this candlestick is at least twice as long as the body.
4. There is (almost) no upper shadow.

Pattern Requirements and Flexibility

The body of the Hammer should be small. The lower shadow should be at least twice as long as the body but not shorter than an average candlestick. It is desired that there is no or a very tiny upper shadow. The bottom of the Hammer .....

BULLISH DESCENT BLOCK
83. Definition

This pattern consists of a black body followed by an Inverted Hammer that is characterized by a long upper shadow and a small body. It is similar in shape to the Bearish Shooting Star but unlike the Shooting Star the Inverted Hammer appears in a downtrend and signals a bullish reversal.

Recognition Criteria

1. The market is characterized by a prevailing downtrend.
2. The first day of the pattern is a black candlestick.
3. On the second day a small body at the lower end of the trading range is observed. Color of this body is not important.
4. The upper shadow of this second candlestick should be at least twice as long as the body.
5. There is (almost) no lower shadow.

Pattern Requirements and Flexibility

The body of the Inverted Hammer should be small. The upper shadow should be at least twice as long as the body but not shorter than an average candlestick length. It is desired that there is no or a very tiny lower shadow. The bottom of the inverted hammer should be lower than the preceding candlestick .....

BULLISH DELIBERATION BLOCK
84. Definition

This is a bottom reversal pattern with two candlesticks. A black candlestick appears on the first day while a downtrend is in progress. The second day opens at a new low with a gap down and closes more than halfway into the prior black body leading to the formation of a strong white candlestick.

Recognition Criteria

1. The market is characterized by a prevailing downtrend.
2. A black candlestick appears on the first day.
3. A white candlestick opens on the second day with a gap down and closes more than halfway into the body of the first day.
4. The second day fails to close above the body of the first day.

Pattern Requirements and Flexibility

The first day of the Bullish Piercing Line pattern is a normal or long black candlestick. The second day should open well below the close of the first day and close more than halfway into the prior black candlestick .....

BULLISH TWO RABBITS
85. Definition This pattern is a small black body contained by a prior relatively long black body. It resembles the Harami pattern except that both bodies are black. Recognition Criteria 1. The market is characterized by a prevailing downtrend. 2. A black body is observed on the first day. 3. On the second day we again see a black body which is completely engulfed by the body of the first day. Pattern Requirements and Flexibility The Bullish Homing Pigeon consists of two black candlesticks in which the first day .....
BULLISH THREE INSIDE UP
86. Definition

This pattern occurs when two black days appear with equal closes in a downtrend. Matching Low indicates a bottom has been made even though the new low was tested and there was no follow through which is indicative of a good support price.

Recognition Criteria

1. The market is characterized by a prevailing downtrend.
2. A black body is observed on the first day.
3. The second day follows with another black candlestick whose closing price is exactly equal to the closing price of the first day.

Pattern Requirements and Flexibility

The Bullish Matching Low consists of two black candlesticks. The length of the first candlestick should be normal or long. Both candlesticks should close at the same level.

Trader's Behavior

The market has been lower as evidenced by another strong black day. The next day open higher and trade still higher and then it closes at the same price. This is indicative of short term support and will cause much concern with the bears. What reflects the psychology of the market is not necessarily the daily trading action but with the fact that both days close at the same level.

Buy/Stop Loss Levels

The confirmation level is defined as the midpoint of the first black body. Prices should cross above this level for confirmation.

The stop loss level is defined as the lower of the last two lows. Following the BUY if prices go down instead of going up and close or make two consecutive daily lows below the stop loss level while no bearish pattern is detected then the stop loss is triggered. .....

BULLISH THREE OUTSIDE UP
87. Definition

This pattern appears in a downtrend and consists of a black candlestick and a white candlestick in which the white candlestick opens above the preceding day .....

Benefits of Cauliflower
Colon health. Cauliflower juice has antiinflammatory and a calming effect that help prevent chronic inflammation that leads to certain bowel conditions. When eaten, its dietary fiber is important for normal bowel work and protects the colon from cancercausing dama .....
Forever Young Naturally Lifestyle
De stressing Begin chanting. Chanting a mantra seems to help reduce stress, research reveals. Seek out a meditation class based on an Eastern tradition to learn how, or try Sivananda or Kundalini yoga, which teach the techniques. .....
What to Eat in Meghalaya
Green bean. Green beans, also known as string bean, snap bean in the northeastern and western United States, or ejotes in Mexico, are the unripe fruit of various cultivars of the common bean (Phaseolus vulgaris). Green bean cultivars have been selected especiall .....
The Worlds Highest Paid Athletes
Floyd Mayweather Jr. Total Earnings: $300 million Salary/Winnings: $285 million Endorsements: $15 million Mayweathers $300 million year shatters the record for athlete earnings, which was previously held by Tiger Woods who banked $115 million in 2008. Mayweathers May 2 f .....
Benefits of Lime
Gums. The root cause of gum problems is a deficiency of vitaminC (Scurvy, which gives bleeding and spongy gums) and microbial growth. Sometimes, the ulcers come from physical trauma. In all of these situations, limes can help. Its vitaminC cures scurvy, Fl .....
Best Airlines in the World
Qatar Airways. In a relatively short time, Qatar Airways has grown to more than 140 destinations worldwide, offering levels of service excellence that helped the award winning carrier to become best in the world. Qatar Airways network spans business and leisure des .....
Wildlife Sanctuaries and National Parks of India
Bannerghatta National Park. Located in Karnataka, the Bannerghatta National Park contains several attractions such as trekking, animal rescue center, a zoo, an aquarium and a protected forest. The Park is famous as a corridor for the Asiatic Elephants. Tiger, Leopard, Sloth Bea .....
Most Obscure Sports In The World
Sports with no cloths. There is a lot of interest in people playing sport with no clothes on. Taking off your clothes to play some sports is not recommended, and watching it being played by some people may not be a good idea either. It is a social custom in most parts of t .....
Top Hotels
The Darling Hotel Sydney Australia. If you want to relax truly, then you may be at the right destination in Sydney. The Darling Sydney, with a 16-room spa is the first of its kind in Sydney, delivering the highest standards of pampering to guests, allowing them to indulge in treatments .....
Thomas Edison
Starting a business starting a family. In 1871, Edison set up a workshop and laboratory in Newark, New Jersey, just across the Hudson River from New York City. Newark was known at the time for its community of fine machinists, the kind of people Edison needed to build his telegraph equipm .....
Benefits of Apples
Heart Disease. Eating apples is associated with a lower risk of death from heart disease, an association thats thought to be related to their content of antioxidant flavonoids. .....
Benefits of Rosemary
Rosemary for beautiful skin and hair. Rosemary is one of best hair tonics available, whether you are worried about hair loss, or just want healthy, happy hair, rosemary extracts used in shampoos and herbal hair rinses will work wonders. A few drops of the essential oil can be applied dir .....
Simple Science
The Instability of the Air. Air: We are usually not conscious of the air around us, but sometimes we realize that the air is heavy, while at other times we feel the bracing effect of the atmosphere. We live in an ocean of air as truly as fish inhabit an ocean of water. If you h .....
Chourishi Systems